Making the start-up effective

Question 1

Marketing mix

Answer 1

The combination of factors which help the business to take into account customer needs when selling a product – usually summarised as the 4 Ps, which are price, product, promotion and place

Question 2

The amount of money customers have to give up to acquire a product

Answer 2

Price

Question 3

Product

Answer 3

The amount of money customers have to give up to acquire a product

Question 4

Promotion

Answer 4

Communication between the business and customer, making the customer aware that the product is for sale, telling or explaining to them what is the product, making the customers aware of how the product will meet the customers’ needs and persuading them to buy it for the first time or again.

Question 5

Place

Answer 5

The way in which a product is distributed – how it gets from the producer to the consumer

Question 6

Sole Trader

Answer 6

The only owner of the business which has unlimited liability

Question 7

Unlimited Liability

Answer 7

A legal obligation on the owner of a business to settle (pay off) all debts of the business. In law there is no distinction between what the business owes and owns and what the business owns and owes.

Question 8

Limited Liability

Answer 8

When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company.

Question 9

VAT(Value Added Tax)

Answer 9

A tax on the value of sales: it is paid by businesses to government.

Question 10

A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.

Answer 10

Income Tax

Question 11

Customer Sevice

Answer 11

The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.

Question 12

A measure of how much products meet customers’ expectations.

Answer 12

Customer Satisfaction

Question 13

Corporation Tax

Answer 13

A measure of how much products meet customers’ expectations.

Question 14

Repeat Purchase

Answer 14

Orders or sales that occur from customers who have bought the product or service in the past.

Question 15

An individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful.

Answer 15

Stakeholder

Question 16

HM Revenues and Customs (HMRC)

Answer 16

The government authorities in the UK responsible for collecting tax.

Question 17

National Insurance Contributions (NICs)

Answer 17

A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.