Revision for Bus man

Question 1

Explain what a good and a service is.

Answer 1

A good is something that you can take away in a bag that you buy, whereas a service is something that you’re not able to take away, it is something that someone does for you.

Question 2

Describe what durable and non-durable are.

Answer 2

Durable is a good that you can make use of more than once, for example a TV. A non duarable good is something that you can only make use of once

Question 3

State 4 reasons why people would set up in business.

Answer 3

To make money, They have a good idea that they want to expand, they have a hobby that they want to make into a business, they want to be their own boss, there’s a gap in the market, and they have been made redundent so they want to use that money.

Question 4

Name 3 business objectives of a private sector

Answer 4

• To maximise profits
• To expand / grow
• To survive
• To increase market share
• Social responsibility (taking care of the environment)
• Customer satisfaction
• To provide a good quality good or service

Question 5

Name 3 business objectives for a public sector

Answer 5

• To be efficient
• To provide a good service
• To be cost efective
• Social responsibility (e.g. protect the environment)

Question 6

Name the three sectors of economy

Answer 6

Public sector
Private sector
Third sector

Question 7

Name 3 advantages of having a good customer service

Answer 7

• Motivated and highly preforming staff
• Satisfied and loyal customers
• Customers will return to your organisation
• Customers are likely to recommend the organisation to friends or family
• The organisation would the on have a good reputation
• Organisation may gain a competitive edge
• Market share may increase

Question 8

name 3 problems with having a poor customer service

Answer 8

• Demotivated staff due to complaints
• Dissatisfied customers wont return
• Dissatisfied customers don’t recommend the organisation to family or friends
• Poor reputations are hard to turn around
• May need to spend more money to advertise to change the company image.

Question 9

Give 3 reasons why people might set up in business

Answer 9

• They might want to be their own boss
• They have been made redundant and decide to use their redundancy money to help start up their own business.
• They have an idea for a good new product or service
• They have a hobby that they feel could be a basis for a business
• They have a skill but cannot find a suitable job therefor they set up their own business

Question 10

Where do people get the idea of starting their own business

Answer 10

• Spotting a gap in the market
• Improving an already existent product
• Listening to people and finding out what they want in the area
• Using special talents or skills they have
• Developing a hobby
• Combining two or more existing products or services
• Setting out to solve a particular Problem.