Edexcel GCSE: Business Studies Quiz- II

Secondary research is the type of market research that involves using existing data and information from various sources, such as the internet, to gather insights and knowledge. In this case, Gail is using the internet to gather additional information, which aligns with the concept of secondary research.

Through direct customer contact, Gail can gain market knowledge about customer spending habits, which can help her understand the purchasing patterns and preferences of her target customers. This information can guide her in making strategic decisions related to pricing, promotions, and product offerings. Additionally, direct customer contact can provide Gail with insights into the latest fashion trends that customers like. This knowledge can help her stay updated with the evolving preferences of her target market and make informed decisions regarding product assortment and inventory management.

Suppliers and managers are most likely to be in conflict with each other as a result of this decision. Suppliers may feel threatened by the loss of business and potential decrease in revenue, while managers may be focused on cost savings and efficiency. This conflict arises from the decision to switch suppliers from a local UK supplier to a German company, which can disrupt existing relationships and impact the financial interests of both parties.

The two possible objectives for someone setting up a business as a sole trader are to take all the profits and to have full control of the decisions. As a sole trader, the individual is the sole owner and has complete control over the business operations and decision-making process. Additionally, they are entitled to keep all the profits generated by the business.

When a business raises wages from £6.70 to £7.50 per hour, workers benefit from better pay, improving their morale and standard of living. However, this increases the company's operating costs, which may reduce profits. Shareholders, who are primarily interested in profit and return on investment, may oppose higher costs. This creates a potential conflict between shareholders and workers over how company funds should be allocated.

An increase in the cost of oil would lead to an increase in variable costs for the business. Oil is the main raw material used by the business, so if the cost of oil goes up, the cost of producing goods or services will also increase. This would result in higher variable costs for the business, as they would need to spend more on oil to maintain their production levels.

Stateside imported 300 baseball caps from America at a cost of $5.00 per cap. To find the cost in pounds, we need to convert the total cost from dollars to pounds. The exchange rate in July 2012 was $1.60 to £1. So, the total cost in dollars is 300 caps * $5.00 per cap = $1500.00. To convert this to pounds, we divide $1500.00 by $1.60 per £1, which gives us £937.50. Therefore, the cost to Stateside of this order is £937.50.

Age and race are subject to legislation to protect workers from discrimination. Laws such as the Age Discrimination in Employment Act (ADEA) and Title VII of the Civil Rights Act prohibit discrimination based on age and race respectively. These laws aim to ensure that individuals are not unfairly treated or denied opportunities in the workplace based on these protected characteristics.

A bank loan is an example of long-term finance for a sole trader because it involves borrowing a specific amount of money from a bank and repaying it over an extended period of time, usually with interest. Unlike an overdraft or trade credit, which are typically short-term financing options, a bank loan provides the sole trader with a larger sum of money that can be used for long-term investments or business expansion. Share capital, on the other hand, refers to funds raised by issuing shares to investors, which is not a form of borrowing and therefore not considered long-term finance.

A stakeholder is defined as any individual or group with an interest in the success of a business. This includes not only shareholders, but also employees, customers, suppliers, and the local community. Stakeholders have the ability to influence the decisions and outcomes of a business, making their interests and opinions important to consider in strategic planning and decision-making processes.

The three sources of added value for a business such as Stateside could be:
1. Only UK retailer selling official US baseball team kit: This uniqueness and exclusivity of selling official US baseball team kits can attract customers and create a competitive advantage.
2. Ensuring high quality products: Providing products of superior quality can differentiate the business from competitors and enhance customer satisfaction.
3. Creating a well-known brand name: Building a strong brand reputation can increase customer loyalty, trust, and willingness to pay a premium for the products.

The owner of KooKoo might introduce new items for sale to attract more customers and increase sales. Offering a 'buy one get one free' offer on drinks can also be an effective strategy to attract customers and encourage them to try the cafe's offerings. Charging lower prices than the main local competitor can help KooKoo gain a competitive advantage and attract price-sensitive customers. These changes to the marketing mix can help KooKoo expand its business by increasing customer base and sales.

Procrastinating, or delaying tasks and avoiding responsibilities, is detrimental to effective management. The core functions of management include planning (setting goals and strategies), organizing (allocating resources and assigning tasks), staffing (recruiting and training employees), directing (leading and motivating employees), and controlling (monitoring performance and making adjustments).

This answer is an example of a calculated risk because it indicates that there is a possibility of profits falling in the next six months. The owner of the business is aware of this risk and can make strategic decisions or take actions to mitigate the potential negative impact on profits.

The product being seasonal can be a likely explanation for changes in revenue as it suggests that the demand for the product fluctuates based on the time of the year. A higher level of sales can also be a likely explanation as it indicates that more units of the product are being sold, leading to an increase in revenue. A successful advertising campaign can also be a likely explanation as it suggests that the marketing efforts have been effective in attracting more customers and increasing sales.

As a sole trader, Lydia Smith is personally responsible for the taxes related to her business. Income tax is the tax paid on the profits earned by the business, and National Insurance is the tax paid on the earnings of the employees. Therefore, Lydia will have to pay both income tax and National Insurance in the course of running her business.

Span of control is a key concept in organizational design that refers to the number of subordinates a manager can effectively and efficiently supervise. It determines the width and complexity of an organization's hierarchy. A wider span of control means a manager oversees more subordinates, leading to a flatter organizational structure, while a narrower span of control results in a taller hierarchy with more levels of management. The optimal span of control depends on various factors, such as the nature of the work, the skills and experience of the subordinates, and the organizational culture.

Lydia can improve the quality of customer service to differentiate Good Reads from its rivals and attract more customers. By providing excellent customer service, she can create a positive shopping experience and build customer loyalty. Additionally, offering an online ordering service can help Good Reads reach a wider audience and compete with supermarkets that offer online shopping options. This convenience can attract customers who prefer to shop online and increase sales for the business.