IGCSE Business Studies 0450
Questions and Answers
- Maslow (6) - ANSWER-Hierarchy of needs: psychological needs, health and safety,
social needs, esteem (recognition), self-actualization (promoted)
Accuracy of market research data - ANSWER-Primary: 1. well-phrased 2. carefully
drawn up results 3. correct sample selected 4. size of sample
Added value - ANSWER-Selling price - cost of making products
Adv. and disadv. of entering new markets abroad - ANSWER-+ increase sales +
increase brand image + spread risks - unfamiliar culture - increase transport costs -
exchange rate problems - import restrictions
Advertising process (5) - ANSWER-1. set objectives 2. select budget 3. plan for
advertisement to attract who 4. choose advertising media 5. evaluate effectiveness
Agent - ANSWER-A person/business appointed to help the producer to deal with sales
and distributions when in a foreign country
Aims of promotion (6) - ANSWER-1. inform the customers about product 2. inform
people about issues (government) 3. create brand image 4. improve company image 5.
compete with competitors 6. increase sales
Annual general meeting - ANSWER-An annual meeting held for shareholders of plc
Autocratic leadership - ANSWER-Type of leadership which the managers assign
employees specific tasks to do and they have no involvement in decisions
Brand image - ANSWER-An image or identity a product has which gives it is own
personality and distinguishes it from it competitors' brands
Brand loyalty - ANSWER-When the consumers keep buying products from the same
brand
Brand name - ANSWER-A unique name which distinguishes the product from other
brands
Business objective (6) - ANSWER-1. Make profit 2. Survival in industry 3. Increase
market share 4. Pay back to shareholders 5. Growth 6. Service to community
Business plan - ANSWER-A plan which outlines a business' objectives, name of
organization, finance and owners of business
, Capital - ANSWER-Money (invested into a business)
Capital employed - ANSWER-Amount of money invested into a business
Chain of command - ANSWER-A structure which outlines the path of communication
Choosing appropriate communication method (7) - ANSWER-1. Who is sending 2. Who
is receiving 3. Content of message 4. Speed 5. Costs 6. Importance of response 7.
Importance of written record
Communication methods (3) - ANSWER-1. Verbal a. Meeting, talks, video conferencing
2. Written a. Emails, reports, memos, business letters, notice, text 3. Visual a. PPT
presentation, video clips, posters, photo
Comparing the size of businesses (4) - ANSWER-Number of employees, output, sales
and capital employed
Competitive pricing - ANSWER-When price of the product is set very close to their
competitors' prices
Conglomeration integration - ANSWER-When a business merge with another of a
different industry
Contract of employment - ANSWER-A contract which shows that the employee is
working for a company, legal agreement also listing the rights and responsibilities of
workers
Cost plus pricing - ANSWER-Cost of making product + profit markup = cost plus price
De-industrialization - ANSWER-Decline of importance for secondary sector
Decline - ANSWER-When the product life is declining, demand drops, sales decreases
Delegation - ANSWER-Giving a task to a subordinate + less work on shoulder - work
may not be done well + subordinate feels trusted - subordinate may do a better job
Democratic leadership - ANSWER-Type of leadership which employees are involved in
decision making
Development - ANSWER-When the product is first produced and is developed to
improve its qualities as well as do market research and launch into small markets to test
product
Distribution channels - ANSWER-The path of how products get from the manufacturer
to the hands of consumers
Questions and Answers
- Maslow (6) - ANSWER-Hierarchy of needs: psychological needs, health and safety,
social needs, esteem (recognition), self-actualization (promoted)
Accuracy of market research data - ANSWER-Primary: 1. well-phrased 2. carefully
drawn up results 3. correct sample selected 4. size of sample
Added value - ANSWER-Selling price - cost of making products
Adv. and disadv. of entering new markets abroad - ANSWER-+ increase sales +
increase brand image + spread risks - unfamiliar culture - increase transport costs -
exchange rate problems - import restrictions
Advertising process (5) - ANSWER-1. set objectives 2. select budget 3. plan for
advertisement to attract who 4. choose advertising media 5. evaluate effectiveness
Agent - ANSWER-A person/business appointed to help the producer to deal with sales
and distributions when in a foreign country
Aims of promotion (6) - ANSWER-1. inform the customers about product 2. inform
people about issues (government) 3. create brand image 4. improve company image 5.
compete with competitors 6. increase sales
Annual general meeting - ANSWER-An annual meeting held for shareholders of plc
Autocratic leadership - ANSWER-Type of leadership which the managers assign
employees specific tasks to do and they have no involvement in decisions
Brand image - ANSWER-An image or identity a product has which gives it is own
personality and distinguishes it from it competitors' brands
Brand loyalty - ANSWER-When the consumers keep buying products from the same
brand
Brand name - ANSWER-A unique name which distinguishes the product from other
brands
Business objective (6) - ANSWER-1. Make profit 2. Survival in industry 3. Increase
market share 4. Pay back to shareholders 5. Growth 6. Service to community
Business plan - ANSWER-A plan which outlines a business' objectives, name of
organization, finance and owners of business
, Capital - ANSWER-Money (invested into a business)
Capital employed - ANSWER-Amount of money invested into a business
Chain of command - ANSWER-A structure which outlines the path of communication
Choosing appropriate communication method (7) - ANSWER-1. Who is sending 2. Who
is receiving 3. Content of message 4. Speed 5. Costs 6. Importance of response 7.
Importance of written record
Communication methods (3) - ANSWER-1. Verbal a. Meeting, talks, video conferencing
2. Written a. Emails, reports, memos, business letters, notice, text 3. Visual a. PPT
presentation, video clips, posters, photo
Comparing the size of businesses (4) - ANSWER-Number of employees, output, sales
and capital employed
Competitive pricing - ANSWER-When price of the product is set very close to their
competitors' prices
Conglomeration integration - ANSWER-When a business merge with another of a
different industry
Contract of employment - ANSWER-A contract which shows that the employee is
working for a company, legal agreement also listing the rights and responsibilities of
workers
Cost plus pricing - ANSWER-Cost of making product + profit markup = cost plus price
De-industrialization - ANSWER-Decline of importance for secondary sector
Decline - ANSWER-When the product life is declining, demand drops, sales decreases
Delegation - ANSWER-Giving a task to a subordinate + less work on shoulder - work
may not be done well + subordinate feels trusted - subordinate may do a better job
Democratic leadership - ANSWER-Type of leadership which employees are involved in
decision making
Development - ANSWER-When the product is first produced and is developed to
improve its qualities as well as do market research and launch into small markets to test
product
Distribution channels - ANSWER-The path of how products get from the manufacturer
to the hands of consumers
