Understanding Business

Question 0

Sectors of the economy

Answer 0

Private, public, third sector

Question 1

What are the key objectives of a business?

Answer 1

To make a profit and keep customers satisfied

Question 2

Explain the objectives of a private sector business and who are in it?

Answer 2

It’s is made up of individuals working by the self as well as a single person working to make a profit

Question 3

Explain the pulpit sector objectives and who are in it?

Answer 3

The public sector is made up of organisations set up by the government to provide services to the public like the NHS

Question 4

Explain the third sectors objectives and who is in it?

Answer 4

This is made up of charities and voluntary groups, that provide service that the public and private sector do not

Question 5

What is a sole trader?

Answer 5

Is when one person owns a business

Question 6

Describe the advantages of being a sole trader?

Answer 6

Make a decisions
Keep all profits
Doesn’t have to answer to anyone

Question 7

Describe the disadvantages of being a sole trader

Answer 7

Can be stressful

Unlimited liability is hard to raise finance

Question 8

What is a partnership?

Answer 8

When 2-20 people own a business

Question 9

What are the advantages of being a partnership?

Answer 9

Share responsibilities and work load
Less stressful
People have different knowledge and experiences and can share it

Question 10

What is the disadvantages of a partnership?

Answer 10

Has to share profits
Can have disagreements
Had unlimited liability

Question 11

What is a private limited company?

Answer 11

Is a business organisation owned by shareholders

Question 12

A private limited company has?

Answer 12

Limited liability - shareholders only lose the money they have invested in the business

Question 13

What are the advantages of a private limited company

Answer 13

Owned by more than one person so share knowledge and responsibility

Question 14

What is the third sector objectives?

Answer 14

To relieve poverty
To advance education
To advance religion

Question 15

What is the business cycle?

Answer 15

Consumers have needed and wants
Businesses find out needs and wants by carrying out market research
They then produce goods and services

Question 16

What are the factors of production?

Answer 16

CELL

Question 17

Capital?

Answer 17

This is the machinery used to make the goods and services

Like- tools and machinery

Question 18

Enterprise?

Answer 18

This is the entrepreneur that spots a gap in the market and makes goods and services to cover it the develop ideas

Question 19

Land?

Answer 19

The natural resources to produce the goods and services

Like - oil, fish etc

Question 20

Labour?

Answer 20

This is the human resources, the employees to help produce the goods and services

Question 21

Why is customer satisfaction so important to a business?

Answer 21

Because if the customers are treated well the are more likely to revisit the business again.
Recommend it too people
Won’t make complaints

Question 22

What are things that upset customers?

Answer 22

Talking to a employee who doesn’t know what they are doing

Question 23

What should a businesses do to make sure there customers will be happy with there purchase?

Answer 23

Develop a customer complaints procedure so they can fix the problem ASAP

Question 24

What happens if customers are loyal to a business?

Answer 24

They will help make the business more profitable

Question 25

What is the purpose of the customer care strategy?

Answer 25

To tell customers what the business promises

Question 26

5 steps that ensure customer satisfaction?

Answer 26

Train employees High quality goods and services Delivery on time Good customer support

Question 27

What is internal factors?

Answer 27

Factors that a business have control over

Question 28

What is external factors?

Answer 28

Factors the business doesn't not have control over

Question 29

Internal and external factors impacting a business are?

Answer 29

``` P- political E- environmental S- social T- technology C- competitors ```

Question 30

How does the political factors impact the business and what factor are they?

Answer 30

This is a external factor Business have to abide by laws, and they have to pay taxes this can effect the money they make

Question 31

Environmental factors?

Answer 31

This is a external factor This is natural things that happen within the earth that can effect a business like weather natural disasters

Question 32

Social factors?

Answer 32

This is a external factor This is when a business has to adapt to society so they can survive If people are much more aware of echo issues businesses may make use recyclable materials

Question 33

Technology factors?

Answer 33

This is a internal factor This is they technology used within a business It can impact a business by replacing employees

Question 34

Economic factors?

Answer 34

This is how the world is doing, The levels or employment meaning less demand for their products This will lead to lower sales and profits If there is a boom or recession Exchange rates

Question 35

Competition factor?

Answer 35

Most business will have competition on the market. This will effect sales as competition might be better Introduce special offers to out smart competition Businesses will make sure they encourage customer to buy from them not competition

Question 36

What is a boom?

Answer 36

This is when the economy grows rapidly | Most businesses start to have a increase with profits and develop new products because people can afford them

Question 37

A recession is?

Answer 37

When the economy declines Unemployment increases People have less money to spend and this effects businesses because they are not spending money in there business

Question 38

What are stakeholders?

Answer 38

These are people or groups who have a influence or interest in a business

Question 39

What is the effect of finance on a businesses

Answer 39

The amount of money a business has can effect there objectives and if they can meet there goals

Question 40

Human resources bring to the business?

Answer 40

New knowledge and ability and skills

Question 41

Owners have what influences and interests In a business?

Answer 41

This Is internal Influence - make decisions for the business, can invest money or take out money of the business Interest- share of profits

Question 42

Shareholders interest and influences on a business are?

Answer 42

This is internal Influences - can protest against decisions made by the making director Interest the share of the profit made

Question 43

What are the influence and the interest of employees?

Answer 43

This is internal Influence - can leave, take industrial action (strike) Interests - good pay and good working conditions

Question 44

What are banks influences and interest in a business?

Answer 44

This is external Influence - can provide loans, interest rates Interest - can repay them back

Question 45

Customers influences and interest in a business are?

Answer 45

This is external Influences - decide to buy or not, can complain Interests - wants high quality goods and services at low cost

Question 46

What is the influences that a government has on a business?

Answer 46

This is external Influences - can vary tax rates and introduce new laws Interest - wants the business to be legal