©Themoon EXAM SOLUTIONS
22/11/2024 11:25AM
Paper 3 - Edexcel A Level Business
Questions and Answers
Pricing strategy - Answers✓✓A plan for the medium to long term where a price is set with the
intention of meeting marketing objectives
Pricing strategy - cost plus pricing - Answers✓✓A strategy where the prices is set by applying
a percentage margin to the unit cost. For example, adding 50% to the cost of producing the
product
Pricing strategy - price skimming - Answers✓✓A strategy where a business charges a premium
price when the product is first launched to maximise revenue per unit
Pricing strategy - penetration pricing - Answers✓✓A strategy where a business offers a
significantly lower price than normal to maximise volume sold and build a loyal consumer base
Pricing strategy - dynamic pricing - Answers✓✓A strategy where a business sets flexible prices
for products based on current market demand
Recruitment - Answers✓✓The process of inviting people to apply for a vacancy in a business
Selection - Answers✓✓The process of choosing the appropriate new member of staff
, ©Themoon EXAM SOLUTIONS
22/11/2024 11:25AM
Training - Answers✓✓The process of developing skills in workers through specifically design
training programmes
Internal recruitment - Answers✓✓Recruiting for a vacancy from within the business
External recruitment - Answers✓✓Recruiting for a vacancy from outside of the business
Induction training - Answers✓✓The training programme designed for when an employee is
new to a business
On-the-job training - Answers✓✓Training that is carried out at the place of work by carrying
out the responsibilities of the job
Off-the-job training - Answers✓✓Training that is carried out away from the place of work,
such as through a lecture or college course
Production capacity - Answers✓✓The measure of how much output it can achieve in a given
time
Capacity utilisation - Answers✓✓The proportion of a business' capacity that is being used
within a specific time period. What percentage of the total capacity was produced?
Spare (excess) capacity - Answers✓✓Where actual output is less than capacity
Excess demand - Answers✓✓Where demand for a business' products or services is more than
their capacity
22/11/2024 11:25AM
Paper 3 - Edexcel A Level Business
Questions and Answers
Pricing strategy - Answers✓✓A plan for the medium to long term where a price is set with the
intention of meeting marketing objectives
Pricing strategy - cost plus pricing - Answers✓✓A strategy where the prices is set by applying
a percentage margin to the unit cost. For example, adding 50% to the cost of producing the
product
Pricing strategy - price skimming - Answers✓✓A strategy where a business charges a premium
price when the product is first launched to maximise revenue per unit
Pricing strategy - penetration pricing - Answers✓✓A strategy where a business offers a
significantly lower price than normal to maximise volume sold and build a loyal consumer base
Pricing strategy - dynamic pricing - Answers✓✓A strategy where a business sets flexible prices
for products based on current market demand
Recruitment - Answers✓✓The process of inviting people to apply for a vacancy in a business
Selection - Answers✓✓The process of choosing the appropriate new member of staff
, ©Themoon EXAM SOLUTIONS
22/11/2024 11:25AM
Training - Answers✓✓The process of developing skills in workers through specifically design
training programmes
Internal recruitment - Answers✓✓Recruiting for a vacancy from within the business
External recruitment - Answers✓✓Recruiting for a vacancy from outside of the business
Induction training - Answers✓✓The training programme designed for when an employee is
new to a business
On-the-job training - Answers✓✓Training that is carried out at the place of work by carrying
out the responsibilities of the job
Off-the-job training - Answers✓✓Training that is carried out away from the place of work,
such as through a lecture or college course
Production capacity - Answers✓✓The measure of how much output it can achieve in a given
time
Capacity utilisation - Answers✓✓The proportion of a business' capacity that is being used
within a specific time period. What percentage of the total capacity was produced?
Spare (excess) capacity - Answers✓✓Where actual output is less than capacity
Excess demand - Answers✓✓Where demand for a business' products or services is more than
their capacity
