Business theme 1 flashcards
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- Created by: Jjser123
- Created on: 22-08-19 10:37
(Dynamic Nature) A _______ is anything capable of satisfying customer needs. product
product
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A _______ is an act that a business person carries out for you in exchange for money. service
service
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A service is _______________
intangible
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Since the invention of the ________ in 1990, businesses have found a new cheaper way to reach the consumer. internet F
internet
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Small businesses are now able to set up and sell virtually anything ______..
online
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(Risk and Reward) Name an example of risk in a business:
business failure -loss of money -lack of secure income -lack of security
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Name an example of reward in a business
business success, profit, independence.
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(Business Enterprise) What are goods?
physical tangible products (e.g. table, drink, shoelace)
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What are services?
non-physical intangible products (e.g. haircut, gardening, bus ride)
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What are B2C and B2B?
A B2C busines sells to customers (B2C business-to-customer) whereas a B2B business sells to other businesses (B2B business-to-business)
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What Do Businesses Do?
Businesses exist to provide customer needs and wants.
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What is a enterprise?
an enterprise is a business or organisation. It is a factor of production and has the qualities of an entrepreneur.
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What is the role of a enterprise?
To add value to existing ideas , To improve quality ,To add a USP ,To improve convenience ,To add a brand to a specific design or product
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What does USP stand for?
unique selling point
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(The Role of Entrepreneurs ) Identifying business ideas
Entrepreneurs identify the business opportunity and designs a business to fill a particular gap in the market by weighing the risks vs rewards
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Do entrepreneurs need to take risks?
All entrepreneurs take risks. Successful entrepreneurs, however, take calculates risks and succeed but less successful entrepreneurs take risks and fail
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What are the three main roles of an entrepreneur
Organise Resources ,Takes risks ,Make important business decisions
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(Customer needs)Give an example of customer needs
price, quality, choice, convenience
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(Market research) Why is market research needed?
Market research is needed so that the business can find out what the customers needs are and what they expect and like so that they can then change their product/service so it will do well and customers will like it.
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What is a market?
A market is any place where buyers and sellers meet to trade products
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What is primary research?
Primary research is field research where new data is collected that hasnt been found before. This can be from surveys and questionairs
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What is secondary research?
Secondary research is desk research that has already been found out for you and it can be found on the internet and in newspapers and magazines
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What is quantitative market research
It is the collection of information about the market based on numbers
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what is qualitative market research
the collection of information about the market based on subjective factors such as opinions and reasons
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(Market segmentation) Give 4 reasons why the market may be segmented
To increase profit, to diversify, to target promotion and identify needs of the market
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Define market segmentation
Splitting a market into groups with different characteristics and needs
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Give 5 advantages of market segmentation
Increase share, decrease risk, economies of scale, less research needed, cheaper/ effective promotion
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Give 7 ways the market can be segmented
Age, Gender, Class, Religion, Residence, Geography, Occupation
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(Competitive environment)The amount that people spend in shops is mostly determined by this Disposable incom
Disposable income
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This is where one business has complete control over it's market Monopoly
Monopoly
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This is where a small number of large firms dominate a market and charge similar prices
Oligopoly
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if a supplier gains power in a market then they are able to charge ....
Higher prices
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This is where all firms compete on an equal basis Perfect compe
Perfect competition
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This is the strongest business in a particular market Dominant busin
Dominant business
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(Business aims and objectives)What is a business aim?
What the business hopes to acheive as a result of its work
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What is a business objective?
Activities or targets that the business sets itself in order to achieve the aims
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Why is a main business aim is to survive?
Because a recent economic downturn makes it difficult for business to stay open
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How might a business grow?
Achieveing any of their objectives, increasing profit, increasing number of stores
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What are the examples of no financial aims?
Fof the employer to gain a better quality of life, for the business to have a better reputation
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(Business revenues,cost and profits) profit
This is the difference between revenue and costs (e.g. money after paying the bills).
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Loss
This is not making a profit (e.g. forced to pay higher for raw materials).
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Revenue
This is selling goods and services.
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Costs
Any costs that occur during the production of the goods or services
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Variable Costs
Costs that change with output (e.g. fuel / raw materials).
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Semi-variable costs
Costs which would normally be fixed but sometimes change (e.g. wages).
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Fixed costs
Costs which don't change with output (e.g. rent / insurance).
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Total costs
Fixed and variable costs added together
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Direct costs
These are identified with a particular product (e.g. raw materials / packaging).
