Business EOY Revision

Question 1

What are the two ways that new business ideas come about?

Answer 1

Original ideas and adapting existing ideas

Question 2

What are the reasons why new business ideas come about?

Answer 2

Changes in what consumers want, obsolescence and changes in technology

Question 3

What does it mean if a business is dynamic?

Answer 3

Constantly changing and adapting for new customer needs

Question 4

What are the big risks in making a business?

Answer 4

Business failure, financial loss, lack of security

Question 5

What are the big rewards in making a business?

Answer 5

Business success, profit, independence

Question 6

What are the main roles of a business?

Answer 6

To produce goods and services, to meet customer needs and to add value

Question 7

What are the different ways to add value?

Answer 7

Convenience, branding, quality, design and unique selling points

Question 8

What are the roles of entrepreneurs?

Answer 8

Manage resources, take risks and to make important decisions

Question 9

What are the four customer needs?

Answer 9

Price, quality, choice and convenience

Question 10

What is the importance of identifying and understanding customers?

Answer 10

Generating sales and business survival

Question 11

What does meeting customer needs usually lead too?

Answer 11

Repeat purchases and loyal customers

Question 12

What are the purpose of market research?

Answer 12

To identifying customer needs, to identify gaps in the market, to reduce risks and to inform decisions

Question 13

What are the two types of data?

Answer 13

Qualitative and quantitative

Question 14

What type of data uses numbers

Answer 14

Quantitative

Question 15

What type of data uses worded responses?

Answer 15

Qualitative

Question 16

What does market research need to be if a business is going to use it?

Answer 16

Reliable

Question 17

What are the two types of market research?

Answer 17

Primary and secondary

Question 18

What is primary market research?

Answer 18

Research/data they have got first hand-Not online

Question 19

What is secondary market research?

Answer 19

Research that has already been found by another business online

Question 20

What are some examples of primary research?

Answer 20

Focus groups, observations, experiments, questionnaires and social media

Question 21

What are some examples of secondary research?

Answer 21

The internet, local newspapers, government reports, market reports, telephone directories and sales data

Question 22

What are the different segments that the target market is split up into?

Answer 22

Demographics, income, gender, age, lifestyle and location

Question 23

What is the acronym for the methods of segmentation?

Answer 23

DIGALL

Question 24

What is the use of market mapping?

Answer 24

When businesses create a mindmap full of competitors to find the gap in the market

Question 25

What are some financial aims and objectives for start-up businesses

Answer 25

Survival, profit, sales, market shares, financial security

Question 26

What are some non-financial aims and objectives for start-up businesses?

Answer 26

Social objectives, personal satisfaction, challenge, independence and control

Question 27

What is the difference between an aim and an objective?

Answer 27

An aim is what a business want to achieve; whereas an objective is a smaller step to help achieve the aim.

Question 28

What is the importance of cash for a business?

Answer 28

Paying suppliers, bills and employees and to prevent business failure

Question 29

What is in a cash flow forecast?

Answer 29

Inflows, outflows, net cash flow and opening and closing balance

Question 30

What are the two short term sources of finance?

Answer 30

Overdraft and trade credit

Question 31

How long do you have to pay it back by for it too be a short-term source of finance?

Answer 31

Under one year

Question 32

What are some examples of long term sources of finance?

Answer 32

Personal savings, venture capital, share capital, loans and retained profit

Question 33

What are the different types of businesses?

Answer 33

Sole trader, partnership and limited company