Business Studies

Question 1

Business

Answer 1

A business is an organisation which trades to make money

Question 2

Product

Answer 2

A product is anything that is capable of satisfying customer needs, it is tangible and can be touched

Question 3

Service

Answer 3

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

Question 4

Factors of production

Answer 4

Land, Labour, capital and enterprise

Question 5

The primary sector

Answer 5

The primary sector extracts raw materials from the planets

Question 6

Secondary sector

Answer 6

In the secondary sector goods are ma raw materialsdidnndnxmmsksoe into finished goods

Question 7

Tertiary sector

Answer 7

The tertiary sector is all the support services for businesses

Question 8

Sole trader

Answer 8

This is a person that owns 100% of the business

Question 9

Partnership

Answer 9

When two or more owners of a business make a new business together

Question 10

Private limited company (Ltd)

Answer 10

This is a company that doesnt have shares

Question 11

Companies house

Answer 11

Any limited company or partnership business has to register with Companies house. These records are public and there is usually a fee to register

Question 12

Deed of partnership

Answer 12

A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners

Question 13

Dividends

Answer 13

A sum of money paid regularly by a company to its shareholders out of its profits

Question 14

Economies of scale

Answer 14

Where the average costs (of production, distribution and sales fall as the business increases the amount of product that it produces, distributes and sells.

Question 15

Grant

Answer 15

A grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back

Question 16

Hostile takeover

Answer 16

A takeover of one company (called the ‘target company’) by another (called the ‘acquirer’) that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved

Question 17

What is a consumer?

Answer 17

An individual who purchases goods or services

Question 18

What is a business plan?

Answer 18

A business plan is made up by several sections:
The business idea, the business aims and objectives, target market, revenue forecast, peojected costs and profit, cash flow forecast, sources of finance, location and marketing mix.

Question 19

What is the business idea?

Answer 19

what product or service the business will provide (this is usually the first section of a business plan)

Question 20

What us the target market?

Answer 20

determined through market research

Question 21

What is a businesses aims and objectives?

Answer 21

using the
SMART
principles

Question 22

What are the sources of finance?

Answer 22

long-term and short-term finance

Question 23

What is the locstion of a business?

Answer 23

It is where a business will be located

Question 24

What is the marketing mix?

Answer 24

The four Ps (product, price, place and promotion)