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Indirect costs
Also known as Overheads. These costs result from the whole business, they're usually fixed (e.g. rent / insurance / salaries).
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Short run
These are often one factor that is fixed.
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long run
These are factors that can vary, none of them are fixed.
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(Cash and cash-flow) what is the correct definition for 'cash flow'
the flow of cash into and out of a business
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profit=_________
Revenue - costs
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What is a disadvantage of taking out a loan?
have to pay interest on the loan
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(Sources of business finance) Retained profits
Profits which are ploughed back into the business
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What is a bank loan?
money borrowed from the bank at an agreed rate of interest over a set period of time
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What is a sale of fixed assets?
Selling off a piece of equipment that is no longer needed within the business
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What is leasing?
The business rents an asset rather than buys it
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What is working capital?
Finance used to pay for the day-to-day running expenses of the business
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What is short term finance?
Finance which is used to meet the costs or expenses of the business in the near future
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What is start up capital?
Finance which is needed to get the business started
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What is the internal sourcing of finance?
Finance raised from within the organisation
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What is bank overdraft?
Where the business is allowed to be overdrawn on its account, up to an agreed limit
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What is hire purchase?
Where the business pays for an asset n instalments and owns the asset one the last payment has been made
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(The options for start-up and small businesses) What is a sole trader?
The most common and most simple form of business organisation, often just one person.
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What is a partnership?
The simplest way two or more people can be in business together, where partners are jointly and personally responsible for debts
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What is unlimited liability?
Unincorporated businesses, such as sole traders and partnerships, have unlimited liability, which means that the owners are responsible for all the business' debts.
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What is limited liability?
Investors (shareholders) in a limited company can only lose their investment in the business if it fails; they cannot be forced to sell assets to pay off the firm's debts.
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What is incorporation?
The process of forming a limited liability company such as a ltd or plc.
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What is management conflict?
Conflict management is the practice of being able to identify and handle conflicts sensibly, fairly, and efficiently.
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(Business Location) What is a location?
Conflict management is the practice of being able to identify and handle conflicts sensibly, fairly, and efficiently.
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What is an optimal location?
This is the best possible site for a business. It is where costs are minimised and benefits are maximised.
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(The Marketing Mix) What do the 4Ps stand for?
Price, Place, Product, Promotion
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What is the most important factor when making a product?
The product should satisfy customers' needs or wants
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What is meant by a 'Gap in the market,
An opportunity in a market where no supplier provides a product or service that buyers need
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Why may a business need to adapt their Marketing Mix in the future?
If a businesses product changes then so may their target market. This means the business may have to adapt their price,place and promotion to fit the new market they have entered
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What is most important when creating your marketing mix?
Promotion should make potential customers aware that the product exists and the product should be available in places convenient for people in the target market
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(Business plans) What is the purpose of business ?
To make the owner think about the details of their business idea and if it will actually work. It is also used to convince investors.
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What personal details need to be included?
The CVs of the owner and important personnel
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what are the objectives?
More specific targets for the business
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What are the production Details?
The equipment and the location of production
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What are the staffing requirements?
The number of personnel needed and their wages, specific personnel needed e.g. managers, accountants
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What is the finance?
Start-up capital and the source of it
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(Business stakeholders) What is stake holder ?
A stakeholder is anyone with an interest in a business
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What are internal stakeholders?
Internal stakeholders are groups within a business - eg owners and workers.
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What are external stakeholders?
External stakeholders are groups outside a business - eg the community.
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What are the objective of an owner?
Owners generally seek high profits and so may be reluctant to see the business pay high wages to staff.
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(legislation)Explain how staff are protected by health and safety laws
Employees must: •give employees sufficient breaks during the day •keep the maintenance of workplace temperatures •provide protection against dangerous substances
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Explain how staff are protected by the employment rights law
allow female staff maternity leave •Provide a safe working environment •Give all employees at least 24 days of paid holidays •Not force workers to work over 48 hours a week
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Explain how staff are protected by the equal pay and minimum wage laws
It says employers have to pay men and women the same if they have the same job
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Explain how staff are protected by the equal pay and minimum wage laws
Pay at least minimum wage. The minimum wage act states the minimum amount of money that a business must pay their staff
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Other cards in this set
Card 2
Front
A _______ is an act that a business person carries out for you in exchange for money. service
Back
service
Card 3
Front
A service is _______________
Back
Card 4
Front
Since the invention of the ________ in 1990, businesses have found a new cheaper way to reach the consumer. internet F
Back
Card 5
Front
Small businesses are now able to set up and sell virtually anything ______..
Back
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