EDEXCEL A-Level Business - Theme 1 EXAM
QUESTIONS WITH CORRECT ANSWERS SOLVED
Added Value - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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
-Company - based on company performance e.g. year end results
-Seasonal - based on manager's decision e.g. a Christmas bonus.
Bonuses are not guaranteed and should be viewed as "one offs", however once employees have
received them they may grow to expect them.
Boston Matrix - CORRECT ANSWERS✔✔A model used to analyse a firm's product portfolio by
considering market share in relation to market growth for each product.
It helps inform future marketing decisions.
Products are classified as:
-Rising Stars
-Cash Cow
-Problem Child
-Dog
, Boston Matrix Diagram - CORRECT ANSWERS✔✔
Brand - CORRECT ANSWERS✔✔A feature of a business or product that is recognised by customers and
distinguishes it from competitors.
Brand portrays an image to the customer and makes a promise as to what they can expect based on
consistency and perception.
Leads to brand loyalty whereby customers will continue to buy products from that firm.
Branding - CORRECT ANSWERS✔✔A promotional method that involves the creation of an identity for
the business that distinguishes the firm and its products from other firms.
Branding can add value to a product allowing firms to charge higher prices.
Leads to brand loyalty whereby customers will continue to buy products from that firm.
Business Objectives - CORRECT ANSWERS✔✔Targets that a business wants to achieve within a set
period of time.
A business will set objectives for the organisation as a whole e.g. social and ethical objectives.
Each functional area will set functional objectives.
Objectives should be SMART.
Business to Business (B2B) - CORRECT ANSWERS✔✔When one business sells its goods or services to
another business (B2B) i.e. industrial markets.
B2B markets are likely to involve less intermediaries with greater emphasis on the relationship between
buyers and sellers.
QUESTIONS WITH CORRECT ANSWERS SOLVED
Added Value - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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 - CORRECT ANSWERS✔✔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
-Company - based on company performance e.g. year end results
-Seasonal - based on manager's decision e.g. a Christmas bonus.
Bonuses are not guaranteed and should be viewed as "one offs", however once employees have
received them they may grow to expect them.
Boston Matrix - CORRECT ANSWERS✔✔A model used to analyse a firm's product portfolio by
considering market share in relation to market growth for each product.
It helps inform future marketing decisions.
Products are classified as:
-Rising Stars
-Cash Cow
-Problem Child
-Dog
, Boston Matrix Diagram - CORRECT ANSWERS✔✔
Brand - CORRECT ANSWERS✔✔A feature of a business or product that is recognised by customers and
distinguishes it from competitors.
Brand portrays an image to the customer and makes a promise as to what they can expect based on
consistency and perception.
Leads to brand loyalty whereby customers will continue to buy products from that firm.
Branding - CORRECT ANSWERS✔✔A promotional method that involves the creation of an identity for
the business that distinguishes the firm and its products from other firms.
Branding can add value to a product allowing firms to charge higher prices.
Leads to brand loyalty whereby customers will continue to buy products from that firm.
Business Objectives - CORRECT ANSWERS✔✔Targets that a business wants to achieve within a set
period of time.
A business will set objectives for the organisation as a whole e.g. social and ethical objectives.
Each functional area will set functional objectives.
Objectives should be SMART.
Business to Business (B2B) - CORRECT ANSWERS✔✔When one business sells its goods or services to
another business (B2B) i.e. industrial markets.
B2B markets are likely to involve less intermediaries with greater emphasis on the relationship between
buyers and sellers.
