Competitive advantage
What is the term for when customers easily recognise and trust a business name or logo?
Brand recognition
Which element of the marketing mix focuses on advertising and attracting customers?
Promotion.
What type of debt is usually linked to investments that may improve future financial wellbeing?
Good debt.
What type of credit is mainly used to purchase a house?
Mortgage/home loan.
Advantage: allows consumers to access products immediately and spread repayments.
Disadvantage: may encourage overspending and lead to debt problems.
The Battle of Badr.
A business installs automated machines to reduce staffing costs and increase efficiency. What strategy is being used to gain a lower cost advantage?
Using technology/automation.
A business offers cheapter products during the holiday season to increase sales. Which “P” of the marketing mix is being changed?
Price.
Using a credit card to repeatedly buy expensive items you cannot afford is usually considered what type of debt?
Bad debt.
Which type of credit allows people to buy something immediately and repay it in smaller instalments over time?
Buy Now Pay Later (BNPL).
What is the meaning of the term “Hijrah” in Islamic history?
The migration of Prophet Muhammad and the Muslims from Mecca to Medina.
A large supermarket chain can buy products in bulk for cheaper prices than small stores. What competitive advantage does this demonstrate?
Economies of scale.
A business begins selling products online instead of only in physical stores. Which element of the marketing mix is mainly changing?
Place.
Why is a home loan often considered a form of good debt?
Because property may increase in value over time and provide rental income if the owners decide to rent it out
Why do payday loans often place people at financial risk?
They usually have very high fees or interest rates and can trap people in debt cycles.
Explain the difference between Zakat and Sadaqah.
Zakat is compulsory charity, while Sadaqah is voluntary charity.
A company sells shoes at similar prices to competitors but becomes successful because customers view its products as more stylish and higher quality. Which competitive advantage is being used?
Differentiation.
Why might a luxury brand choose high prices instead of low prices?
To create a premium image and make the product seem exclusive or high quality.
Explain TWO financial risks of relying heavily on Buy Now Pay Later services.
People may overspend, miss repayments, accumulate debt, or damage their financial situation.
A person uses a credit card to buy expensive items they cannot afford and struggles to repay the balance. What financial problem may occur?
Debt accumulation/debt trap.
After the death of Prophet Muhammad, what title was given to the leaders of the Muslim community?
Caliph (Khalifah).
Evaluate ONE advantage and ONE disadvantage of outsourcing production overseas.
Advantage: lower labour costs and increased profits.
Disadvantage: possible quality issues, ethical concerns, or damage to reputation.
Explain how TWO elements of the marketing mix could work together to increase sales of a new product.
Example: social media advertising (promotion) combined with lower introductory pricing (price) may attract more customers to try the product.
A university student takes a loan to study medicine. Evaluate whether this is likely to be good debt or bad debt.
Likely good debt because the qualification may lead to higher future income and career opportunities.
Compare ONE advantage and ONE disadvantage of using Buy Now Pay Later services.
Advantage: allows consumers to access products immediately and spread repayments.
Disadvantage: may encourage overspending and lead to debt problems.
Why was the Treaty of Hudaybiyyah important
It created peace between Muslims and Quraysh, allowing Islam to spread more rapidly.