Which one of the following is a definition of an exchange rate?
Select one answer.
The flow of goods and services into a country
The value of one currency in terms of another currency
A tax on a particular good or service
When businesses operate on an international scale
Did this page help you?
Which two of the following areas are covered by employment law?
Select two answers.
| A. | Consumer rights | |
| B. | Discrimination | |
| C. | E-commerce | |
| D. | Health and safety | |
| E. | Quality of products |
Did this page help you?
Read the following extract before answering.
Outline one impact on a stakeholder group of Last Course Patisserie if it relocates to new premises.
Did this page help you?
1 markRead the following extract before answering.
Table 3 shows the value of the pound (£) in euros (€) from June to September.
| Month | Number of euro (€) per pound (£) |
| June | 1.13 |
| July | 1.11 |
| August | 1.09 |
| September | 1.14 |
Table 3
Identify, from Table 3, which month was best for Aphrodite to import clothes from Paris.
Did this page help you?
Read the following extract before answering.
Outline one impact on On Your Bike of an increase in the value of the pound.
Did this page help you?
Read the following extract before answering.
State one stakeholder of Loco.
Did this page help you?
Read the following extract before answering.
Table 3 shows the interest rate paid on savings between 2014 and 2017.
| Year | Interest rate (%) |
| 2014 | 1.49 |
| 2015 | 1.40 |
| 2016 | 1.25 |
| 2017 | 1.00 |
Table 3
Using the information in Table 3, identify the best year for Loco to save any retained profit it may have.
Did this page help you?
Which two of the following are types of technology that could be used by a business?
Select two answers.
| A. | Consumer law | |
| B. | Crowd funding | |
| C. | Digital communication | |
| D. | Marketing mix | |
| E. | Payment systems |
Did this page help you?
Read the following extract before answering.
Outline one likely impact of changing levels of consumer income on Sports Tours Ltd.
Did this page help you?
Read the following extract before answering.
Identify one external stakeholder of Last Course Patisserie Ltd.
Did this page help you?
Outline one principle of consumer law.
Did this page help you?
During Max's first year of trading, interest rates increased from 2.0% to 5.5%. Identify a possible effect of this on Max's business.
A reduction in fixed costs due to lower repayments on his overdraft
An increase in sales due to higher levels of consumer spending
A greater chance of rivals entering the market
A fall in sales due to higher levels of consumer saving
Did this page help you?
9 marksRead the following extract before answering.
To expand its business in response to the growth in the cycling market, On Your Bike is considering two options:
Option 1: open a second shop
Option 2: start to use e-commerce on its website.
Justify which one of these two options On Your Bike should choose.
Did this page help you?
9 marksRead the following extract before answering.
In order to make improvements to the business, Loco is considering two options:
Option 1: introduce a digital payment system e.g. PayPal
Option 2: hold online meetings using digital communication.
Justify which one of these two options Loco should choose.
Did this page help you?
6 marksRead the following extract before answering.
Evaluate the importance to Last Course Patisserie of following all relevant employment laws. You should use the information provided as well as your knowledge of business.
Did this page help you?
3 marksExplain one disadvantage to a small business of an increase in interest rates.
Did this page help you?
2 marksRead the following extract before answering.
Sports Tours Ltd has been organising football tours to Munich, Germany since 2010. The price of a hotel room in Munich in 2010 was €100.
Table 2 shows the value of the pound (£) in euros (€) in June 2010 and June 2019.
| Number of euro (€) per pound (£) |
|
| June 2010 | 1.23 |
| June 2019 | 1.13 |
Table 2
Using the information in Table 2, calculate, to 2 decimal places, the price in pounds (£) of a hotel room in 2010. You are advised to show your workings.
|
£ .............................................................. |
Did this page help you?
2 marksRead the following extract before answering.
In 2019 the cost of a hotel room had increased to €130.
Using the information in Table 2, calculate, to 2 decimal places, the price in pounds (£) of a hotel room in 2019. You are advised to show your workings.
| Number of euro (€) per pound (£) |
|
| June 2010 | 1.23 |
| June 2019 | 1.13 |
Table 2
|
£ .............................................................. |
Did this page help you?
6 marksRead the following extract before answering.
UK consumer incomes are expected to rise over the next 10 years.
Analyse the likely impact on Last Course Patisserie of this changing level of consumer income.
Did this page help you?
6 marksRead the following extract before answering.
Analyse the impact on On Your Bike of customers using social media to review the business.
Did this page help you?
Explain one reason why a small business may choose not invest in the latest technology.
Did this page help you?
Explain one possible conflict between business owners and employees.
Did this page help you?
Discuss the impact of lower unemployment rates on a small high-tech electronics manufacturer.
Did this page help you?
Explain one way a small business may respond to a change in employment law.
Did this page help you?
4 marksA UK-based small business has the following costs in September:
| September cost | |
| Raw materials imported from German suppliers | £20,000 |
| Raw materials from UK suppliers | £14,000 |
| Expenses | £22,000 |
| Exchange rate | £1 = €1.25 |
In October, the exchange rate has changed to £1 = €1.10.
Assuming all other data remain the same, calculate the change in the businesses profit in October.
Did this page help you?
Discuss the impact on a small fashion retail business of rising inflation.
Did this page help you?
Explain how one economic factor may affect demand for a small businesses goods or services.
Did this page help you?