【Questions】
16 Which of the following measures might a government introduce to increase consumer demand in the economy?
A.A policy of high interest rates
B.Strict credit controls
C.Reduced levels of taxation
17 The hierarchy developed by Robert Anthony suggests that business control is exercised primarily by managers at which level of the organisation?
A.Strategic
B.Operational
C.Tactical
D.Divisional
18 Which TWO of the following statements about Porter's five forces model are true?
A.The bargaining power of customers may be reduced if products can be differentiated effectively
B.Competitive rivalry in an industry will intensify when there are significant threats from substitutes
C.A high level of competitive rivalry in an industry is always dependent on the number of producers in the market
D.Threat of new entrant is lower when existing suppliers derive purchasing economies of scale
【Answers】
16 Reduced levels of taxation Cuts in taxation would stimulate demand in the economy because companies and households
would have more after-tax income to spend or invest.
17 Tactical Anthony's hierarchy suggests that managers at the tactical level exercise business control.
18 The bargaining power of customers may be reduced if products can be differentiated effectively and Threat of new
entrant is lower when existing suppliers derive purchasing economies of scale According to Porter's five forces model, the
bargaining power of customers may be reduced if products can be differentiated effectively, and threat of new entrants is
lower when existing suppliers derive purchasing economies of scale.
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