Business Basics Flashcards
1
Q
What are the two ways businesses come about?
A
- Gaps on the market (new ideas)
- Adapting existing ideas
2
Q
What is revenue and its equation?
A
- Money recieved from sales
- Quantity sold x price
3
Q
What is profit and its equation?
A
- money remaining after costs
- revenue - costs
4
Q
What is a brand?
A
An emotional connection, the experience
5
Q
What are the customer needs?
A
- Choice
- Convenience
- Price
- Quality
6
Q
What is a target market?
A
- who the product is aimed at, often by age, gender, lifestyle
7
Q
What structure should you use to answer 3 mark questions?
A
P point
B because
L leads to
T therefore
8
Q
What risks are associated with setting up a business?
A
- Business failure
- Financial loss
- Lack of security
9
Q
Rewards associated with setting up a business
A
- Profit
- Independence
- Business success
10
Q
Define Entrepreneur
A
An individual that takes a risk, organises resources and makes decisions
11
Q
Define USP
A
Unique selling point
12
Q
What is added value?
A
The difference between costs and price
13
Q
What are some reasons for business failure?
A
- Lack of market research or planning
- Poor management
- Lower than expected sales
- Startup costs too high
- Unexpected shocks
- Not meeting customer demands
- Too reliant on small amount of customers
14
Q
What are some financial aims of businesses?
A
- Survival
- Profit
- Market share
- Sales
- Financial security
15
Q
What are some non-financial aims of businesses?
A
- Social objectives
- Personal satisfaction
- Challenge
- Independence and control
