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Which term describes the sales of one business as a proportion of the total sales of the market? A Market growth B Market research C Market share D Market size Using Table 2, calculate the closing balance for May on the cash flow forecast - AQA - GCSE Business - Question 3 - 2021 - Paper 1
Question 3
Which term describes the sales of one business as a proportion of the total sales of the market? A Market growth B Market research C Market share D Market size ... show full transcript
Worked Solution & Example Answer:Which term describes the sales of one business as a proportion of the total sales of the market? A Market growth B Market research C Market share D Market size Using Table 2, calculate the closing balance for May on the cash flow forecast - AQA - GCSE Business - Question 3 - 2021 - Paper 1
Step 1
Which term describes the sales of one business as a proportion of the total sales of the market?
Answer
The correct term is Market share. Market share reflects the percentage of an industry or market's sales that a particular company controls, indicating its size relative to the total market.
Step 2
State the formula for the closing balance and show your workings.
Answer
The formula for the closing balance is:
Closing Balance = Opening Balance + Total Income - Total Expenditure
Workings: Assuming the relevant data from Table 2 provided the following:
- Opening Balance = £2,000
- Total Income = £1,500
- Total Expenditure = £1,200
Thus, applying the formula:
Closing Balance = £2,000 + £1,500 - £1,200 = £2,300
Step 3
Analyse one disadvantage using the information he gathered from his Internet research.
Answer
One significant disadvantage of using information gathered from Internet research is the potential lack of reliability and quality. Unlike primary research, secondary data may not be updated, can be biased, and might contain outdated information. This could lead Jake to make misguided decisions based on inaccurate assumptions about market trends, competitor performance, or consumer preferences, ultimately jeopardizing the success of his business plan.