Business Alevel
Which of the following is a key characteristic of a sole trader business structure?
Owned and run by one individual
What does the term 'opportunity cost' refer to in business?
The loss of potential gain from other alternatives when one alternative is chosen
Which pricing strategy involves setting prices lower than competitors to attract customers?
Penetration pricing
What is the primary purpose of market segmentation?
To divide a market into smaller groups with similar needs or characteristics
What does the term 'economies of scale' mean?
A reduction in average costs as production increases
Which of the following is part of the marketing mix?
Promotion
What is the main aim of financial forecasting in business?
To predict future financial performance
What is meant by 'ethical business practice'?
Conducting business in a morally right and fair way
Which of the following is NOT a source of external finance for businesses?
Personal savings
In a SWOT analysis, what does 'W' stand for?
Weaknesses