1.1 The Purpose And Nature Of Business.

Question 1

Definition of business

Answer 1

A business is an organisation designed to supply a product of service

Question 2

Defintion of product

Answer 2

A product is anything that is capable of satisfying customer needs and it’s tangiable

Question 3

Defintion of service

Answer 3

A service is an act that a business person carries out for you in exchange for money for example dental treatment,accountancy and agents.

Question 4

Definition of land

Answer 4

Somewhere to produce the goods e.g farm.

Question 5

Definition of labour

Answer 5

People to work in the business e.g farm worker

Question 6

Definition of capital

Answer 6

Money to get the business started.

Question 7

Defintion of enterprise

Answer 7

This is the drive or motivation from the owners to start a business.

Question 8

Definition of primary sector

Answer 8

Extract raw materials from the earth by digging it up

Question 9

Definition of secondary sector

Answer 9

Manufacturings like cars,toys.

Question 10

Defintion of tertiary sector

Answer 10

When products are sold.

Question 11

Sole trader

Answer 11

Your self employed run your own business as an individual and work for yourself.

Question 12

Partnership

Answer 12

Legal arrangement that allows two or more people to share the responsibility for a business.

Question 13

PlC

Answer 13

A company company that is legally allowed to offer it’s shares for sale to the public

Question 14

LTD

Answer 14

Only allowing to invite people to buy your shares

Question 15

Not for profit organisation

Answer 15

Doesn’t earn profit for it’s owners

Question 16

Companies house

Answer 16

Any limited company or partnership business has to register with companies house.usually a fee to register.

Question 17

Survival

Answer 17

Trying to stay open once you open your business

Question 18

Make profit

Answer 18

Making more money that you spend on products than buying products

Question 19

Stakeholders

Answer 19

A person with an interest or concern about something e.g local community,government,owners.

Question 20

Domestic growth

Answer 20

How many shops a business have in a country

Question 21

Internationally

Answer 21

How many shops you have you have around the world

Question 22

Suppliers

Answer 22

To get the items to the customer quickly

Question 23

Market research

Answer 23

Who will buy the product
Why will they buy it
How bug is the market

Question 24

External pressures

Answer 24

Who are the competitors
How are they performing
How is the economy performing

Question 25

Sales and marketing

Answer 25

What price shall we charge
How can we promote the product
How can we distribute the product

Question 26

Production process

Answer 26

Where to setup
How to organise the factory
What production methods
Can we ensure quality

Question 27

Human resources

Answer 27

How many employees
What skills/training are needed
How will we manage our employees.

Question 28

Financial forecasts

Answer 28

Cash flow
Profit and less account
Balance sheet
Sales.