Other questions in this quiz

2. What is meant by Cost-plus Pricing

  • This is the method of pricing which considers the toal cost per unit and then adds on a percentage to arrive at a final price.
  • For example selling a product at £49.99 instead of £50 makes customers think of it as less than £50

3. Define what is meant by Penetration Pricing

  • this strategy uses a low price to enter the market & gain market share
  • this strategy uses a high price to enter the market. Even though the price is high, some people may still be eager to try a new product once sales from the group of people disappear the price of the product can decrease to attract new customers.

4. Define a Democratic Leader

  • behave rather as a parent might in making family decisions. They consult at every level and explain their reasons, but take the final decision themselves.
  • guide rather than dictate, consulting widely and encouraging everyone to participate in the decision making process.
  • take top-down decisions without consulting employees to find out their views. they may provide very little information on the reasons for the decision

5. Which one of these is a non profit motive for becoming an entrepreneur

  • getting respect
  • Being self satisfied
  • making profit


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all unit 1 resources »