8/3/2019 Yr12 BS Exam

1/6

Name AS business test

1. Tesco plc, owned by British entrepreneur Jack Cohen, has a large workforce made up ofemployees ranging from full-time permanent to part time seasonal staff. Workers feel that Jacktakes the time to listen to their views and often allows staff to vote on decisions.

Which of the following management styles would most apply to Jack Cohen?

A Democratic

B PaternalisticC AutocraticD Laissez Faire

Answer (1)

(b) Explain why this answer is correct. (3)

2. Burger King conducts secondary research in order to assist in improving its market position as

one of the leading fast food restaurants.Which of the following is not an example of secondary research?

A In-depth interviews with customerB Using market intelligence reportsC Information from the published records of McDonaldsD Articles in the weekly grocer magazine

Answer (1)

(b) Explain why this answer is correct. (3)

8/3/2019 Yr12 BS Exam

2/6

Name AS business test

3. In January 2008 Sky TV introduced a 16 promotional package which offered satellite TV,broadband and free evening and weekend telephone calls to new customers.

Which of the following is most likely to happen as a result of the above

A An increase in the price offered by Virgin TV for their satellite packageB A decrease in the demand for the Radio Times (TV guide magazine)

CA decrease in demand for Virgins satellite TVD A decrease in the price of recordable DVD players

Answer (1)

(b) Explain why this answer is correct. (3)

4. The retail price of Apple iPods fell, on average, by 50% between 2007 and 2009.

The most likely explanation for this was:

A A rise in consumer incomesB The rate of tax on profits was increasedC Price of substitutes fellD Productivity of workers manufacturing iPods fell

Answer (1)

(b) Explain why this answer is correct. (3)

8/3/2019 Yr12 BS Exam

3/6

Name AS business test

5. Strawberry.net serve different segments of the market for cosmetic products.Which of the following is not a market segment for the above businesses?

A Makeup artistsB Beauticians

C Boots storesD Teenage girls

Answer (1)

(b) Explain why this answer is correct. (3)

6. Asda used to enjoy a competitive advantage over its main rivals Tesco and Sainsburys bysupplying free home delivery to its customers.

Which of the following is least likely to be a factor which directly affects the supply of a product orservice?

A Natural disastersB Fashion, tastes and preferencesC Employee wage costsD Weather

Answer (1)

(b) Explain why this answer is correct. (3)

8/3/2019 Yr12 BS Exam

4/6

Name AS business test

7. The late Anita Roddick, the founder of The Body Shop, showed the typicalcharacteristics of a successful entrepreneur.

Which one of the following is a least likely characteristic of a successful entrepreneur?

A Risk averseB Flexibility/adaptability

C Self-confidenceD Resilience

Answer (1)

(b) Explain why this answer is correct. (3)

8. In April 2006, The Daily Telegraph reported that Polish food shops and restaurants arecontinuing to open up and thrive on Britains high streets. This trend continued to 2009.

The establishment of Polish food shops and restaurants in Britain is evidence of

(1)A market mapping.B niche marketing.C adding value.D market sampling.

Answer (1)

(b) Explain why this answer is correct. (3)

8/3/2019 Yr12 BS Exam

5/6

Name AS business test

9. When Sue Wragg opened up her hair salon in the Mailbox shopping mall inBirmingham, she considered a number of ways to add value.

Which one of the following is least likely to add value for Sues clients?(1)

A Creating a website for supporting clients on-line bookingsB Furnishing the waiting area with leather sofasC Increasing prices

D Providing magazines and refreshments for clients

Answer (1)

(b) Explain why this answer is correct. (3)

10. Before Sunny Delight mass produced its soft drinks, it underwent product trials in

Carlisle, a town in the north of England.Which one of the following might be regarded as the most likely reason for a business like

Sunny Delight to undertake product trials?(1)

A An increase in interest ratesB To segment the marketC To assess the possible demand for a productD To reduce liability

Answer (1)

(b) Explain why this answer is correct. (3)

8/3/2019 Yr12 BS Exam

6/6

Name AS business test

11.In 2004, Paul Lindley set up a childrens healthy drinks and snacks company known asEllas Kitchen. Paul spent the first 18 months developing and positioning his product.

Which one of the following would Paul have been most likely to use when positioningEllas Kitchen products?

(1)A Transport cost informationB Cash-flow forecasting

CA knowledge of competitors productsD Business development grants from the local council

Answer (1)

(b) Explain why this answer is correct. (3)

Define the following key terms, each correct answer is worth 1 point1. Competitive advantage

2. Sampling

3. Quantitative data

4. Ethical stance