AS unit 1 Business Studies Questionnaire

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

1. Define a Paternalistic 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
1 of 20

Other questions in this quiz

2. Define what is meant by Price Skimming

  • 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.
  • this strategy uses a low price to enter the market & gain market share
  • Some firms set their prices the same as their competitors

3. 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

4. Why do firms use break even analysis

  • to calculate in advance the level of output needed to break even
  • to measure profit
  • to measure a loss over a period of time

5. What is meant by psychological Pricing

  • This occurs when different prices are charged for the same good or service
  • 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.

Comments

No comments have yet been made

Similar Business Studies resources:

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