POB studying

Question 1

what is production

Answer 1

the process of using materials and transforming in a way to produce goods and services for the needs of customers

Question 2

Identify 2 factors of production using the manufacture of goods and production of services

Answer 2

Land and labour

Question 3

Define the term capital

Answer 3

resources used by a business such as machines and equipment used in the production of goods and services

Question 4

what is fixed capital and example

Answer 4

assets such as buildings machinery and computers which will be kept for a long time and used many times in the production process.

Long-lasting assets used repeatedly in production processes which includes buildings, machinery, and computers.
E.G

Question 5

what is working capital and example

Answer 5

stocks of materials, goods and cash needed for the day to day running of the business

Question 6

explain two factors that contributes to increase productivity within a business

Answer 6

Efficient use of resources: One factor that contributes to increased productivity within a business is the efficient use of resources. This means effectively utilizing the available resources such as raw materials, equipment, technology, and human capital.

Employee motivation and engagement: Another factor that significantly contributes to increased productivity is employee motivation and engagement. When employees feel motivated and engaged in their work, they are more likely to perform at a higher level and put in extra effort to achieve organizational goals.

Question 7

explain 2 ways in which increase of productivity makes an advantage of a small business

Answer 7

cost saving : when a small business improve its productivity it can achieve cost saving by reducing waste and optimizing resources, a business can reduce its operational expenses

improved customer satisfaction, higher productivity often leads to customer satisfaction, satisfied customers are mostly likely to be repeat customer or refer others and create growth opportunists and increase sales in a small business

Question 8

explain hire purchase and layaway

Answer 8

Hire purchase is a type of installment plan where a buyer pays for a product or service in regular installments over a specific period of time.

Layaway is a way to buy something through installments. The buyer reserves the item with a deposit and pays the full price over time.

Question 9

• describe 2 factors that influence the spending behavior of consumers

Question 10

describe the links and trade distribution for the products

Answer 10

getting the right product to the right consumer at the right time in a way that is most convenient to the customer is a good definition of distribution. the term often used to refer to all business involved in getting product onto the shelf the - manufacture wholesaler, transporter and retailers are a is the supply chain

Question 11

state 2 methods of promoting sales

Answer 11

Advertising: This includes using various mediums such as television, radio, print media, online platforms, and social media to create awareness and generate interest in the products or services.

2. Sales promotions are temporary incentives like discounts, special deals, or added value to motivate customers to buy. Examples include buy one, get one free offers, limited-time discounts, loyalty reward programs, free samples, contests, and giveaways. They are used to boost sales during specific periods or clear out excess inventory.

Question 12

define the term brand name

Answer 12

an identifying symbol, colour, name, image or trade mark that distinguishes a product from those of its competitors

Question 13

what are the form of packaging

Question 14

state 2 purposes of packaging

Answer 14

to protect the product and ensure it is received by the costumer undamaged and in one piece

suitable for easy handling and transportation

Question 15

outline the 2 methods which vendors could implement to promote sales

Answer 15

advertising, sales promotion and discounts

Question 16

describe 2 techniques using selling

Answer 16

Upselling is a technique where vendors encourage customers to purchase a higher-priced product or upgrade their existing purchase.

Cross-selling involves offering customers additional or complementary products that go well with their initial purchase.

Question 17

explain 2 ways in which the existence of copyright law is likely to influence the actions of the visible consumers

Answer 17

customer purchasing behaviour: the existence of copy right law influence the action of visible of consumers impacting their purchasing behavoiur. copy right law protects the rights of authors, artists and creators by granting them exclusive rights to their creations

copy right law encourage people to find creative alternative than relaying on copyrighted content. this can motivate them to create their own original work

Question 18

outline 2 function of small business

Answer 18

Economic contribution: Small businesses play a vital role in the economy by creating jobs and driving economic growth. They often provide employment opportunities for local communities

Local community support: Small businesses often have a strong connection to the local community in which they operate. They tend to understand the unique needs and preferences of the local population .

Question 19

explain 2 benefits associated with growth of a business

Answer 19

Business growth can lead to increased profitability because it allows the business to access new markets and reach a larger customer base, resulting in higher sales. a larger business can benefit from economies of scale.

As a business expands and gains more visibility, it can improve its brand recognition and reputation. This leads to increased customer attraction and loyalty.

Question 20

explain 2 challenges associated with the growth of the business

Answer 20

Scalability is the challenge of expanding business operations to handle increased demand. It requires investing in resources, infrastructure, and workforce for growth.

Maintaining brand reputation becomes challenging as businesses grow. Increased brand recognition raises customer expectations, and failing to meet them can lead to negative reviews and a damaged brand image.

Question 21

explain backward linkage

Answer 21

Backward linkage refers to when an industry uses products from earlier stages of the production chain. For example, the oil extraction industry acquiring equipment from oil-drilling rig manufacturers.

Question 21

explain forward and example

Answer 21

Forward linkage occurs when an industry’s products are used by businesses further ahead in the production chain. For instance, when processed foods like canned fruit are supplied to the retail industry.

Question 22

2 characteristics of cotton industry

Question 23

outline 1 disadvantage of small business

Answer 23

Small businesses struggle with limited financial resources, which hampers their investments in technology, equipment, and marketing

Question 24

list 4 marketing activities

Answer 24

advertising, sales promotion, distribution, pricing, branding, packaging, market research

Question 25

outline 4 elements of the traditional marketing mix

Answer 25

product, price, promotion,place

Question 26

differentiate between capital intensive production and labor intensive production

Answer 26

capital intensive production methods using more capital equipment than other factors of production such as labour equipment while labour intensive production uses more labour equipment than other factor of production such as capital equipment

Question 27

explain 2 ways in which packaging gets in the marketing mix

Answer 27

Packaging is an important component in presenting and showcasing a product to customers. It visually communicates the brand identity, product features, and benefits.

Packaging serves the purpose of protecting the product during transportation, storage, and handling.