Understanding business

Question 1

Explain possible effects of the external factor (political) on a organisation.

Answer 1

-decrease in taxes will give customers more disposable income.
-the government could award grants, which do not need to be paid back.

Question 2

Explain possible effects of the external factors (economic) on a organisation.

Answer 2

• Interest rates could decrease , which means customers would be more likely to borrow money to buy products.
  -unemployment could be low which means prices could be raised.

Question 3

Explain possible effects of the external factors ( technological) on an organisation

Answer 3

• introducing E-commerce can lead to a worldwide market.
• social media can be used to increase customer awareness of a business.

Question 4

Justify use or market segmentation

Answer 4

-allows to establish target market.
-products are developed that suit a particular market segment
-reduces cost

Question 5

Describe use of technology in marketing

Answer 5

-social media- specific markets can be targeted.
-software -charts can be produced to analyse trends in sales.
-Email- contact stakeholders over wide geographical area.

Question 6

Methods of production

Answer 6

Job , batch and flow

Question 7

Describe job production

Answer 7

-labour intensive
- unique products.
- single product.

Question 8

Describe batch production

Answer 8

• groups of products
  -standardised batch.
• mix of capital and Labour.

Question 9

State 2 features of the equality Act

Answer 9

Makes it illegal to discriminate.
- illegal to victimise.

Question 10

Features of health safety at work act

Answer 10

• ensures equipment is safe to use.
  -provide protective clothing.
  Safety issuesemployees must report.

Question 11

Describe sales revenue

Answer 11

Income received from customers.

Question 12

Describe cost of sales

Answer 12

Amount spent on inventory

Question 13

Gross profit

Answer 13

Profit made after cost of sales I’d deducted from sales revenue

Question 14

Describe advantages of spreadsheet software

Answer 14

-use of formulas
-automatic calculator reduces human error.
-lined worksheets can be used.

Question 15

Benefits of good customer service policy

Answer 15

-enhances the organisations reputation.
-good publicity from happy customers
-loyal customers.

Question 16

How to improve customer service

Answer 16

Making sure employees are trained.
-having a customer care strategy

Question 17

Define the term stakeholder

Answer 17

A person or a group of people interested in an organisations success

Question 18

External stakeholders/sectors of economy

Answer 18

Public private third

Question 19

Example of private

Answer 19

Shareholders/owners.
Banks.
Government.
Customers.

Question 20

Example of third

Answer 20

Donors.
Recipients.
Board of trustees.

Question 21

Example of public

Answer 21

Taxpayer.
Suppliers.
NHS

Question 22

Internal stakeholders

Answer 22

Owners.
Managers.
employees.

Question 23

Influence pressure groups can have on an organisation

Answer 23

They can decide staffing levels and what new products the business will introduce.

Question 24

Influence suppliers can have on an organisation

Answer 24

They ça take industrial action , for example strike.

Question 25

Influence managers have on an organisation

Answer 25

If they are not happy with the service offered by the business , they can go elsewhere, eg rival.

Question 26

Influence lenders may have on an organisation

Answer 26

They can change prices , credit arrangements and sucount rates short notice.

Question 27

Influence employees have on an organisation

Answer 27

They can withhold the offer of a loan change interest rates to be paid on loans.

Question 28

Influence customers have on an organisation

Answer 28

They can protest and raise awareness if a business is polluting or damaging the enviroment.

Question 29

Private sector aims to

Answer 29

Turn innovative ideas into successful businesses

Question 30

Public sector aims to

Answer 30

Make good use of taxpayers money and provide services needed.

Question 31

Third sector aims to

Answer 31

Provide support for worthy causes.

Question 32

PESTEC stands for

Answer 32

Political, economic, social,technology , environmental and competitive

Question 33

Political factor

Answer 33

Laws and legislation . For example minimum wage

Question 34

Economic factor

Answer 34

Inflation rates. Exchange rates.

Question 35

Social factor

Answer 35

More women in work in todays modern times, therefore supermarkets provide ready made meals

Question 36

Technology factor

Answer 36

Increase of new technology, business must keep up to date the remain competitive

Question 37

Environmental factor

Answer 37

Businesses are more aware of the need to be environmentally friendly

Question 38

Competitive factor

Answer 38

New advertising price. Lower selling price.

Question 39

What is a sole trader

Answer 39

Q business owned by one person

Question 40

What is a partnership

Answer 40

2-20 people

Question 41

What is a private limited company

Answer 41

A company owned by people who have been invited to buy shares

Question 42

What’s a public limited company

Answer 42

Company which has public shareholders

Question 43

What’s a franchise

Answer 43

Arrangement when a firm pays for the right to trade under another name

Question 44

Advantages of sole trader

Answer 44

Easy to set up. All profits are theirs. Flexible schedule.

Question 45

Disadvantages of a sole trader

Answer 45

Alor of responsibility. Unlimited liability.

Question 46

Advantage of a private limited company

Answer 46

Limited liability. Can keeps info private.

Question 47

Disadvantages of private limited company

Answer 47

Difficult to manage. Expensive.

Question 48

Advantage of public

Answer 48

Raise money easily

Question 49

Disadvantage of public

Answer 49

Descison making is difficult

Question 50

Advantage of franchise

Answer 50

Franchiser can open more branches without having to buy premises or pay staff.

Question 51

Disadvantage of franchise

Answer 51

No control over how business is run

Question 52

What is a good

Answer 52

Something you can touch Tangiable

Question 53

What is a service

Answer 53

Something g you cannot touch Intangible

Question 54

What is the primary sector

Answer 54

Businesses that extract natural goods from earth Fishermen.

Question 55

What is the secondary sector

Answer 55

Manufacturing natural goods Shipbuilding.

Question 56

What is the tertiary sector

Answer 56

Provide a service Hairdressers.

Question 57

What is the quaternary sector

Answer 57

Provides knowledge and info services. Scientific research.

Question 58

Factors of production

Answer 58

Land Labour capital enterprise

Question 59

Land is

Answer 59

The natural resources businesses use eg wood

Question 60

Labour is

Answer 60

The workforce of the business eg employees

Question 61

Capital is

Answer 61

Man made resources eg machinery

Question 62

Enterprise is

Answer 62

An entrepreneur uses land Labour and capital to achieve an idea.