The digital economy

Which one of the following is a type of business ownership?

Select one answer.

Which one of the following is a short-term source of finance?

Select one answer.

Explain one way e-commerce could lead to increased sales for a small business.

Explain one possible advantage to a small business from a decrease in government taxation.

State one cash outflow for Pizza Pilgrims.

Outline one drawback to Pizza Pilgrims from using digital payment systems.

In order to increase profit, Pizza Pilgrims is considering two options:

Option 1: increase the prices of ‘Pizza Through the Post’

Option 2: adding more items to the menu

Justify which one of these two options Pizza Pilgrims should choose.

Which one of the following is a financial aim for a new business?

Select one answer.

Figure 1 shows the number of units sold by a business each month from June to August. The break even level of output for each month was 5,000.

Using the information in Figure 1, calculate the margin of safety for August. You are advised to show your workings.

Explain one disadvantage to a small business from an increase in unemployment.

Explain one advantage to a small business from using e-commerce.

Discuss the way a small business could use branding to add value.

Table 2 shows how many pairs of trainers were customised by Adikoggz from July to December 2022.

Using the information in Table 2, calculate the average number of trainers customised per month from July to December 2022. You are advised to show your workings.

Using the information in Table 2, calculate, to 2 decimal places, the percentage change in sales from November to December 2022.

Analyse the advantage to Adikoggz from using social media to promote its products.

State one non-financial aim that Melanie may have had when starting Little Movers.

Outline one benefit to Little Movers of having an online booking system.

Little Movers is considering two options to carry out market research for possible new franchises in Poland:

Option 1: internet research to identify competitors in Poland

Option 2: conducting focus groups with parents living in Poland.

Justify which one of these two options Little Movers should choose.

State one source of revenue for Digital Allies.

Figure 2 shows the number of social media accounts in the UK in 2019.

Number of social media accounts (millions)

(Source: adapted from https://www.avocadosocial.com/latest-social-media-statistics-and-demographics-for-the-uk-in-2019/)

Using the information in Figure 2, identify which social media platform was the second largest in the UK in 2019.

Outline one impact on the owners of Digital Allies from being a private limited company.

In order to help improve digital marketing for a local university, Digital Allies is considering two options:

Option 1: improve the design of the university website

Option 2: design a social media campaign to target new students.

Justify which one of these two options Digital Allies should choose.

Evaluate the impact that changes in technology may have on Digital Allies. You should use the information provided as well as your knowledge of business.

Which two of the following can be interpreted from a break even diagram?

Select two answers.

Which two of the following are types of technology that could be used by a business?

Select two answers.

Table 1 shows the cash-flow forecast for a small business.

Complete the table with the two missing figures.

Explain one reason why an entrepreneur may adapt an existing product to come up with a new business idea.

Explain one disadvantage to a small business of using a focus group to collect market research data.

Outline one reason why cash would be important to On Your Bike.

Analyse the impact on On Your Bike of customers using social media to review the business.

State one stakeholder of Loco.

Table 3 shows the interest rate paid on savings between 2014 and 2017.

Using the information in Table 3, identify the best year for Loco to save any retained profit it may have.

Outline one way that a business plan could have helped Joe Thwaites when starting Loco.

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.

Evaluate the extent to which Loco will be able to compete with large manufacturers of SUPs. You should use the information provided as well as your knowledge of business.

The new head chef carried out secondary market research to identify information about the food market.

State one benefit to Last Course Patisserie of conducting secondary market research.

Outline one impact on a stakeholder group of Last Course Patisserie if it relocates to new premises.

In order to increase the number of desserts that can be produced to meet the extra demand, Last Course Patisserie is considering two options:

Option 1: investing in new machinery

Option 2: employing more staff.

Justify which one of these two options Last Course Patisserie should choose.

State one way Aphrodite could use social media.

Table 3 shows the value of the pound (£) in euros (€) from June to September.

Identify, from Table 3, which month was best for Aphrodite to import clothes from Paris.

Outline one reason why Aphrodite’ s range of stock could give it an advantage over its competitors.

To pay for the conversion of the premises, Aphrodite is considering two options:

Option 1: obtaining a bank loan

Option 2: crowd funding.

Justify which one of these two options Aphrodite should choose.

Evaluate the impact of e-commerce on Aphrodite ’s marketing mix. You should use the information provided as well as your knowledge of business.