Amaaima

Question 1

What is an Entrepreneur?

Answer 1

it’s a person who spots the opportunity to start and run their own business.
Someone who takes a risk in the hope of making money.
Someone who has enterprise skills to help them become successful.

Question 2

Why do businesses exist?

Answer 2

Businesses exist to satisfy the needs and wants of customers. They provide good and services at a price that people are willing to pay, in return for profit.

Question 3

What are the steps to success?

Answer 3

Spot a gap/opportunity
Develop ideas
Satisfy needs and wants

Question 4

What are the characteristics of an entrepreneur?

Answer 4

You would have to have knowledge and know what your going to do.
You have to be:
-patient/perseverance
-Hard working ext.
-Confident/determination
-Your communication skills have to be good and your product will succeed and you will make your people believe that your product is very good.

Question 5

Risks?

Answer 5

risks:
Financial could be a risk because you could lose all of the money you have invested into it and your product might not do very well.
Health could be very difficult as you stress loads and this could also affect your family and relationships because you wouldn’t see your family as much.
If your business fails, it could harm your reputation
Failure, you could lose all of your money.

Question 6

rewards?

Answer 6

independence- do what you want and don’t let anyone tell you what to do
self satisfaction- if your business succeeds than you can have a high satisfaction that your business is really good.
changing customer habits- making customers do something differently e.g. making something healthy.
financial- making a large amount of profit on your business.
make own decisions- when you choose what you want to do.

Question 7

How can RISK be reduced?

Answer 7

• market research
• speak to experts/ gain advice
• business plan
• contingency planning (plan B)

Question 8

Aims and Objectives?

Answer 8

Aim- is a long term goals a business wants to achieve.
Profit- profit is one of their main objectives. Some businesses want to maximise profits which means they will try to make as much profit as possible. this may mean that a consumer might feel that they are not being treated well.
Objectives- Steps a business will take to work towards achieving its aims. Objective are often written as SMART targets. For example, increase sales income by 30% over 2 years.
S- specific
M- measurable
A- achievable
R- realistic
T- time-bound

Question 9

What is a Business Ownership?

Answer 9

A business ownership is a:
- sole trader
-partnership
-private limited company ( PLC)
-public limited company (PLC)
each type of ownership has different features, advantages and disadvantages.
The type of ownership chosen will depend on a number of factors.

Question 10

Business Ownership

Answer 10

Deed of partnership is a legal contract signed by the partners. it contains:

Question 11

what is market research?

Answer 11

A market research is any place where buyers and sellers meet to trade products- it could be a high street shop or a website.

Question 12

what is the first step to a new business or a new product?

Answer 12

the first step is to gather information about customers needs, competitors and market trends. An entrepreneur can use the results of market research to produce competitive products.

Question 13

What is primary research?

Answer 13

involves gathering new data that has not been collected before. For example, surveys using questionnaires or interviews with groups of people in a focus group.

Question 14

What is secondary Research?

Answer 14

it involves gathering existing data that has already been produced. For example, researching the internet, newspapers and company reports.

Question 15

what does accurate market research do?

Answer 15

Accurate market research helps to reduce the risk of launching new or improved products.

Question 16

what are market segments?

Answer 16

most markets contain different groups of customers who share similar characteristics and buying habits. These collections of similar buyers make up distinct market segments.

Question 17

What is Targeted Marketing?

Answer 17

breaking a market down into submarkets can lead to a business opportunity. For example, a magazine publisher can target a specialist journal at one group of customers of similar age, gender, class or income.

Question 18

What is a competitive market?

Answer 18

a competitive has many businesses trying to win the same customers. A monopoly exists when one firm has 25% or more of the market, so reducing the competition.

Question 19

What is competition in the market?

Answer 19

competition in the market can be good for customers. governments encourage competition because it can help improve these factors:

• price: if there are several retailers, each retailer will lower their price in an attempt to win customers.
• product range: in order to attract and satisfy customers.
• customer service: retailers that provide customers with a helpful and friendly service will win their loyalty.

Question 20

what is a product?

Answer 20

a product is something that is sold to customers or other businesses. customers buy a product to meet their need. this means that the firm( another name for a business) must concentrate on making products that best meet customer requirements.

Question 21

what is product differentiation?

Answer 21

The business needs to choose the function, appearance and cost most likely to make a product appeal to the target market and stand out from the competition.

Question 22

how is product differentiation created?

Answer 22

by establishing a strong brand image for goods or a service.
offering a better location, features, functions, design, appearance or selling price than rival products.
making clear the unique selling point of good or a service.

Question 23

what is a product life cycle?

Answer 23

1. launch
   2.growth
   3.maturity
   4.decline
   in the launch and growth stages, sales rise. in the maturity stage, revenues flatten out. getting a product known beyond the launch stage usually requires costly promotion activity.

Question 24

what is pricing?

Answer 24

there is a big difference between costs and prices. costs are the expenses of a business. price is the amount customers are charged for items. There are times when a business is willing to set price below unit cost. They will use this loss leader strategy to gain sales and market share.

Question 25

what is pricing new products?

Answer 25

a business can choose between two pricing tactics when launching a new product:

• penetration pricing means setting a relatively low price to boost sales. it is often used when a new product is launched.
• price skimming means setting a relatively price to boost profits. It is often used by well-known businesses launching new, high quality, premium products (promotional products e.g. toys).

Question 26

what is a place in business?

Answer 26

A place is the point where products are made available to customers. A business has to decide on the most cost-effective way to make their products easily available to customers.

Question 27

what is a retailer?

Answer 27

persuading shops to stock products means customers can buy items locally.