PAPER 3 - EDEXCEL A LEVEL BUSINESS
EXAM QUESTIONS AND ANSWERS 100%
CORRECT!!
, Pricing strategy - ANSWER 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 - ANSWER 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 - ANSWER A strategy where a business charges a
premium price when the product is first launched to maximise revenue per unit
Pricing strategy - penetration pricing - ANSWER 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 - ANSWER A strategy where a business sets flexible
prices for products based on current market demand
Recruitment - ANSWER The process of inviting people to apply for a vacancy in a
business
Selection - ANSWER The process of choosing the appropriate new member of staff
Training - ANSWER The process of developing skills in workers through specifically
design training programmes
Internal recruitment - ANSWER Recruiting for a vacancy from within the business
External recruitment - ANSWER Recruiting for a vacancy from outside of the business
Induction training - ANSWER The training programme designed for when an employee
is new to a business
On-the-job training - ANSWER Training that is carried out at the place of work by
carrying out the responsibilities of the job
Off-the-job training - ANSWER Training that is carried out away from the place of work,
such as through a lecture or college course
EXAM QUESTIONS AND ANSWERS 100%
CORRECT!!
, Pricing strategy - ANSWER 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 - ANSWER 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 - ANSWER A strategy where a business charges a
premium price when the product is first launched to maximise revenue per unit
Pricing strategy - penetration pricing - ANSWER 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 - ANSWER A strategy where a business sets flexible
prices for products based on current market demand
Recruitment - ANSWER The process of inviting people to apply for a vacancy in a
business
Selection - ANSWER The process of choosing the appropriate new member of staff
Training - ANSWER The process of developing skills in workers through specifically
design training programmes
Internal recruitment - ANSWER Recruiting for a vacancy from within the business
External recruitment - ANSWER Recruiting for a vacancy from outside of the business
Induction training - ANSWER The training programme designed for when an employee
is new to a business
On-the-job training - ANSWER Training that is carried out at the place of work by
carrying out the responsibilities of the job
Off-the-job training - ANSWER Training that is carried out away from the place of work,
such as through a lecture or college course
