Section A
(a) Define the term ‘market share’. [2]
Maket share is the percentage of sales in the total market sold by one business
(Firms sales in time period/ Total market sales in time period)x100
(b) Explain two ways a retailer could increase its market share. [3]
A retailer could increase its market share by stocking and promoting the best selling brands which may result in more sales over a given period of time as consumers are often keen to buy ‘the most popular brand’.
Additionally, a retailer could increase its market share by providing discounts and offers which may help differentiate the business from other direct competitors, hence increasing sales.
2 (a) Define the term ‘venture capital’. [2]
Venture capital is the risk capital invested in business start-ups or expanding businesses that have good profit potential but do not find it easy to gain finance from other sources.
(b) Explain two ways that venture capitalists might help a business. [3]
Venture capitalists may help a business by funding the business with new technology and machinery in which other providers of finance might not be will to get involved in.
Additionally, venture capitalists may provide start-up capital for a business this could help a business purchase essential capital equipment and possibly premises.
Team-working is where production is organised so that groups of workers undertake complete units of work.
By working in teams, workers are likely to be better motivated because social and self esteem needs are more likely to be met as workers are made to feel involved and are recognized for work well done with status, advancement and responsibilities also being acknowledged. This could result in the achievement of job enrichment.
4 (a) Define the term ‘productivity’. [2]
Productivity refers to the ratio of outputs to inputs during production. e.g output per worker per given time period.
(b) Explain two ways that process innovation could improve the efficiency of a manufacturing business. [3]