paper 1 Flashcards
What is the primary objective of a business?
To generate profit by providing goods or services.
True or False: A sole trader is a business owned by one person.
True
Fill in the blank: A __________ is a business owned by two or more people.
partnership
What is a limited company?
A business structure where the owners’ liability is limited to their investment.
What are the four factors of production?
Land, labor, capital, and entrepreneurship.
What is market research?
The process of gathering, analyzing, and interpreting information about a market.
Multiple Choice: Which of the following is a primary research method? A) Surveys B) Internet research C) Industry reports
A) Surveys
What is a business plan?
A document outlining a business’s goals, strategies, and financial forecasts.
True or False: Cash flow is the movement of money into and out of a business.
True
What is the difference between fixed costs and variable costs?
Fixed costs do not change with production levels, while variable costs do.
Fill in the blank: __________ is the process of creating goods and services.
Production
What is a SWOT analysis?
A tool for assessing strengths, weaknesses, opportunities, and threats.
Multiple Choice: Which of the following is NOT a type of market segmentation? A) Demographic B) Geographic C) Random
C) Random
What is the purpose of advertising?
To promote products or services to increase sales.
True or False: A brand is a name, term, or design that identifies a seller’s goods.
True
What does ‘USP’ stand for in marketing?
Unique Selling Proposition
Fill in the blank: __________ pricing is setting a high price to create a perception of quality.
Premium
What is the role of a manager?
To plan, organize, lead, and control resources to achieve organizational goals.
Multiple Choice: What is the main goal of human resource management? A) Increase production B) Manage employee relations C) Reduce costs
B) Manage employee relations
What is motivation in the workplace?
The process that initiates, guides, and maintains goal-oriented behaviors.
True or False: The ‘4 Ps’ of marketing are Product, Price, Place, and Promotion.
True
What is customer service?
Support offered to customers before, during, and after purchasing products.
Fill in the blank: __________ is the process of creating customer loyalty through positive experiences.
Customer relationship management
What is the purpose of financial statements?
To provide an overview of a company’s financial performance and position.
Multiple Choice: Which financial statement shows a company’s profits and losses? A) Balance sheet B) Income statement C) Cash flow statement
B) Income statement
What is a market economy?
An economy where supply and demand determine prices and production.
True or False: An entrepreneur is someone who starts and runs their own business.
True
What is competition in business?
The rivalry between companies to attract customers.
Fill in the blank: __________ is a strategy to increase market share by acquiring a competitor.
Merger or acquisition
What is corporate social responsibility (CSR)?
A business model that helps a company be socially accountable.
Multiple Choice: Which of the following is a disadvantage of being a sole trader? A) Full control B) Unlimited liability C) Easy to set up
B) Unlimited liability
What is a target market?
A specific group of consumers a business aims to reach with its products.
True or False: E-commerce refers to buying and selling goods over the internet.
True
What is supply chain management?
The management of the flow of goods and services from origin to consumer.
Fill in the blank: __________ are the costs associated with producing goods or services.
Production costs
What is a business’s mission statement?
A declaration of the organization’s core purpose and focus.
Multiple Choice: Which concept refers to the ability of a business to maintain its operations? A) Sustainability B) Profitability C) Scalability
A) Sustainability
What is the role of a board of directors?
To oversee the management and make decisions on behalf of shareholders.
True or False: A franchise is a type of business model where one party licenses the use of its brand to another.
True
What is the break-even point?
The level of sales at which total revenues equal total costs.
Fill in the blank: __________ analysis helps businesses understand their internal and external environments.
PESTLE or SWOT
What is an investor?
An individual or entity that allocates capital with the expectation of a future financial return.
Multiple Choice: Which of the following is NOT a method of raising capital? A) Loans B) Selling shares C) Increasing taxes
C) Increasing taxes
What is product differentiation?
The process of distinguishing a product from others to make it more attractive.
