Key Terms For Test 20th Novmeber 2018

Question 1

Mass Market

Answer 1

A very large market

Question 2

Niche market

Answer 2

A small market or a sub market

Question 3

Market size

Answer 3

The total sales of all firms in a given market

Question 4

Market share

Answer 4

The proportion of total market sales held by a firm or one of its brands

Question 5

Brand

Answer 5

A name or image a business gives its product to differentiate from other products in the market

Question 6

Dynamic markets

Answer 6

Markets that change over time

Question 7

Market growth

Answer 7

Increase in total market sales from eg 2017 to 2018

Question 8

Competition

Answer 8

Where rival firms compete for customers

Question 9

Risk

Answer 9

The possibility of difficulty or loss from a business activity

Question 10

Uncertainty

Answer 10

Events of which are out of control of the business.

Question 11

Innovation

Answer 11

New or improved products

Question 12

Product orientation

Answer 12

Where firms focus their efforts on making a product which they then try to sell

Question 13

Market orientation

Answer 13

Where firms focus on identifying, anticipating, and satisfying customer requirements

Question 14

Primary research

Answer 14

Where a firm gathers information for the first time eg by doing a survey

Question 15

Secondary research

Answer 15

Firms collect old data for a new purpose.

Question 16

Quantitive research

Answer 16

Involves secondary data to identify facts

Question 17

Qualitative research

Answer 17

Involves primary research to identify opinions

Question 18

Market segment

Answer 18

A small section of a market which firms use to create sales

Question 19

Market segmentation

Answer 19

Process of breaking up a market into sub markets. Each market segment is made up of customers with the same tastes, characteristics, etc.

Question 20

Market mapping

Answer 20

Process that plots two features of all products in a market.

Question 21

Competitive advantage

Answer 21

Features a business or product has which customers see as better than competitors.

Question 22

Product differentiation

Answer 22

When a business successfully distinguishes it’s products from others.

Question 23

Added value

Answer 23

Is the increase in worth a business creates for a product

Question 24

Forms of a business

Answer 24

The legal structure of of a business eg sole trader or company

Question 25

Sole trader

Answer 25

A business owned by one person

Question 26

Partnership

Answer 26

A business owned and run by 2-20 people

Question 27

Private limited company

Answer 27

A company where shares cannot be advertised or sold without permission of shareholders

Question 28

Public limited company

Answer 28

A company where shares can be advertised and sold without the permission of shareholders

Question 29

Lifestyle business

Answer 29

A business that aims to generate sufficient profit to support the way of life of the owner

Question 30

Online business

Answer 30

A business that uses the internet for trading

Question 31

Social enterprise

Answer 31

Organisations which aim to improve well being rather than profit

Question 32

Liability

Answer 32

Legal obligation to pay a debt

Question 33

Limited liability

Answer 33

Means owners responsibility for the debts of a business is restricted to the amount of investment in the firm

Question 34

Unlimited Liability

Answer 34

Means owners are personally responsible for the debts of a business.