Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

EDUQAS A-Level Business Studies > 1.1: Enterprise > Flashcards

1.1: Enterprise Flashcards

1.1.1: Enterprise 1.1.2: Entrepreneurs 1.1.3: Stakeholders 1.1.4: Business Plans 1.1.5: Markets 1.1.6: Market Size, Share and Growth 1.1.7: Market Segmentation 1.1.8: Competition 1.1.9: Market Research 1.1.10: Business Location

1
Q

What is an SME

A

Small has <50 employees and a turnover less than 10 m whereas a medium sized has ,250 employees and has a turnover less than 50 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the different sectors of the economy

A

Primary: Production
Secondary: Manufacturing
Tertiary: Service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an entrepreneur

A

Someone who starts and runs their own business and has responsibility for the risk involved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Explain two motivations of business owners

A

To gain a profit: Not the main focus but is the bigger picture for start ups
Be their own boss: Turning an idea into reality under your own control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

State 4 skills or characteristics of an entrepreneur

A

Innovator, Risk Taker, Ability to identify and exploit new opportunities and Hard Working

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

State 4 sources of business ideas for entrepreneurs

A

Spotting a gap in the market, Copying ideas from another country, Scientific Approach and Looking at competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

State 4 reasons why entrepreneurs are important for the country

A

Increased Employment, Economic Boost, Greater Government Tax Flow and Potential Overseas Exports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the two types of stakeholder

A

Internal: Part of the daily running of the business
External: Not part of the business but crucial for its survival

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

State two things each stakeholder would want from a business

A

Shareholders: Dividends and ROI
Managers: Job Security
Employees: Job Security and Appraisals
Suppliers: A customer and Reliability
Customers: Quality Goods and Reliable Service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a Business Plan

A

A detailed document that sets out how the business is going to operate and what it hopes to achieve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

State the contents of a business plan

A

Business Description and Idea, SMART Targets, Marketing Plan, Production Plan, HR Plan and Financial Plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

List the benefits and drawbacks of producing a Business Plan

A

Monitor Performance, Ensure clear targets, Identify resources needed, financial support and its in one place
Time, Money, Opportunity Cost and Expertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the two main forms of markets

A

Traditional: Physical
Non-Geographical: Online

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are 4 sub markets

A

Local, National, Global and Seasonal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

State 3 reasons why a firm would sell overseas

A

Saturated Domestic Market, Regulations and Spread Risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the difference between Consumer and Trade Markets

A

Consumer: Business Sells to a consumer
Trade: Business to Business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How is a niche market categorised

A

Premium Priced Products, Small Sales Volume and Highly differentiated Products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

State 3 advantages and 3 disadvantages of Niche Markets

A

Fewer competitiors, Adaptable and Personal Service
Profit Limitations, Vulnerability and Large firms attraction to the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How is a mass market categorised

A

Standardised Products, High Sales Volume, Availability, Low Prices and Extensive Promotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

State 2 advantages and 2 disadvantages of Mass Markets

A

Large Sales Revenues and Predictable Steady Revenue
High expenditure and Attracts competition

21
Q

What is market size

A

Total sales of all producers in a marketplace calculated in volume which indicates potential sales of a firm
No of Industry Sales x Selling Price

22
Q

What is Market Growth

A

The percentage change in size of a whole market over time
Change in Size / Original Size x 100

23
Q

What is Market Share

A

The percentage of Sales that a single firm or product has in one market. Vol (Items sold) or Value (amount of sales pounds spent)
Sales of 1 brand/product
Total Market Sales x100

24
Q

What is Market Segmentation

A

When a business breaks the market down into small groups with consumers that have similar needs/characteristics

25
Q

Why use Segmentation

A

Allows from precise targeting at needs of consumers, Reduces wastage on marketing and firms can stress elements that appeal to their target market

26
Q

How are markets segmented

A

Segment must be recognisable (differentiation), Critical Mass (must be financial worthwhile) and Targetable (specific marketing)

27
Q

What are the 4 methods of segmentation

A

Demographic: Age, Social Class, Income
Psychographic: Personality, Lifestyle
Geographic: Rural, Urban, Global
Behavioural: Buying Habits, Brand Loyalty

28
Q

State 2 advantages and 2 disadvantages of Market Segmentation

A

Increase Market Share and Extend products into new markets
Failure to meet customer needs and Difficulty in identifying the most important segments for a product

29
Q

What are the key characteristics of a monopoly

A

Maximised profit, 100% Market Share, No Competition and Large Barriers to entry

30
Q

What is the impact on business behaviour

A

Significant Profits, Protection and Reinvestment in new tech due to massive profits + lower prices for consumers

31
Q

What are the key characteristics of a oligopoly

A

Few firms with price making power competing on anything other than price

32
Q

What is the impact on business behaviour

A

Collusion may occur, aim is to maximise profit, high barriers to entry and exit

33
Q

What are the key characteristics of Monopolistic Competition

A

Slightly differentiated products, limited price setting powers and very few barriers to entry and exit

34
Q

What is the impact on business behaviour

A

maximise profits in the short run but will attracted entrants into the market they focus on differentiation

35
Q

What are the key characteristics of perfect competition

A

Firms are price takers with no barriers to entry or exit selling homogenous products

36
Q

What is the impact on business behaviour

A

No brands and they cant set their own price because if they set it too high demand will fall

37
Q

State two barriers to entry

A

Brand Loyalty and Legal Restrictions

38
Q

State 4 types of primary research

A

Surveys, Focus Groups, Product Trials and Observation

39
Q

State 3 advantages and disadvantages of primary research

A

Tailored to the firms needs, up-to date information and Competitors cannot access the information
Expensive, Time Consuming and May be bias to a certain market area

40
Q

What is random sampling

A

Literally pulling random people

41
Q

What is Quota Sampling

A

Selecting people that are within your target group

42
Q

How do you choose a sampling method

A

Time availability and Knowledge of the target population

43
Q

State two internal sources of secondary research

A

Stock Analysis and Company records

44
Q

State two external sources of secondary research

A

Government Stats and Trade Publications

45
Q

State 3 advantages and disadvantages of secondary research

A

Cheap, Good Market Overview and Date can be checked over various sources
Out of date, some are expensive to buy and data could be biased

46
Q

Explain Qualitative methods of collecting data

A

Opinion based data that can be unreliable but they regain validity in terms of the methods of data collection

47
Q

Explain Quantitative methods of collecting data

A

Statistically reliable information which has been backed up by further enriched information

48
Q

What are the influences on location

A

Competition, Cost, Infrastructure, Closeness to Customers, Labour Availability ,Government Influences and International Location Choices

EDUQAS A-Level Business Studies (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions