Business studies TERM 1

Question 1

who is an entrepreneur?

Answer 1

Someone whor organizes and operates in a business/businesses taking financial risk to do so.

Question 2

What are the characteristics of an entrepreneur?

Answer 2

positive attitude
determination
leadership qualities
innovative
self motivitatio
risk taking

Question 3

reasons for business failure

Answer 3

poor human resources
poor management
poor location
increased competition
lack of finance

Question 4

why do government support start-up businesses?

Answer 4

increased competition
increse employment
increased econoimc growth
help them survive

Question 5

how do government support businesses

Answer 5

organize advice
provide low cost premises
give grants
give tax breaks

Question 6

what is a business plan?

Answer 6

a business plan is a document that consists of the aims and objectives of a business

Question 7

what are the contents of a business plan

Answer 7

location of business
product or services
finance
company description
market analysis

Question 8

What are the reasons why firms wish to grow?

Answer 8

to increase future profit
to increase makert share
to be able to survive in an increasingly competitive market

Question 8

what are the importance of business plan?

Answer 8

to undrstand the possibe risks
it provides a checklist
it helps to know about the aims and objectives of the business

Question 9

what are the ways a business can expand?

Answer 9

internal growth and external growth

Question 10

what is internal growth?

Answer 10

internal growth is when a business invests in existing products or by developing new ones

Question 11

what is external growht?

Answer 11

this involves a greater sum of money and can take place through the use of merger or takeover.

Question 11

what is a merger?

Answer 11

a merger is when two simarly sized companies come togtether to create another company usually with a different name.

Question 12

what is a takeover?

Answer 12

A takeover is when one company purchases another and becomes the new owner

Question 13

what are the three types of integrations?

Answer 13

vertical
horizontal
conglomerate

Question 13

what is vertical integration?

Answer 13

when one firm merges or takes over another in the same industry at a different stage of production.

Question 14

what is forward vertical integration?

Answer 14

forward vertical integration is when a business merges or takes over a business which takes it nearer to the customers

Question 14

what is backward vertical integration?

Answer 14

this is when a business merges or takesover another firm in the same industry which takes the first business nearer the source of raw materials.

Question 15

what are the advantages of backward vertical integration?

Answer 15

the merger gives an assured suply of important components
the supplier could be prevented from supplying other companies
cost of components and supplies for the manufacturer could be controlled

Question 16

what are the advantages of forward vertical integration?

Answer 16

the profit made by the retailer is absorbed by the expanded business
the retailer could be prevented from selling competitors products
information about the conusmer needs and wants can be odtained directly

Question 17

what is conglomerate integration?

Answer 17

This is the takeover or merge with another firm in a different in a completely different business.

Question 18

what are the advantages of conglomerate integration

Answer 18

diversify risks
creates new markets
transfer of ideas

Question 19

what are the disadvantages of conglomerate?

Answer 19

culture clash
inexperiance can lead to mismanagement
lose focus

Question 20

who wants to measure the size of the business and why?

Answer 20

government-