Business unit 1

Question 1

who owns private limited companies

Answer 1

share holders

Question 2

To become a share holder you must…

Answer 2

…be invited to buy shares in it

Question 3

Private limited companies are controlled by …

Answer 3

board of directors

Question 4

What are dividends?

Answer 4

The process in which profits are divided amongst share holders

Question 5

List public sector factors

Answer 5

Good boy
-Owned by the government
-Controlled by elected officials e.g. MSP’s, -Councillors
-Primarily funded through taxation

Question 6

Give examples for CELL

Answer 6

Capital: Money, tools, equipment
Enterprise: Ideas behind a business
Land: Natural resources
Labour: workforce

Question 7

Examples for Market research uses?

Answer 7

-identifying what the target markets should be for their products or services;
-finding out what the target market’s needs and wants are so as to design products that satisfy them;
-finding out how much the target market would be willing to pay for products so as to set appropriate pricing;
-gathering information about competitors, allowing them to gain competitive advantages.

Question 8

What is field research?

Answer 8

involves a business gathering brand new information themselves using methods such as face-to-face interviews and focus groups. This type of research collects primary information.

Question 9

desk research is?

Answer 9

involves the use of pre-existing data that has been gathered by someone else. This type of research collects secondary information.

Question 10

Methods of field research

Answer 10

-personal interview
-telephone survey
-Postal survey
-Online survey
-Hall test
-Focus group