| Question | Answer |
| 1. Give two examples of secondary sector businesses, explaining why they belong in this sector. | Two manufacturing/construction companies with explanation.
|
2. Compare and contrast private limited companies with public limited companies. | Private cannot sell shares on a stock exchange; probably more limited access to finance; Original owners probably still own majority of shares; More difficult to sell shares; Lower share price risk; in both shareholders have limited liability and separate legal identity.
| 3. Distinguish between a mission statement and a vision statement and provide a hypothetical example of each. | Mission statement summarises what an organisation does and wants to achieve e.g. to provide a supportive, caring ion wants to be and effective learning environment. Vision statement outlines where an organisation wants to be in the future e.g. To be Beijing's largest provider of IB education.
| 4. Explain the term "SMART" objectives and write one of your own relating to your studies this year. | Specific, measurable, achievable, realistic and relevant, time-specific. e.g. To complete at least 10 hours of CAS each week.
| 5. Explain the term "Corporate Social Responsibility" and provide at least one real-life example. | CSR - where a company complies with (or sometimes beyond that) the spirit of ethics and social norms.
| 6. Explain the term "Economies of scale" and give three examples. | Reduction in unit costs due to an increase in output e.g. purchasing economies, financial economies, managerial economies, technical economies, marketing economies.
| 7. Distinguish between vertical and horizontal integration and identify at least two other ways firms can achieve growth. | Vertical integration - integrating with a business in the same industry but in a different production stage. Horizontal - integrating with a business in the same industry and in the same production stage. Others - merger, franchise, conglomerate, joint venture.
| 8. Draw the Ansoff matrix. | Market penetration; Market development; Product development; Diversification.
| 9. Analyse the advantages and disadvantages of multinational companies operating in China. | Adv: More products/wider consumer choice; Tax revenues; Employment opportunities; Increased GDP; Disadv; Local firms may suffer; Pollution; Exploitation; Depletion f natural resources; Profits returned to home country.
| 10. Compare and contrast an autocratic leader with a democratic leader. | Autocratic - one-way communication, top down, no shared decision-making.
| 11. Explain Herzberg's two-factor theory of motvation. | Outline of motivators and hygiene factors.
| 12. Explain and give two examples of "fringe benefits." | Non-cash benefits at work e.g. company car, free meals and accommodation.
| 13. Outline Porter's five forces analysis. | Threat of entry; Power of buyers; Power of suppliers; Threat of substitutes; Competition.
| 14. What is market segmentation? | Dividing a market into different segments according to age, gender etc and identifying target groups for goods or services produced.
| 15. Draw and provide an explanation of the product life cycle. | development, launch, growth, maturity, decline.
| 16. Explain and give two examples of below the line promotion. | Incentives to achieve increases in sales volume such as loyalty schemes and BOGOF.
| 17. Draw the Boston matrix and explain each component. | Cash cow - ; long-established product in mature market that is profitable; low growth/high market share. Star - growing market/high share. Problem child - low share/high market growth. Dog - low growth/low share.
| 18. Name and explain two types of branding. | Family, Individual; Corporate; Own-label; Manufacturers. |
