2022

• 1 (a) Which one of the following is an example of a variable cost?(1)Select one answer.

  A InsuranceB PackagingC RentD Salaries

  ✅ Answer: B Packaging
• 1 (b) Which one of the following could be used to identify a market segment?(1)Select one answer.

  A DemographicsB InflationC Marketing mixD Revenue

  ✅ Answer: A Demographics
• 1 (c) Explain one risk for an entrepreneur when starting a new business.(3)

  ✅ Answer: One risk for an entrepreneur when starting a new business is financial loss. This is because they may invest their savings into the business and if the business fails, they could lose this money.
• 1 (d) State one reason why a business might use retained profit as a source of finance.(1)

  ✅ Answer: Because it does not need to be repaid.
• 1 (e) State one feature of a business objective.(1)

  ✅ Answer: It is specific and measurable.
• 2 (a) Which two of the following are examples of customer needs?(2)Select two answers.

  A PriceB ProfitC QualityD RiskE Taxation

  ✅ Answer: A Price, C Quality
• 2 (b) Which one of the following is a benefit of market segmentation?(1)Select one answer.

  A Attracts all customers in a marketB Increases product rangeC Meets the needs of target customersD Reduces fixed costs

  ✅ Answer: C Meets the needs of target customers