Business studies booklet 1 Flashcards
(18 cards)
what is an entrepreneur?
an entrepreneur is someone who sets up a business and without them the business wouldn’t exist.
what are the three roles of an entrepreneur?
creating and setting up a business.
running and expanding the business.
business innovation.
what are three skills and three characteristics of an entrepreneur?
skills can be taught- communication, numeracy and organization.
characteristics are naturally occurring unique traits- creativity, hard working, initiative.
what is intrapreneurship?
entrepreneurs need to be innovative, but sometimes they hire other people within the business to innovate for them.
what are variable costs?
costs that change with output
what are fixed costs?
costs that do not change with output
what is the formula for gross profit and operating profit?
gross profit= sales revenue- cost of sales
operating profit= sales revenue- cost of sales- other expenses
what is market research?
gathering information on how customers purchase goods and services, finding out their wants and needs and if they are currently being satisfied
secondary- already completed for a different purpose
primary- being conducted for the first time
what is the difference between quantitative research and qualitative research?
quantitative- choosing a method which brings results in statistical form
qualitative- choosing a method which brings data in word form with a greater depth of response
what is the difference between product orientation and market orientation?
product orientation involves a business making a product that is innovative and unique so will attract sales due to its quality, whereas market orientation involves a business researching consumer wants and needs then taking a product that fills these wants.
what is differentiation?
the process of making a product or service different to competitors.
what is market mapping?
a visual representation of how current business are perceived by consumers in the market in regards to multiple factors.,
what is the marketing mix?
product, price, place and promotion.
what is market segmentation?
the process of splitting a market and grouping customers together based of shared tastes and preferences.
geographic-countries, cities and towns
demographic-age, income and gender
psychographic- hobbies beliefs and attitudes
behavioral-user status, usage rate and occasions
what is research and development?
the process of testing and improving.
what is the design mix?
aesthetics, function and economic manufacture.
what is a business plan?
the business plan is usually a document that illustrates the thought process of a start up business, will include the marketing plan and a sales forecast
what is sales forecasting?
sales forecasting is an attemp to estimate the likely number of products that will likely be sold by the business in a specific time period.
