Business paper 1 Flashcards
Enterprise?
A business that sells products or services
entrepreneurial characteristics?
Confidence
risk taker
confidence
disadvantages for risk taking
•Financial drawbacks-possibility of losing money
•health drawbacks-maintaining and starting a business is stressful
•strained relationships
advantages to risk taking
•financial reward
•independence-being your own boss
•pride and satisfaction-they have started something successful
•changing customer habits-customers pick you over competitors
sole trader?
A business owned by one person and has unlimited liability
advantages + disadvantages of a sole trader
ADVANTAGES
•unlimited liability
•easy to set up
•obtain all profit
•own boss
•own decisions
DISADVANTAGES
•unlimited liability
•long hours
•no holiday or sick pay
•investment comes from savings
partnership?
business owned by 2-20 people
Advantages + disadvantages of a partnership
ADVANTAGES
•easy to set up
•shared control
•more ideas and skills
•work load shared
DISADVANTAGES
•profits shared
•slower decision making
•responsible for each other
Aim vs objective?
Aim=long term
Objective=short term
stakeholders?
Individuals and groups that have an interest/ involvement and are affected by business activity
e.g owners, employees, customers, suppliers, government, local community
organic growth?
growth of a business internally
external growth?
growth of a business by takeover or merger
-greater financial strength, less competitors
vertical vs horizontal growth
Vertical=business takes over another business that is at a different point in supply chain e.g. a furniture company taking over a wood supplier
Horizontal=Business takes over another business that is at the same point on the supply chain e.g. furniture store with another furniture store
types of marketing
Print
digital
audio
ambient (sides of buses)
moving images/videos
influences of marketing used?
Target audience
product/service
money
business size
competition
reputation
location
Primary research?
Done by a business themselves to answer specific questions that a business may have e.g interviews, questionnaires and surveys
secondary research?
using existing data that was collected by someone else e.g. articles, newspapers and websites
quantitative vs qualitative
quantitative-data based on number and stats
qualitative-based on thoughts, feeling and emotions of individuals
types of segmentation
•geographic segmentation- target market based on geographical areas
•demographic segmentation-age, gender, race
•psychographic segmentation- personality, lifestyle, interests, opinions
•behavioural segmentation- frequency or purchases, loyalty towards a brand
price skimming vs price penetration
price skimming=high to low
price penetration=low to high
point of sale production?
designed to entice customers e.g. sales, prizes, free samples etc
types of training
on the job
off the job
induction training
organisation structure?
how human resources are organised within a business
organisation chart?
visual representation/ display of a businesses organisation structure
subordinate?
anyone who is below someone else in the hierarchy
span of control?
the number of people someone’s in charge of
superior?
anyone above someone in the hierarchy
delegate?
to give someone a task or responsibility
chain of command?
the way info is passed down through the hierarchy
spam of control types?
narrow=few subordinates, few responsibilities
wide=lots of subordinates, lots of responsibilities
chain of command types?
long=info has to be passed down through many layers
short=info has to be passed down through few layers
