EDEXCEL A-Level Business - Theme 1 Revision Questions and Answers

Added Value Added value is the value of the finished output over and above the cost of achieving it i.e. the cost of inputs and transformations. Value can be added by manufacturing, branding, technology and a unique selling point. Calculated as: Selling price - cost of inputs - cost of transformation Advertising A promotional method that involves the use of media to communicate with existing and potential consumers. Media used may be wide ranging from magazines and television to billboards and posters. Can be informative or persuasive but is designed to generate awareness and desire. Aesthetics The element of the design mix that considers the look and the feel of the product as well as how our senses respond to the product. Combined with cost and function in new product development. Autocratic Leadership The leader makes all of the decisions and informs subordinates. Subordinates are closely supervised and given little autonomy or authority. Decision making is centralised. Bias A preference to hold a viewpoint that does not take into account all of the alternatives within a population. A statistic is biased if it is weighted towards a specific subgroup of a population. Bias may be caused due to the self interest of those undertaking the research. Bonus The payment of a discretionary lump sum to an employee, normally based on predetermined criteria. Bonuses are a financial incentive, they can be: -Personal - based on performance e.g. following a review