Edexcel GCSE: Business Studies Quiz- III

A train journey is an example of a service because it is an intangible offering provided by a business to consumers. Unlike physical goods, a train journey cannot be held or possessed, but it is an experience or action that is provided to fulfill a specific need or desire of the consumer.

The bakery uses wheat to produce bread and sugar to produce biscuits. These two items are examples of commodities that are directly used in the production process of bakery products. The rent of premises, electricity used by ovens, and wages paid to workers are not commodities but rather expenses or costs associated with running the bakery.

The correct answer is primary research. Primary research refers to the collection of original data directly from the source, in this case, from potential customers through the questionnaire. Lisa conducted her own research to gather information specifically for her business idea, making it primary research. This is different from secondary research, which involves using existing data and sources.

A mindmap is a diagram that can be used to record words and ideas connected to a central word or idea. It is a visual representation that allows for the exploration and organization of thoughts and concepts. This tool is often used by individuals who need to think creatively and make connections between ideas, making it a suitable choice for Martin Hudson to use in improving his business.

Fulfilling customer orders accurately is likely to be an effective method for delivering high levels of customer satisfaction because it ensures that customers receive exactly what they ordered, leading to a positive experience. Introducing a 24-hour customer help-line is also likely to be effective as it provides round-the-clock support to customers, addressing their concerns and resolving any issues they may have, thereby enhancing their satisfaction.

To calculate the net cash flow for April to October, we need to add up the cash flows for each month. Looking at the chart, we can see that the cash flows for each month are as follows: April: £5,000, May: £7,000, June: £8,000, July: £6,000, August: £4,000, September: £2,000, October: -£3,000. Adding these values together, we get £19,000. Therefore, the net cash flow for April to October is £19,000.

An increase in interest rates can lead to lower revenue in July compared to the forecast figure because it can discourage consumer spending and borrowing. Higher interest rates make it more expensive for consumers to take out loans or use credit cards, which can reduce their purchasing power. This can result in decreased sales and revenue for businesses, as consumers may choose to save their money or reduce their spending.

Based on the given table, the most important factor in the decision to choose a gardening service is the quality of the work, which accounts for 41% of the responses. Therefore, Lisa should focus on improving the quality of her gardening service in order to attract more customers.

The business makes a profit of £11,000 in this month. To calculate the profit, we need to subtract the total costs from the revenue. The total costs include the cost of raw materials imported from the USA (£10,000), the cost of raw materials from the UK (£7,000), and the fixed costs (£11,000), which sum up to £28,000. Subtracting this from the revenue of £39,000 gives us a profit of £11,000.

The worsening in cash flow position of the business during this time could be due to the increased spending on stocks of ink cartridges and printers by PrintZone, as this would result in higher expenses and potentially lower cash reserves. Additionally, the increase in PrintZone's monthly advertising costs from £800 to £1400 could also contribute to the worsening cash flow position, as it would mean higher expenses and potentially lower profits.

Starting a business as a franchise rather than as a sole trader can have several advantages for an individual. Firstly, a franchise is likely to be an established business, which means that it already has a recognized brand, customer base, and proven business model. This can reduce the risks and uncertainties associated with starting a business from scratch. Secondly, the franchisor provides continued help and support to the franchisee, which can include training, marketing assistance, and ongoing guidance. This support can help the franchisee navigate challenges and increase their chances of success. Lastly, the franchisee can benefit from national advertising of the franchise, which can help attract customers and increase brand awareness.

PrintZone Ltd could improve its cash flow position by increasing revenue through improving sales. This could be achieved by implementing effective marketing strategies, targeting new customer segments, or improving customer retention. Additionally, negotiating lower prices with suppliers could help reduce costs and improve the company's cash flow position. By securing better pricing terms, PrintZone Ltd can increase its profit margin and have more cash available for other business needs.

The change in exchange rate from £1 = $1.50 to £1 = $1.60 means that the business will now have to spend less in pounds to import the same amount of raw materials from the USA. This will result in a decrease in costs, increasing the profit level. The decrease in costs can be calculated by subtracting the difference in the cost of raw materials imported from the USA at the two exchange rates (£10,000 - £7,000 = £3,000) and converting it to dollars using the new exchange rate (£3,000 * $1.60 = $4,800). Converting the $4,800 back to pounds using the original exchange rate (£4,800 / $1.50 = £3,200) gives us the increase in profit (£7,000 - £3,200 = £3,800). This increase in profit is equal to £625, which is the correct answer.

When Timbles increases the price of its product, it can potentially lead to an increase in total revenue because the higher price per product can offset any decrease in sales volume. Additionally, higher prices can result in higher profit for every product sold, as long as the increase in price is greater than the increase in costs. Therefore, the two possible effects of Timbles' decision to increase prices are increased total revenue and higher profit for every product sold.

Lisa can achieve high levels of added value by introducing a loyalty scheme to give regular customers price discounts. This will incentivize customers to continue using her services and build customer loyalty. Additionally, by visiting every customer 48 hours after work completed to take feedback, Lisa can gather valuable information about customer satisfaction and make improvements to her business based on their feedback. These strategies will help Lisa differentiate her business and provide added value to her customers.

National Insurance Contributions, Value Added Tax, and Corporation Tax are all taxes that businesses like Buckingham Ltd may have to pay. National Insurance Contributions are payments made by both employers and employees to fund state benefits such as the state pension and healthcare. Value Added Tax is a tax on the value added at each stage of production and distribution. Corporation Tax is a tax on the profits of limited companies. These taxes are all relevant to businesses and can have an impact on their financial performance.

Three conclusions that can be drawn from the chart are: actual revenue fell by more than 10% between June and July, the fall in profit between June and July was most likely caused by a fall in sales, and the forecast profit for the period April to July was £24,000.

From the data provided in Table 3 and Figure 1, Lisa can draw the following conclusions:
1. There is 100% more single pensioners than pensioner couples who are interested in Lisa's business.
2. Her main two market segments are couples with children and single pensioners.
3. More than half of the people prefer something other than Service 1.

A downturn in the business cycle can lead to lower fixed costs due to lower interest rates. This is because during an economic downturn, central banks often lower interest rates to stimulate borrowing and spending, which can result in lower interest payments for businesses.

Additionally, a downturn in the business cycle can result in lower demand due to business closures. When the economy is struggling, businesses may be forced to close down due to lack of customers or financial difficulties, leading to a decrease in overall demand for goods and services.

Furthermore, a downturn in the business cycle can lead to lower prices on goods bought from suppliers. As businesses experience a decrease in demand, they may negotiate lower prices with their suppliers in order to reduce costs and maintain profitability.