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Buisness Studies > Business 2 > Flashcards

Business 2 Flashcards

1
Q

Business Sources Of Finance Etc

What is market research?

A

Activities businesses run in order to find more information about what a consumer may want or need.

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2
Q

Business Sources Of Finance Etc

What is primary market research? Give 2 Examples.

A

This is market research collected personally by the business for specific purposes. This could include surveys or focus groups.

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3
Q

Business Sources Of Finance Etc

Give a benefit and a negative of primary market research.

A

It will be very specific to the businesses required informations purpose, though it is usually expensive to conduct.

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4
Q

Business Sources Of Finance Etc

What is secondary market research? Give 2 examples.

A

This is market research was likely collected for a different purpose by another group and is searched for as secondhand information to be used by the business. This could include searching on Google or referencing in a public library.

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5
Q

Business Sources Of Finance Etc

Give a benefit and a negative of secondary research.

A

The information is usually cheap to obtain, but could be outdated.

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6
Q

Business Sources Of Finance Etc

What is a survey?

A

A collection of questions used by business in order to find out customers behaviours and attitudes.

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7
Q

Business Sources Of Finance Etc

What is a focus group?

A

A group of people who trial a product and then give feedback to the owner of the business.

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8
Q

Business Sources Of Finance Etc

What are the differences between qualitative research and quantitative research?

A

Qualitative research is more relevant to opinion, such as interviews to find out customers behaviours and attitudes. quantitative research focuses more on data, such as gathering statistics and then analysing them.

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9
Q

Business Sources Of Finance Etc

What is invention?

A

The process of discovering new product ideas, and new ways to make a product work.

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10
Q

Business Sources Of Finance Etc

What is innovation?

A

The process of delivering a new invention into products that consumers can purchase.

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11
Q

Business Sources Of Finance Etc

What is a patent?

A

The process of obtaining protection of a unique idea, and allowing the creator sole rights to the invention and development of it.

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12
Q

Business Sources Of Finance Etc

What is a trademark?

A

The process of protecting a businesses name or slogan from competitors.

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13
Q

Business Sources Of Finance Etc

What is a copyright?

A

The process of protecting artistic work, such as a photograph or film from competitors or free, unprofitable copies from consumers.

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14
Q

Business Sources Of Finance Etc

Explain a bank loan, its term and an advantage and disadvantage of it.

A

A bank loan is a source of finance taken from a bank to try and raise capital for a business. It can be Short AND Long term. An advantage is that is is quick to obtain once approved, but interest must be paid onto the loan.

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15
Q

Business Sources Of Finance Etc

Explain Share Capital, its term and an advantage and disadvantage of it.

A

Share capital is finance gained from selling shares of the business. It is long term. It has no interest on the shares sold as an advantage, but you give up some control of the business.

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16
Q

Business Sources Of Finance Etc

Explain Venture Capital, its term and an advantage and disadvantage of it.

A

This is money gained from an investor who likes the business idea and takes a percentage of shares from this investment. It is long term. As an advantage you gain business expertise from the investor, but lose a percentage of the business shares.

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17
Q

Business Sources Of Finance Etc

Explain trade credit, its term and an advantage and disadvantage of it.

A

Trade credit is purchasing something and then paying it back after a certain amount of time. It is short term. An advantage is payment is not required up front for goods, but if payments are not paid in time interest is paid on top of the payment.

18
Q

Business Sources Of Finance Etc

Explain a grant, its term and an advantage and disadvantage of it.

A

A grant is money gained from the government when starting a business. It is long term. And advantages that is free to get, but it is hard to obtain.

19
Q

Business Sources Of Finance Etc

Explain a lease, its term and an advantage and disadvantage of it.

A

A lease is paying smaller regular payments for assets rather than paying the full price upfront. It is long term.An advantages is it is not as expensive every month this way, but the asset is not owned giving less control over its use.

20
Q

Business Sources Of Finance Etc

Explain a Bank Overdraft, its term and an advantage and 2 disadvantages of it.

