Pearson Edexcel IGCSE · Commerce

Improving commercial performance: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Improving commercial performance.

9 questions21 marksFree, no account

Question 1

1 mark

Which of the following describes the most direct way to control and reduce operating expenses in an office-based business?

Question 2

1 mark

A retailer holds slow-moving, out-of-season stock that is tying up working capital and reducing inventory turnover. Which strategy is most effective to improve its inventory turnover quickly?

Question 3

1 mark

How can a business specifically improve its inventory turnover ratio?

Question 4

1 mark

Which of the following actions is a direct method for a retailer to reduce its purchasing costs?

Question 5

1 mark

Which of the following strategies is most likely to improve a firm's gross profit margin?

Question 6

2 marks

Identify one method a supermarket can use to control and reduce its operating expenses.

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Question 7

3 marks

Identify and explain one specific method a firm could use to improve its inventory turnover.

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Question 8

5 marks

Explain how a business might use a higher mark-up to improve its commercial performance, and identify one risk associated with this strategy.

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Question 9

6 marks

A company's financial records show that expenses as a percentage of turnover have increased from \(10\%\) to \(18\%\) over two years, while the Gross Profit Margin remained constant at \(35\%\).
Part A: Analyze the impact of this change on the Profit for the Year (Net Profit) Margin.
Part B: Suggest three specific methods the company could use to improve its commercial performance by reducing expenses.

Write your answer out first, then check it against the worked solution.

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