Buisness

Question 1

Product

Answer 1

A product is anything that is capable of satisfying customer needs/wants

Question 2

Service

Answer 2

A service is an act that a business person carries out for you in exchange for money, You cannot “touch” a service it is “intajible”

Question 3

intajible

Answer 3

You cannot “touch”

Question 4

Risks of business activity

Answer 4

business failure, financial loss, lack of security

Question 5

Rewards of business activity

Answer 5

business success, profit, independence, not annoyed by your job, do things you are interested in

Question 6

10 main reasons business fails

Answer 6

Bad management, Lack of experience, poor financial control, bad marketing, failure to develop a strategic plan, uncontrolled growth, poor location, improper inventory control, incorrect pricing, no change in mentality to business boss.

Question 7

Some of the most common and basic expectations customers have for most businesses include:

Answer 7

1. Fast, efficient and accurate service
2. High quality products at a competitive price
3. Friendly, helpful service staff to provide information and answer questions
4. Prompt responses to their inquiries, whether online, by phone or in person
5. Sufficient stock to meet their needs without long waits
6. A trained staff that can handle their questions without referring them on
7. A clean shop or easy to navigate website

Question 8

Profit

Answer 8

wage-cost

Question 9

Demographics means

Answer 9

Demographics mean statistical data relating to the population and particular groups within it

Question 10

Revenue

Answer 10

money coming into the business through sales from goods or services

Question 11

Revenue =

Answer 11

price x quantity sold
Or
R = P x Q

Question 12

fixed costs

Answer 12

are costs that do NOT vary with the level of output or sales.
These costs have to be paid even if a business produces no products
E.g. rent, advertising, insurance

Question 13

Variable costs

Answer 13

are costs that do vary with the level of output or sales
For example: A furniture business has to pay for more wood if they make more furniture
E.g. Raw material, temporary staff wages, distribution cost

Question 14

Wages

Answer 14

Typically calculated based on an hourly or daily rate and the number of hours worked

Question 15

Salary

Answer 15

A fixed amount of money paid regularly, typically monthly or annually.