Aims and Organisation

Question 1

What is a business

Answer 1

Organisation that makes goods or provides a service

Question 2

What is a good

Answer 2

Physical products

Question 3

What is a service

Answer 3

Non physical items

Question 4

What are customer needs

Answer 4

The desires and wants of a consumer

Question 5

What is the Primary sector

Answer 5

The acquisition of raw materials

Question 6

What is the Secondary sector

Answer 6

The manufacturing and assembly process that converts raw materials into components or final product

Question 7

What is the Tertiary sector

Answer 7

Commercial services that support the production and distribution process

Question 8

What is Enterprise

Answer 8

Skill involved in wanting to start and run a business

Question 9

What is an Entrepreneur

Answer 9

An individual who sets up their own business

Question 10

What is a Business Plan

Answer 10

Report by a business containing all of its research findings and explains why the firm hopes to succeed

Question 11

What is a Monopoly

Answer 11

A business that has 25% or more market share of their respective market. Or the only supplier in the market

Question 12

What are the three benefits of a competitive market

Answer 12

price, product range and customer service

Question 13

What is product differentiation

Answer 13

Making your products stand out from competitor

Question 14

What are three methods of improving product differentiation

Answer 14

Strong brand image, Unique selling point and Competitive Factors

Question 15

What is a Sole Trader

Answer 15

Business that is controlled and owned by one person

Question 16

What are three advantages of being a Sole Trader

Answer 16

Easy to set up/Reduced Start Up Costs/Freedom to make decisions

Question 17

What are three disadvantages of being a Sole Trader

Answer 17

Responsibility/ Long hours/ Unlimited Liability

Question 18

What is a Partnership

Answer 18

Business owned by 2-20 people

Question 19

What are two advantages of being in a Partnership

Answer 19

Shared Experience/Shared Responsibility

Question 20

What are two disadvantages of being in a Partnership

Answer 20

Shared Profits/Arguments over Business Decisions

Question 21

What is a Limited Company

Answer 21

A company whose assets are separate to owners allowing for Limited Liability. They are owned by shareholders

Question 22

What are the two main types of Limited Companies

Answer 22

Public Limited Companies/Private Limited Companies

Question 23

What are the differences between the two types of Limited companies

Answer 23

Public allows anyone to shareholder however Private requires you to be invited to be a shareholder

Question 24

What is a Franchise

Answer 24

Buy into an existing brand and gain right to use their existing business model

Question 25

Who is involved in a Franchise

Answer 25

Franchiser, Franchisee

Question 26

What is an Aim/Objective

Answer 26

A statement of what the business wishes to achieve over the next 12 months

Question 27

Give 4 examples of an aim or objective

Answer 27

Survival/Increased profit/Increased Market Share/Growth

Question 28

What is a stakeholder

Answer 28

A person interested in the activities of a business or is affected by the activities of the business

Question 29

What are two advantages of a business growing

Answer 29

Gains influence over market/Economies of Scale

Question 30

What are the three ways businesses can grow

Answer 30

Internal growth/ External growth/ Franchising

Question 31

What is External growth

Answer 31

Where a business merges or takes over with another organisation.

Question 32

What is Internal growth

Answer 32

Business grows by hiring more staff and equipment to increase its output

Question 33

What is Franchising

Answer 33

Business leases its idea to franchises

Question 34

What are the three disadvantages of expanding

Answer 34

Larger debts/ More competition/ Not enough demand

Question 35

What are the three enterprise skills

Answer 35

Willingness to take risks/ willingness to show initiative/ willingness to undertake new ventures

Question 36

What is creative thinking

Answer 36

process by which individuals come up with new ideas or new approaches to business

Question 37

What are the three creative thinking methods

Answer 37

Lateral thinking/ Deliberate thinking/ Blue sky thinking

Question 38

What is Lateral thinking

Answer 38

Thinking outside the box

Question 39

What is Deliberate thinking

Answer 39

Doing something to spark new ideas

Question 40

What is Blue Sky thinking

Answer 40

Group of people look at something with a fresh perspective and generate as many ideas as possible

Question 41

What is Invention

Answer 41

Making new items or a new process to make existing items

Question 42

What is Innovation

Answer 42

Bringing a new idea to the market

Question 43

What are the three ways companies can protect their inventions

Answer 43

Patent/ Copyright/ Trademark