Workbook 1

Question 1

What is business

Answer 1

1. Business is the act of trading merchandise with other people and companies
2. A commercial activity

Question 2

What is a business

Answer 2

An organization or enterprise engaged in commercial, industrial or professional activities

Question 3

What are the 3 types of decisions

Answer 3

1. Strategic - long term
2. Tactical - medium term
3. Operational - short term

Question 4

What is the ‘market’

Answer 4

All potential customers for a product or service

Question 5

What is market research

Answer 5

Finding out what environment and group of people your product will sell best to

Question 6

What does market research aim to do

Answer 6

Identify and anticipate needs, wants & trends so that the company can satisfy them

Question 7

What is a need

Answer 7

Something that is essential

Question 8

What is a want

Answer 8

something that is not necessary for survival but is pleasurable to have

Question 9

What are the 4 P’s of market research

Answer 9

1. Product
2. Price
3. Place
4. Promotion

Question 10

What are the two methods of market research

Answer 10

1. Primary or field research - done independently
2. Secondary or desk research - online and with other people

Question 11

What is a good

Answer 11

A good is a product that can be touched and seen physically. They are usually non durable

Question 12

What is a service

Answer 12

A service is a product that can be used by people but not physically touched. They are usually durable

Question 13

True or false: intangible means that you can see and touch it physically

Answer 13

False

Question 14

What are the 4 factors of production

Answer 14

1. Land - raw materials
2. Labour - people’s jobs/work
3. Capital - man-made equipment
4. Enterprise - ideas