Introduction To Business

Question 1

What is an entrepreneur?

Answer 1

Someone who sets up a business//expands a business

Question 2

What are the characteristics of an entrepreneur? Name 2

Answer 2

Creativity
Hard working
Resilience
Initiative
Self confidence
Risk taking

Question 3

What is market research?

Answer 3

gathering information on how consumers purchase goods and purchases

Question 4

What is primary market research?

Answer 4

collecting new data

Question 5

What is secondary market research?

Answer 5

research has already been collected

Question 6

What is an example method of primary market research?

Answer 6

focus groups
questionaires
observations

Question 7

What is an example method of secondary market research?

Answer 7

company reports
sales statistics
loyalty card data

Question 8

What is qualitative data?

Answer 8

an in depth worded response

Question 9

What is quantitative data?

Answer 9

a statistical response

Question 10

What is product orientation?

Answer 10

focusing on developing the product

Question 11

What is market orientation?

Answer 11

focusing on customers wants and needs

Question 12

What are the 5 examples of differentiation?

Answer 12

distinctive design
branding
performance
exceptional customer service
ethical product/service

Question 13

What is market mapping?

Answer 13

a visual representation of how current businesses are perceived in the market - customer pov

Question 14

What are the 4ps?

Answer 14

PRODUCT - developing the product
PRICE - strategy regarding price
PROMOTION - advertisement
PLACE - where the product is sold

Question 15

What are the 4 sectors of market segmentation?

Answer 15

geographic
demographic
psychographic
behavioural

Question 16

What is the demographic segment?

Answer 16

factual information about a person
age, gender, sex, family, education, income

Question 17

What is the geographic segment?

Answer 17

where the customers live
countries, nations, states, regions, cities, neighbourhoods

Question 18

What is the psychographic segment?

Answer 18

hobbies, beliefs, attitudes

Question 19

What is the behavioural segment?

Answer 19

shopping patterns, purchasing behaviour, loyalty

Question 20

PESTLE

Answer 20

Political
Economical (changes in income - inflation)
Social (change in trends)
Technological
Legal
Environmental

Question 21

What is the design mix?

Answer 21

aesthetics (how a product appeals to the 5 senses)
function (R&D)
economic manufacture (how cheap a business can make it)

Question 22

What is a business plan?

Answer 22

document that illustrates the thought processes of the start up business or future planning of an established business

Question 23

What would a business plan include?

Answer 23

1. executive summary
2. target market
3. competitors
4. human resources
5. vendors/supplies
6. marketing plan
7. operations
8. financial projections

Question 24

What is a sales forecast?

Answer 24

estimate the likely number of a product that will be sold by the business or market over a future period

Question 25

What is cash?

Answer 25

the money the business has available to spend here and now

Question 26

What happens if a business runs out of cash?

Answer 26

may need to sell non current assets
disrupts business operations

Question 27

What is a cash flow forecast?

Answer 27

a financial tool that helps businesses estimate the amount of money they expect to flow in and out of their bank account within a specific period

Question 28

What is trade credit?

Answer 28

business is given credit from their supplier - allows the business to receive product/raw material then they sell it which leads to cash inflow

Question 29

What is break-even?

Answer 29

number of units or customers a business needs to sell so the revenue matches the costs - no profit or loss

Question 30

Ways to improve break-even?

Answer 30

increase selling price = increase total revenue// increase CPU
decrease variable cost = increase CPU// decrease total costs
decrease fixed cost = decrease total costs

= requires less units to be sold to break-even = less likely to make a loss