2022 Paper 1 Flashcards
(6 cards)
1
Q
Disadvantage of overdraft?
A
Loans have to be payed back.
So increased fixed costs
So decreased profit
2
Q
Impact of a small business from high unemployment rates?
A
Fall in demand
Customers have less disposable income.
Because they don’t have a job.
3
Q
How to reduce variable costs?
A
Cheaper supplier
Less raw materials cost
Increased profit
4
Q
Two reasons as to why conflict between owners and employees could affect profit?
A
Employees have decreased motivation.
Employees may put pressure for higher pay.
5
Q
Two impacts of having a strong brand?
A
Adds Value
Can associate positive memories with the brand which increases customer loyalty.
6
Q
A
