GCSE Edexcel: Business Studies Quiz- III

Primary market research refers to the collection of original data directly from the target audience for a specific purpose. In this case, conducting a survey of customers would be an example of primary market research. This method allows businesses to gather firsthand information about customers' preferences, opinions, and behaviors, which can be used to make informed decisions and improve products or services. Government statistics, newspaper articles, and internet research, on the other hand, are sources of secondary market research as they involve using existing data or information that has already been collected by others.

The key features of enterprise include being prepared to take risks and having a willingness to take on new ventures. These features are essential for any business to succeed and grow. By being prepared to take risks, entrepreneurs are willing to step out of their comfort zones and make bold decisions that can potentially lead to success. Similarly, having a willingness to take on new ventures demonstrates the ability to adapt to changing market conditions and explore new opportunities for growth. These features are crucial for the success and growth of any enterprise.

Based on the information provided, the market map shows that there is a gap in the market for a business that provides low price/fashion hairdressing services. This means that there is a demand for affordable hairdressing services that are trendy and fashionable. Mark's specialty in creating styles with a high degree of skill that adds significant value may not align with this particular gap in the market.

An example of a calculated risk for Mark would be the 40% chance of the business surviving the first year. This means that Mark is aware that there is a possibility of his business failing, but he is willing to take that risk and proceed with his venture. He has likely assessed the potential challenges and uncertainties involved in starting a business and has made a decision based on weighing the potential rewards against the potential risks.

Unlimited liability means that the sole trader is personally responsible for all debts and liabilities of the business. This means that if the business fails or incurs significant debts, the sole trader's personal assets, such as their house or car, can be seized to repay those debts. This poses a significant risk to the sole trader as they could potentially lose their personal possessions if the business fails.

Mark is considering different sources of finance to start his business. Personal savings would be a suitable source of finance for Mark as it involves using his own money to fund the business. This is a common and often preferred option for entrepreneurs as it allows them to have full control and ownership of the business. Additionally, a bank loan would also be a suitable source of finance for Mark as it provides him with the necessary funds to start his business. Banks often provide loans to small businesses, and Mark can use this loan to cover startup costs and initial expenses. Selling the business's assets, issuing shares to new shareholders, and retained profit are not mentioned as appropriate sources of finance for Mark.

Offering late-night opening appointments and providing free refreshments and drinks for customers are sources of added value for Mark's business. Late-night opening appointments cater to customers who may have busy schedules during regular business hours, providing convenience and flexibility. Providing free refreshments and drinks enhances the customer experience, making them feel valued and cared for during their visit. Both of these practices differentiate Mark's business from competitors and contribute to customer satisfaction and loyalty.

To calculate the total costs, we need to consider both the fixed costs and the variable costs. The fixed costs for Hancock's are given as £500 per month. The variable cost per pot is £2, and the number of pots produced and sold is 150. Therefore, the variable costs for the month would be £2 x 150 = £300. To find the total costs, we add the fixed costs and the variable costs: £500 + £300 = £800. Therefore, the correct answer is £800.

The three pieces of information that would break employment legislation are:
1) No wheelchair users need apply - this is discriminatory against individuals with disabilities.
2) Must be aged between 18 and 20 - this is age discrimination as it excludes individuals who are older than 20.
3) Male print designer - this is gender discrimination as it specifies a preference for male candidates.

Operating a business as a franchise can have two possible disadvantages. Firstly, the cost of the initial investment can be high, as franchisees are required to pay fees and royalties to the franchise owner. This can be a significant financial burden for small business owners. Secondly, franchising can limit the freedom of the owner in making decisions. Franchisees must adhere to the guidelines and standards set by the franchise owner, which can restrict their autonomy and ability to make independent choices for their business.

Buying cheaper raw materials will reduce the cost of production, leading to higher profit margins. Increasing the sales price of an average pot will directly increase revenue per unit sold, also contributing to higher profits. Relocating to cheaper premises will reduce overhead expenses, further increasing profitability.

Mark's skills would be most suited to sector B of the market map.

James Grant was successful because he has experience of specific software, Graphix 2302, which is likely relevant to the job requirements. Additionally, his positive attitude towards the specific job, as indicated by his statement of being a "people person" and liking to work with others, likely impressed the employer and contributed to his success.

Marcus used deliberate creativity to develop his ideas for the business. Deliberate creativity involves brainstorming business ideas and drawing lists to compare options. These techniques help in generating and evaluating different ideas, allowing Marcus to come up with innovative and unique business concepts. Starting a business which provides a service, producing a cash flow forecast, and preparing a business plan are not mentioned as techniques of deliberate creativity in the given context.

The change in the exchange rate from £1 = $2 to £1 = $1.70 means that Marcus will have to spend more money to buy the toy cars from the USA. This will increase the costs of buying the toy cars for his business. Additionally, since Marcus decided to keep the prices he charged his customers the same, he will be making lower profits on each sale due to the decrease in the exchange rate.

Marcus will have to pay income tax and national insurance contributions in the course of running his business. Income tax is a tax on the profits or income generated by the business, while national insurance contributions are social security payments made by both the employer and employee to fund various benefits and services. Corporation tax, distribution tax, and labour tax are not mentioned as taxes that Marcus will have to pay.

The rising price of cocoa suggests that Chocolicious is facing increased production costs. To address this, the company can consider two changes to its marketing mix. Firstly, contacting supermarkets to seek new retailers for its products can help expand its distribution network and potentially increase sales. This can help offset the higher production costs. Secondly, using cheaper ingredients in the product can help reduce costs without compromising too much on quality. This can help maintain profitability in the face of rising cocoa prices.

The rise in price of cocoa can be explained by three factors. Firstly, news reports suggesting some health benefits from cocoa may have increased the demand for cocoa as consumers become more interested in consuming cocoa-based products. Secondly, poor weather leading to a poor harvest of cocoa can result in a decrease in supply, causing the price to rise. Lastly, higher demand for cocoa by chocolate manufacturers, who use cocoa as the main ingredient in their products, can also contribute to the increase in price.

The most likely explanations for the change in revenue at Chocolicious are a downturn in the business cycle and a fall in sales. A downturn in the business cycle refers to a period of economic decline, which can lead to reduced consumer spending and lower revenue for businesses. A fall in sales directly affects revenue as it indicates a decrease in the number of products or services sold. Both factors can contribute to a decrease in revenue for Chocolicious.