Revision Questions for BUSS2
1.
Identify two ways to boost a firm’s cash flow. (2)
2.
State the labels for a) the vertical and b) the horizontal axes of the Boston
Matrix. (2)
3.
Explain why a firm with effective Quality Assurance wouldn’t need Quality Control. (3)
4.
A firm has fixed costs of £8,000 and variable costs of £3 per unit. When it
puts its price up from £5 to £6, sales fall from 20,000 to 18,000 units.
Calculate the change in profit. (4)
5.
Outline two reasons why a firm with a price inelastic product might cut its
price. (4)
6.
Using Maslow’s theory, explain the impact on staff of organising a social event.
(3)
7.
A producer of car tyres has a maximum capacity of 2,000 tyres a day. Current
demand has slipped to 1,400 tyres per day, though output is being held at 1,500
units. Daily fixed costs amount to £12,000.
7a)
What’s the current capacity utilisation? (2)
7b)
What are the fixed costs per tyre at full capacity and at the current output
level. (3)
8.
Give the meaning of the term delegation. (2)
9.
Outline 2 possible extension strategies for a shampoo with sales that are no
longer bubbly. (4)
10.
BJ Ltd estimates that its ‘Dralux’ brand has a price elasticity of -0.5.
Current sales are 5,000 units a week at £5 each. Now it’s planning to increase
the price of Dralux by 20%. Calculate the impact on total revenue. (4)
11.
Explain why a new chocolate brand might be priced using a market skimming
strategy. (3)
12.
Identify two non-marketing ways to boost a company’s market competitiveness.
(2)
13.
Explain the meaning of the term ‘negative revenue variance’ (2)
