Business In The Real World

Question 1

What is a business?

Answer 1

An organisation that produces a good or supplies a service

Question 2

Examples of a business

Answer 2

ASDA, which sells food and other goods for money

Eletrician goes to customer’s houses and fixes their electrics in return for money

Question 3

Examples of a product

Answer 3

Cars

Washing machines

Mobile phones

Question 4

A service

Answer 4

an act that a business person carries out for you in exchange for money

Question 5

Examples of a service

Answer 5

Accountancy

Travel agents

Cleaning

Question 6

4 factors of production

Answer 6

Land – somewhere to produce the goods

Labour – people to work in the business

Capital

Enterprise

Question 7

Reasons for starting a business

Answer 7

To produce goods

To supply a service

To distribute products

Question 8

How social enterprises help people

Answer 8

Aim to tackle the effects of poverty

Provide jobs and tackle unemployment

Help children with a social need

Question 9

How social enterprises can help the planet

Answer 9

Reduce pollution

Tackle deforestation

Halt climate change

Question 10

Primaty sector

Answer 10

extracts raw materials from the planet

Mining materials, chopping down trees for wood

Question 11

Secondary sector

Answer 11

Goods are manufactured from raw materials into finished goods

Question 12

Examples of a secondary sector

Answer 12

Plastic

Metal

Other materials made into cars

Question 13

Tertiary sector

Answer 13

concerned with providing services for its customers

Question 14

Examples of teritary sectors

Answer 14

Lorries and transport of goods

Question 15

Entreprenueur

Answer 15

A person who starts a business and takes on financial risk in the hope of making a profit

Question 16

Business Initiative

Answer 16

internal campaigns in companies set out to achieve certain goals

Question 17

What can businesses use social media for

Answer 17

Attract customers

Get customer feedback

Increase your market reach

Question 18

Inflation rates

Answer 18

The rates of increase in prices for goods and services

Question 19

Interest rates

Answer 19

the cost of borrowing money or the return for investing money

Question 20

Why would anyone want to be an entrepenuer

Answer 20

They want to keep all profits of a business for themselves so they can earn more money

They have an interest or obby which grows into a business

They want to be their own boss and make their own decisions instead of being employed and reporting to someone else

Question 21

Entrepenuership

Answer 21

Refers to the ability to be an entrepenuer to take risks to develop a business idea

Question 22

Social enterprise

Answer 22

A business set up to help society rather than to make a profit

Question 23

What is a good

Answer 23

physical products that are either purchased or produced for the purpose of being sold

Question 24

Customer

Answer 24

Someone who buys a product

Question 25

How to make a business successful

Answer 25

When it can meet the needs and wants of customers effectively

Question 26

Consumer

Answer 26

Someone who uses goods and services produced by businesses

Question 27

Opportunity cost

Answer 27

something that is given up in order to do something else

Question 28

Example of opportunity cost

Answer 28

this could be when a business must choose between two different office locations

they will face opportunity costs for the location they do not choose

Question 29

How do inflation rates affect businesses

Answer 29

by supply pressure as they pay more to buy materials and products

Question 30

How do intrest rates affect a business?

Answer 30

Rising interest rates make your business debt more expensive

Question 31

What are the unemployment rates

Answer 31

the percentage of people in the labour force that are unemployed

Question 32

What impact do unemployment rates have on businesses

Answer 32

For many businesses, this will result in lower sales as people spend less

Question 33

What are exchange rates?

Answer 33

A rate at which one currency will be exchanged for another currency

Question 34

How do exchange rates impact a business?

Answer 34

By changing the attractiveness of their products to overseas customers

Question 35

Capital

Answer 35

money to get the business started

Question 36

Enterprise

Answer 36

drive or motivation from the owners to start a business

Question 37

3 methods of external growth a business could choose

Answer 37

Merge

Takeover

Franchise

Question 38

Explain one benefit to a business of using part-time staff

Answer 38

Flexibility to cover breaks and holidays

Question 39

Explain one benefit of providing induction training for employeees

Answer 39

new recruits become productive as quickly as possible

Question 40

What does the term RECIPE stand for?

Answer 40

R-aw materials,E-mployment,C-competitors,I-nfrastructure,P-roximity to market,E/F-inance

Question 41

What does the term SIC stand for?

Answer 41

Sales,Image,Costs

Question 42

What is a stakeholder?

Answer 42

A stakeholder is someone who has an interest in a business, like employees, customers, or shareholders. They can influence or be affected by the business’s decisions.

Question 43

What does business planning include?

Answer 43

Market research,financial forecast,external pressures,sales and marketing,production process,human resources

Question 44

What is franchising?

Answer 44

Franchising is a business arrangement where a franchisor grants a franchisee the right to sell its products or services using the franchisor’s brand and business model. The franchisee pays fees and royalties to the franchisor in exchange for this right.