Business framework

Question 0

What is a service?

Answer 0

Something intangible.

Question 1

What is a good?

Answer 1

Something tangible.

Question 2

What is the VAT on needs?

Answer 2

20%

Question 3

What is at the primary stage?

Answer 3

Producing the raw materials.

Question 4

What is at the secondary stage?

Answer 4

Manufacturing the good.

Question 5

What is at the tertiary stage?

Answer 5

Selling the good.

Question 6

Why does a business exist?

Answer 6

A business exists to satisfy wants and needs profitably.

Question 7

What is profit?

Answer 7

Profit = revenue - costs

Question 8

What is a marketing plan?

Answer 8

A written formal plan/document.

Question 9

What is a marketing objective?

Answer 9

Where the business wants to be using strategies and methods.

Question 10

What does SWOT stand for?

Answer 10

S - strengths
W - weaknesses
O - opportunities
T - threats

Question 11

What is demographics?

Answer 11

Population, characteristics and change

Question 12

What is the land stage?

Answer 12

Natural resources.

Question 13

What is the labour stage?

Answer 13

Making the good/service.

Question 14

What is the capital stage?

Answer 14

Machinery used to produce and distribute.

Question 15

What are the motives for wanting to become an entrepreneur?

Answer 15

• wanting to set up their own business
• wanting to go into the marketing business
• wanting to make a financial profit
• wanting to make a social profit
• wanting to fill a gap in the market
• legacy
• challenging them self
• following a dream/hobby

Question 16

What are the characteristics of an entrepreneur?

Answer 16

• risk taker
• ambitious
• confident
• passionate
• committed
• hard working
• resilient

Question 17

What are the disadvantages of an entrepreneur?

Answer 17

• loneliness and isolation
• can’t blame others
• financial pressure
• hard work
• strain in family and social life
• high stress level
• needs to be able to multi-task
• roller coaster of emotions

Question 19

what are the rewards for enterprise?

Answer 19

• profits
• self-esteem
• personal development
• sense of control

Question 20

What is opportunity cost?

Answer 20

The cost of missing out on the next best thing.

Question 21

What is a stakeholder?

Answer 21

A person who has a certain objective or interest in a business.

Question 22

What is a shareholder?

Answer 22

Someone who buy a share in a business (only PLC).

Question 23

What is an internal stakeholder?

Answer 23

People who work for the business and are involved daily.

Question 24

What is an external stakeholder?

Answer 24

People who aren’t working for the business and aren’t involved day-to-day.

Question 25

List 6 internal stakeholders;

Answer 25

• customers
• creditors
• owners/shareholders
• managers
• employees
• suppliers

Question 26

List 7 external stakeholders;

Answer 26

• financial institutions
• trade associations
• competitors
• pressure groups
• society
• the Government
• local resident/community

Question 27

How do you work out gross profit?

Answer 27

gross profit = sale of price - cost of sales

Question 28

How do you work out net profit?

Answer 28

net profit = gross profit - overhead

Question 29

How do you work out retained profit?

Answer 29

profit before tax - dividends

Question 30

What is revenue?

Answer 30

Money coming into the business

Question 31

What is companies house?

Answer 31

Where you go to register your business.