AQA A-level Business Paper 2 Exam Study Questions with Correct Answers Already Graded A+

AQA A-level Business Paper 2 Exam Study Questions with Correct Answers Already Graded A+ 1. Extrapolation - ANSWER the action of estimating or concluding something by assuming that existing trends will continue. 2. Market share calculation - ANSWER Sales of business / total sales in market x 100 3. Market segmentation - ANSWER splitting consumers into groups depending on certain characteristics (age, gender, lifestyle) 4. Benefits of market segmentation - ANSWER - better understanding of customer needs - better targeting of promotional messages - targeted promotion may be a way to save money as well as being more effective 5. Elastic goods of demand - ANSWER - 1 or more value - demand is more responsive to change in price - luxury products such as cars, jeweler 6. Inelastic goods of demand - ANSWER - 0-1 value - demand is less responsive to change in price - necessities such as milk, fuel, rent 7. Inelastic demand effect on businesses - ANSWER allows business to increase prices of goods 8. what is employee engagement - ANSWER the extent to which employees feel passionate about their jobs, and are committed to the organization 9. Advantages of Secondary Research - ANSWER -cheap for small businesses -reliable as its based on expert analysis -large sample size 10. Advantages of Digital Marketing - ANSWER -easy to target preferred market segment, e.g through use of cookies -lower cost than primary research -easy to measure the reach of promotion (analytics) -likely to get feedback on customer experiences 11. labor turnover - ANSWER proportion of employees that leave a business in a given year 12. why high labor turnover can be problematic - ANSWER - increasing costs associated with recruitment and selection and training as staff leave and need replacing, e.g. google has spent $1 billion on employee training - skills shortages hard to replace - loss of corporate knowledge and loss of contact with clients - disruption to teams and social aspects of work (Maslow - employees like working in a team or clients feel loss of customer engagement in service) 13. why high labor turnover can be less of an issue - ANSWER - bringing in new ideas to a business; construction has LTR of 63% so innovative ideas can be brought in - LT irrelevant measure of some businesses as always high due to seasonality; John Lewis hiring more staff for Christmas period - many businesses with high LT have low-skilled jobs; jobs students fill in, such as hospitality 14. Example of Positive Correlation in a Business - ANSWER higher demand = more sales higher temperature = more ice cream sales 15. Mass Customization - ANSWER Mass production of products with many standardized components but tailored to certain customer needs 16. Producing to Order - ANSWER Production only begins when an order has been received 17. how a business can have a high employee engagement - ANSWER - focus on quality - achieved through employee/customer interaction - rewarding for staff and help staff be engaged - high levels of service supported through feedback, a culture that may increase employee engagement - having employee engagement as a priority, shows an inclusive culture/soft HR approach - motivate staff, improve productivity - more profitable 18. 'Just in time' approach to business' profits - ANSWER - JIT involves holding minimal levels of inventory - can be more efficient; less warehouse + security costs. can help have low costs to undercut competitors. greater efficiency may help margins and overall profits. - JIT means company is not left with inventory it may not sell; updates and develops new models regularly so won't hold large amounts of inventory which could go out of date - less wastage, higher profits. - could have production issues if problems with supplies; delivery delays due to transport problems - less sales, less profits. 19. Taylor's motivation theory - ANSWER this approach assumed people were motivated by money. 20. scientific management - figure out the most efficient way to do a job, and make sure every worker did it that way. ensure each task was being done by the right worker. why Taylor's motivation theory is a good way to for businesses to motivate employees - ANSWER - whether people are motivated by money - stage of Maslow's hierarchy of needs (basic physiological, food, water, shelter, v higher level self-actualization needs, meeting potential by taking responsibility to develop skills. - charitable companies, e.g. UN workers won't be motivated by money and can't paid by piece rate - whether a business can link payment to output - is a piece rate system feasible and desirable, with supervisor role too. doing same task can be very boring and demotivating. - start-up businesses very motivated by money, e.g. when a coffee shop first opens such as first Starbucks 21. Elastic demand effect on businesses - ANSWER allows business to decrease price of goods to increase demand