Business Questions Flashcards
(20 cards)
What are the four main business ownership types?
Sole trader, partnership, private limited company (Ltd), public limited company (PLC
What is an entrepreneur?
A person who starts and runs their own business, taking financial risks to make a profit.
What is a business objective?
A goal that a business aims to achieve, such as profit maximization, growth, or customer satisfaction.
What is market research?
The process of gathering and analyzing information about consumers and competitors
What are the two types of market research?
Primary research (first-hand data like surveys) and secondary research (existing data like reports).
What is a target market?
A specific group of consumers a business aims to sell its products or services to.
What is the marketing mix (4Ps)?
Product, Price, Place, Promotion—the key elements of a business’s marketing strategy
What is a competitive advantage?
A factor that makes a business’s products or services better than its competitors.
What is revenue?
The total income a business earns from sales (Revenue = Price × Quantity Sold).
What is profit?
The amount of money left after deducting costs from revenue (Profit = Revenue – Costs
What is cash flow?
The movement of money in and out of a business over a period of time.
What is a break-even point?
The level of sales at which a business makes neither profit nor loss.
What is the difference between fixed and variable costs?
Fixed costs stay the same (e.g., rent), while variable costs change with production levels (e.g., raw materials).
What are two ways a business can grow
Internal growth (expanding operations) and external growth (merging or taking over other businesses).
What is globalisation?
The process of businesses operating and competing on an international scale.
What are some external factors that affect businesses?
Economic changes, legal regulations, technological advancements, environmental factors.
What are the two types of recruitment?
Internal recruitment (hiring from within the company) and external recruitment (hiring from outside).
What is lean production?
A method to reduce waste and improve efficiency in production.
What is quality control?
Checking products at the end of production to ensure they meet standards.
What are the three main types of production?
Job production (one-off items), batch production (small groups of identical products), flow production (continuous large-scale production).
