Sample E edco

• Benefits of branding.

  1. it helps a business to increase sales.

  2. Branding makes products easy to recognise, which means it

  is easier to introduce new products.
• False economy - when we buy something that either costs less than other brands or seems to be better value but turns out expensive in the long run. Eg Buy a tin of beans or 400 g for 80c instead of 200 g one for 50c, but then throwing half of the contents away.
• Likely effects of an increasing global population - Damaging the environment–overuseoffossilfuels such as coal, oil and gas has reduced the quality of air and led to global warming.

  Highcostofliving–as the difference between the demand and supply increases due to overpopulation, it raises Prices of items such as food shelter in healthcare
• Factors a business should consider when deciding on the amount of stock they want to keep.

  • Storage – does the business have enough space to hold the required level of stock?
  • Type of stock – if stock is perishable, a business will only carry a limited amount of stock at a given time.
• Reasons why a business sells goods on credit:

   To increase sales.

   Competing businesses may sell on credit, if the business does not it may lose sales
• Circular flow of income describes how economic resources an income move around the economy.

  
• If a business does not manage its debtors, it runs the risk of debts not being paid, which is known as bad debts. The business will also find it difficult to pay its own expenses if it does not receive cash from debtors.
• Why a couple may be in debt in their 30s

  • Borrowing to pay wedding
• Items to save for as their family grows

   Children’s education costs

   Savings

   Life assurance

   Pension

   Creating an emergency fund.
• Factors that impact on financial planning for an

  individual/household

   Employment status

   Age

   Health status

   Economic outlook.