1.4

Question 1

Bankrupt

Answer 1

when an individual is unable to pay their debts, even after all personal assets have
been sold for cash.

Question 2

Limited liability

Answer 2

restricting the losses suffered
by owners/shareholders to the sum they invested in the buisness

Question 3

Private limited company

Answer 3

a small family business
in which shareholders enjoy limited liability.

Question 4

Sole trader

Answer 4

a business run by one person; that person has unlimited liability for any business debts

Question 5

Unlimited liability

Answer 5

treating the business and
the individual owner as inseparable, therefore
making the individual responsible for all the
debts of a failed business.

Question 6

Fixed premises

Answer 6

buildings that have to
be where they are (for example, the high street); e-commerce buildings can be located anywhere

Question 7

Proximity

Answer 7

nearness; whether or not a
business wants to be close to a factor such as materials

Question 8

Place

Answer 8

how and where the supplier is going to get the product or service to the consumer; it includes selling products to retailers and getting the products displayed in prominent positions.

Question 9

price

Answer 9

setting the price that retailers must pay, which in turn affects the consumer price.

Question 10

product

Answer 10

targeting customers with a product that has the right blend of functional and aesthetic
benefi ts without being too expensive to produce.

Question 11

promotion

Answer 11

within the 4Ps promotion means
all the methods that a business uses to persuade customers to buy, for example branding,
packaging, advertising to boost the long-term image of the product and short-term offers.

Question 12

buisness plan

Answer 12

a detailed document setting out
the marketing and fi nancial thinking behind a
proposed new business.