Unit 1

Question 1

What does ‘break even’ mean?

Answer 1

Break even is when your profits and gains are equal

Question 2

What is a ‘Fixed cost’

Answer 2

A fixed cost is when a cost stays consistent no matter how much money you make

Question 3

What is a sole trader

Answer 3

a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.

Question 4

What is primary research

Answer 4

Primary research is any type of research that you collect yourself. Examples include surveys, interviews, observations, and ethnographic research

Question 5

Market research

Answer 5

the action or activity of gathering information about consumers’ needs and preferences.

Question 6

Private limited company

Answer 6

A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

Question 7

Public limited

Answer 7

(in the UK) a company registered under the Companies Act (1980), with statutory minimum capital requirements and shares offered to the public subject to conditions of limited liability.