KEY DEFINTIONS/ FORMULAS FOR BUSINESS OPPORTUNITIES

Question 1

SMEs

Answer 1

Small and Medium-sized Enterprises.” This term refers to businesses that fall within a certain size range in terms of their annual revenue, number of employees, or other criteria, depending on the country and industry.

Question 1

enterprise

Answer 1

A person spotting a business opportunity and setting up a business business ideas come about for a number of reasons often because they feel their needs aren’t being met

Question 2

business opportunities

Answer 2

needs and wants are not fixed. they can change quickly as fashions and lifestyles change and also over the longer term as incomes increase and population change, meaning the markets are always changing and new opportunities are constanty arising.

Question 3

market

Answer 3

a meeting place between buyers and sellers where goods and services are exchanged, usually for money.

Question 4

competition

Answer 4

competition refers to the rivalry and interaction between companies operating in the same market or industry, as they strive to attract customers, increase market share, and achieve superior performance relative to their competitors

Question 5

market share calc

Answer 5

sales of a business /total sales in a market X100

Question 6

market segmantation

Answer 6

breaking down a market into subgroups that share similar characterisitcs identifying and targeting of groups of people with similar needs and developing products or services for each of them

Question 7

demand

Answer 7

the quantity of a goof or service consumers are willing and able to purchase at a given price

Question 8

supply

Answer 8

thw quantity of goods or services producers are willing and able to supply at a given price

Question 9

equilibrium price

Answer 9

in a free market demand and supply equal the equilibrium price. this is where the quantity demanded is equal to the quantity supplied

Question 10

market research

Answer 10

the action or activity of gathering information about consumers’ needs and preferences, competition, size of market etc

Question 11

primary research

Answer 11

Gathers first hand information directly relevant to the needs of the business

Question 12

secondary research

Answer 12

Involves the use of previously collected information not specifically gathered for the business but adapted for use

Question 13

quantitative data

Answer 13

involves collection of data that can be measured, statistical data such as sales figures and market share

Question 14

qualitative data

Answer 14

involves collection of data about attitudes, beleifs, intentions e.g., through focus groups participant observation and interviews

Question 15

sampling

Answer 15

process of seclecting a group of respondants to a market research exercise who are selected to be representitve of the views of the target market as a whole

Question 16

random sampling

Answer 16

every member of the population has an equal chance of being interviewed

Question 17

quota sampling

Answer 17

the population is segmented into a number of groups that share specific characterisitcs

Question 18

Unlimited Liability

Answer 18

exposes business owners to the risk of losing personal assets to satisfy business debts often in sole traders

Question 19

limited liability

Answer 19

limited liability provides a level of protection by limiting their assets wont be sold if they cant afford to repay debts