theme 1-page 18

Question 1

what is meant by ‘competition’

Answer 1

when businesses sell very similar products and services that are difficult to differentiate

Question 2

what decisions would a business make due to competition

Answer 2

-improving efficiency
-giving special offers
-lowering prices

Question 3

what are the drawbacks of a competitive market

Answer 3

-lower prices=lower profit margins
-need to monitor competitors closely

Question 4

define a businesses aim

Answer 4

general goals set.This can be the business’s reason for existence

Question 5

define a businesses objectives

Answer 5

the building blocks to reach the aim.Objectives can be financial or non financial

Question 6

name 3 business financial objectives

Answer 6

-profit
-financial security
-survival

Question 7

name 3 business non-financial objectives

Answer 7

-personal satisfaction
-independence
-customer satisfaction

Question 8

why do businesses differ in aims and objectives

Answer 8

businesses operate in different sectors and vary in scale and size e.g small business will aim for survival