A

A bank overdraft is when money in the bank account goes into negative sums, which can be used when gaining finance for business. It is short term.An advantage is that it is easy, but two disadvantages are that interest must be paid on the payments, and the bank may require the person to pay the money anytime, leading to a chance of loss in terms of personal wealth

21
Q

Business Sources Of Finance Etc

Name seven ways of gaining finance for a business :-)

A

A bank loan, share capital, venture capital, trade credit, Grant, a lease and a bank overdraft

22
Q

Business Sources Of Finance Etc

What is factoring?

A

A short term way of gaining income by selling debts to debt collectors.

23
Q

Business Sources Of Finance Etc

What are debentures ?

A

The long term way of gaining investment by promising payback on a property.

24
Q

Business Sources Of Finance Etc

Describe Herzberg’s theory of motivation.

A

This is the idea that employees discover dissatisfiers in the workplace with situations such as Bureaucracy in the company or an autocratic environment. This is to be minimized with ‘Satisifiers’ via motivational factors such as free fitness checks.this is intended to motivate by reflecting the personal aspirations of staff.

25
Q

Business Sources Of Finance Etc

Describe Mayo’s Theory of motivation.

A

This is the idea the employees can be motivated when working in teams, or if manages communicated and consult with them, taking interest in their views and well-being. This motivates by helping to empower the workforce and could be utilized with ideas such as meetings and presentations, bringing the workplace together as a team.

26
Q

Business Sources Of Finance Etc

Describe Maslow’s theory of motivation.

A

This relates motivation to hierarchy of needs. At the bottom of the hierarchy of physiological needs such as food and air. And as each level is reached, a new level is required, eventually leading to self actualization when the employees are content with that position in society. This motivates employees, by allowing them to work through each of the levels, perhaps game from a competitive salary to allow individuals to take control of projects, Giving a sense of position and targets in the workplace.

27
Q

Business Sources Of Finance Etc

What is revenue?

A

Total Money collected from sales, Price x Quantity, ignoring other costs

28
Q

Business Sources Of Finance Etc

What are the two types of costs to a business?

A

Variable costs, which can change, usually raw materials. Fixed costs, which do not change such as rent, salaries and business rates.

29
Q

Give 3 ways to cut costs of a business

A

Reduce Workforce, Contract out work Cut wages

30
Q

Give 3 ways of improving business revenue

A

Raise Prices, Increase sales through promotions, Introduce new products

31
Q

What is a cash flow?

A

A forecast of incomes and outgoings of a businesses’ finance, which is used by a business to predict the financial situation for each month, with solutions to problems found if need

32
Q

What is an opening and closing balance?

A

The money the business already has at the start of a month, with a closing balance being at the end

33
Q

Why is a cash flow prediction beneficial, but what is its drawback?

A

It allows a business to identify problems financially and develop solutions, but it is only a prediction which can be found inaccurate, leading to problems.

34
Q

What are the four P’s of marketing

A

Price
Promotion
Product
Price

35
Q

Give the two main types of ways to increase revenue in a cash flow

A

Increase inflows, decrease outflows

36
Q

Give three ways to increase inflows to a cash flow

A

Long term solutions (such as loans),de-stocking, Improving sales revenue (through things such as advertising), Improving through customers (calling in late payments, not using trade credit)

37
Q

Give three ways to reduce outflow in a cash flow.

A

Lease rather than buy, reduce/introduce flexible working hours, delay paying invoices (use trade credit), reduce orders for materials and stock

38
Q

What is de-stocking?

A

Getting rid of products quickly through activities such a sales or promotions

39
Q

What is Meant by breaking even?

A

When a businesses revenue is equal to their total costs

40
Q

Give two limitations of working out when a business will break even

A

Variable costs may change

Doesn’t predict how much demand there may be

41
Q

What is the formula for break even point?

A

Fixed costs/Selling point - Variable costs

42
Q

Why would a break even point be beneficial to be calculated? (2)

A

So a business or bank knows whether the business idea is feasable
So a business can set goals and objectives

Buisness Studies (6 decks)

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