AS unit 1 Business Studies Questionnaire

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  • Created by: jacob
  • Created on: 23-12-13 19:40

1. What is a margin of safety

  • where sales can increase from their current level
  • the amount by which sales can fall from their current level before reaching the break-even point
  • A margin used to keep profit safe
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Other questions in this quiz

2. What is a definition of leadership

  • being able to manage employees effectively
  • the process of influencing others to work willing towards an organisation's goals
  • being able to manage a team successfully to complete a task

3. A cost that does change with output

  • Total Costs
  • Fixed Cost
  • Variable Costs
  • Overheads

4. What is meant by Predator 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.
  • This occurs when a firm sets out to destroy (or weaken) the competition through low prices
  • This occurs when a firm sets out to destroy (or weaken) the competition through low prices

5. What is meant by psychological Pricing

  • For example selling a product at £49.99 instead of £50 makes customers think of it as less than £50
  • 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.
  • This occurs when different prices are charged for the same good or service

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