Study Questions- Theme 1: Investigating small business

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  • Created by: DomBurns
  • Created on: 22-03-18 19:03
WHY do new business ideas come about?
Changes in technology. Changes in consumer wants. Products and services becoming obsolete.
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HOW do new business ideas come about?
Original ideas. Adapting existing products/services/ideas.
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What are examples of risks in business?
Business failure, financial loss, lack of security.
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What are examples of reward in business?
Business success, profit, independence.
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What is the role and purpose of business enterprise and activity?
Produce goods or services, to meet customer needs, to add value (convenience, branding, quality, design USPs.
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What is the role of entrepreneurship?
To organise resources, make business decisions and take risks.
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What are the four types of customer needs?
Price, quality, choice, convenience.
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Why do we have to understand customers?
To generate sales and for business survival.
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What is the purpose of market research?
To identify and understand customer needs, to identify gaps in the market, to reduce risk and to inform business decisions.
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What are the methods of primary market research?
Survey, questionnaire, focus group, observation.
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What are the methods of secondary research?
Internet, market reports, government reports.
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What are the two types of business aims objectives?
Financial aims and non-financial aims.
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What are examples of financial aims?
Survival, profit, sales, market share, financial security.
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What are examples of non-financial aims?
Social objectives, personal satisfaction, challenge, independence and control.
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Why is cash important to the business?
To pay suppliers, overheads and employees. To prevent business failure (insolvency).
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Give examples of short-term sources of finance.
Overdraft and trade credit
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Give examples of long-term sources of finance.
Personal savings, venture capital, share capital, loans, retained profit and crowdfunding.
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What are types of business ownership for start-ups?
Sole trader, partnership, private limited company, franchise.
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What are factors influencing business location?
Proximity to market, labour, materials and competitors. Nature of the business activity. The impact of the Internet on local decisions (e-commerce and/or fixed premises).
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What are the four elements of the marketing mix?
Product, price, place, promotion.
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Give examples of stakeholders.
Shareholders (owners), employees, customers, managers, suppliers, the local community, pressure groups, the government.
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Give examples of the different types of technology used by businesses.
E-commerce, social media, digital communication, payment systems.
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Give examples of external influences on businesses.
Technology, legislation, the economic climate.
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Other cards in this set

Card 2

Front

HOW do new business ideas come about?

Back

Original ideas. Adapting existing products/services/ideas.

Card 3

Front

What are examples of risks in business?

Back

Preview of the front of card 3

Card 4

Front

What are examples of reward in business?

Back

Preview of the front of card 4

Card 5

Front

What is the role and purpose of business enterprise and activity?

Back

Preview of the front of card 5
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