A business aims to increase its sales from $160,000 to $300,000 over the next 12 months - HSC - SSCE Business Studies - Question 9 - 2008 - Paper 1
Question 9
A business aims to increase its sales from $160,000 to $300,000 over the next 12 months.
How might the business achieve this?
(A) By increasing advertising
(B) By ... show full transcript
Worked Solution & Example Answer:A business aims to increase its sales from $160,000 to $300,000 over the next 12 months - HSC - SSCE Business Studies - Question 9 - 2008 - Paper 1
Step 1
How might the business achieve this? (A)
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Answer
One effective method for the business to increase its sales is by increasing advertising. By allocating more resources to advertising, the business can enhance its visibility, attract new customers, and potentially boost sales.
Step 2
How might the business achieve this? (B)
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Answer
Decreasing owners' equity is not a viable strategy for increasing sales. In fact, reducing equity may harm the company's financial stability and reduce available resources for operating or expanding the business.
Step 3
How might the business achieve this? (C)
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Answer
Increasing mortgage repayments would likely strain the business's finances and potentially divert funds away from sales initiatives. This choice would not effectively contribute to achieving the sales goal.
Step 4
How might the business achieve this? (D)
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Answer
Decreasing the size of the research team may not directly impact sales. While it could reduce costs, it could also limit the business's ability to innovate or improve its products, which is critical for attracting customers.
