Business Flashcards
What is an entrepreneur
Someone who owns there own business
What is limited liability
When you are at risk of loosing ONLY things related to your business
Three qualities a entrepreneur would have
Confidence , approachable , determination
Three skills an entrepreneur would have
ICT , numeracy , leadership
What is unlimited liability
Personal belongings can be taken from you
What are the three sectors of industry
Primary
Secondary
Tertiary
Describe primary
Land/natural resources
Eg mining , fishing
Describe secondary
Using the materials from primary to create goods
Eg house, paper
Describe tertiary
Providing a service
Eg hairdresser, schools
What are the three sectors of the economy
Public , private and third
Describe private
Owned by private individuals
Eg Tesco , Asda
Describe public
Government owns
Eg schools , NHS
Describe third
Charities and social enterprises
Eg cancer research
Name the four types of business organisations
Sole trader
Partnership
Private limited company
Public limited company
What is a sole trader and name an advantage and disadvantage
Business owned by one person
Advantage - can keep all profit
Disadvantage - long working hours
What is a partnership and name an advantage and disadvantage
A business owned by 2-20 people
Advantage - shared workload
Disadvantage - shared profits
What is a private limited company and name an advantage and disadvantage
Family and friends buy your shares
Advantage - limited liability
Disadvantage - have to register =£
What is a public limited company and name an advantage and disadvantage
The public buy your shares on the stock market
Advantage - money quicker , limited liability
Disadvantage - loss of control
Sole traders, partnerships , Ldt and Plc are all in what sector
Private
What are three things a business needs to satisfy their customers
Good service , good prices , up to date fashion/products
What is a satisfied customer
The customer will return and recommend the company
how can you keep customers loyal
Loyalty and points cards
How can you attract new customers
Advertising and promoting or recommendations from existing customers
What is bad publicity and what will it lead too
Customers bad experiences
Leaving bad reviews
This will lead to a poor reputation
What is market research
Business use market research to identify what the customers need or want
What are the two types of market research
Desk and field
What is desk research
All research is done at a computer and the information already exists
What is field research
Gather the information face to face
Getting the information first hand
Name an advantage and disadvantage of desk research
Advantage - receive the information right away
Disadvantage - not always accurate
What are the 4p’s
Price , place , product and promotion
Name an advantage and disadvantage of field research
Advantage - accurate information
Disadvantage - takes longer to gather the information
What is place
Where the products/goods are sold
What is price
The amount payed for the product or service
What is promotion
How you promote the good or service
Eg billboards and social media
What is product
The actual good or service purchased buy the customer/consumer
What is advertising divided into and give example
Digital eg - online , email
Traditional eg - radio, billboards
Name three types of promotional strategies
Celebrity endorsement
Sales promotion
Special offers
Name three special offers
Loyalty cards
BOGOF
Discounts
What are examples of extension strategies for the 4p’s
Product- introduce a new version
Price- reduce the pricing
Promotion- introduce a new advertising campaign
Place- change where it can be bought
What is brand loyalty
When a customer is loyal to a particular brand they will continue to buy that brands associated products
What is quality
Businesses have to ensure of good quality to make sure to satisfy customer needs and give good value for money
What is quality control
Making sure the standard of the product meets the customers expectations AFTER the product is finished
What is quality assurance
Making sure the product meets the customers expectations after EACH STEP of the production
What is quality circles
When a group of workers discuss to solve production problems
What is benchmarking
Discovering the best methods or productions
What are the four main functional areas in a traditional business model
Marketing
Finance
Operations
Human Resources
What is marketing
Collecting information on customers preferences for particular goods or services
What are operations
How the business changes the raw materials into the finished products
What are Human Resources
Describes the people who work in the business
What is finance
The department responsible for the money in a business
What is administration
The backbone of any organisation
Responsible for typing , filing and organising meetings
