Pearson Edexcel IGCSE · Commerce

Buying and selling: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Buying and selling.

9 questions20 marksFree, no account

Question 1

1 mark

When a retail business in the UK buys inventory from a manufacturer located in China, which source of buying is being used?

Question 2

1 mark

Which of the following is specifically classified as a transaction cost associated with international buying?

Question 3

1 mark

A large electronics firm decides to outsource its customer support and after-sales service to an external provider. Which combination of costs is most likely to increase for the firm as a direct result of this specific decision?

Question 4

1 mark

When a business in the UK purchases raw materials from a supplier located in Brazil, this is an example of:

Question 5

1 mark

Which of the following is a transaction cost specifically associated with buying goods from an international supplier?

Question 6

2 marks

In the context of buying and selling, define what is meant by a home source of buying.

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Question 7

3 marks

Briefly distinguish between staffing costs associated with buying and the costs of sales staff associated with selling in a commercial firm.

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Question 8

5 marks

Explain how transaction costs, such as exchanging currencies, can impact the total cost for a firm engaged in international buying.

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Question 9

5 marks

Businesses must carefully manage the costs involved in their trading activities.

(a) Identify two costs specifically associated with buying goods from an international supplier. (2)
(b) Explain the difference between home buying and international buying. (2)
(c) State one reason why a firm might choose to outsource its production to another company. (1)

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

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