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Which one of the following is a stage in the sales process? Select one answer - Edexcel - GCSE Business - Question 3 - 2020 - Paper 1
Question 3
Which one of the following is a stage in the sales process? Select one answer. A. Product knowledge B. Product quality C. Production D. Productivity In 2018 a bu... show full transcript
Worked Solution & Example Answer:Which one of the following is a stage in the sales process? Select one answer - Edexcel - GCSE Business - Question 3 - 2020 - Paper 1
Step 1
Step 2
Using the information in Figure 1, calculate, to 2 decimal places, the percentage of total sales revenue made by product X in 2018. You are advised to show your workings.
Answer
To calculate the percentage of total sales revenue made by product X, use the formula:
ext{Percentage} = rac{ ext{Sales Revenue of Product X}}{ ext{Total Sales Revenue}} imes 100
Assuming the sales revenue of product X is 'a' and the total sales revenue is 'b', the calculation would be:
ext{Percentage} = rac{a}{b} imes 100
This would provide the percentage result to 2 decimal places.
Step 3
Explain one drawback to a business from differentiating its product.
Answer
One drawback of differentiating a product is the potential for increased costs. When a business invests in unique features or enhancements to stand out from competitors, the costs associated with research, development, and marketing may rise significantly. This could affect the overall profitability of the business, particularly if the price cannot be raised proportionately to cover these additional costs.
Step 4
Explain one impact on a business from increased globalisation.
Answer
Increased globalisation can lead to a larger market for businesses, allowing them to expand their customer base beyond domestic borders. This potentially increases sales and revenue. However, it also brings increased competition from international players, which may impact pricing strategies and market share.
Step 5
Discuss the impact on a business of becoming a public limited company (plc).
Answer
Becoming a public limited company (plc) enables a business to raise substantial capital by issuing shares to the public. This influx of capital can be used for expansion and investment opportunities.
However, becoming a plc also subjects the business to increased regulatory scrutiny and reporting requirements, which can lead to higher operational costs. Moreover, owners may face a dilution of control as shareholders' interests become central to decision-making processes. While there are opportunities for growth, the responsibility and complexity of operating as a plc can significantly impact management practices.