business theme 1

Question 1

what is meant by customer needs ?

Answer 1

customer wants and desires

Question 2

define the term market research

Answer 2

gathering information about customers

Question 3

what are primary market research methods

Answer 3

surveys, interviews, focus groups

Question 4

name a secondary market research source

Answer 4

government statistics, industry reports

Question 5

explain the concept of a target market

Answer 5

a specific group that the marketing efforts are targeted towards

Question 6

what is a USP (marketing)

Answer 6

unique selling proposition

Question 7

describe the purpose of product differentiation

Answer 7

standing out from competitors

Question 8

what role does branding play

Answer 8

identifies and distinguishes products and brands

Question 9

name a customer retention strategy

Answer 9

loyalty programmes and special offers

Question 10

how can businesses adapt to changing customer preferences

Answer 10

Market research and innovation adadptation

Question 11

what is a market

Answer 11

interaction of buyers and sellers

Question 12

define the term “demand”

Answer 12

desire for goods and services

Question 13

what factors can affect demand

Answer 13

price, income, substitutes, complements

Question 14

describe the concept of supply

Answer 14

quantity of goods available

Question 15

what influences supply

Answer 15

cost of production, technology

Question 16

what is the equilibrium price

Answer 16

where the demand meets supply

Question 17

what is the ideal/perfect competition

Answer 17

many small firms competing

Question 18

define the term “monopoly”

Answer 18

one single seller dominating a market

Question 19

explain oligopoly in markets

Answer 19

a few large firms dominating

Question 20

define price elasticity of demand

Answer 20

responsiveness of demand to price

Question 21

what is PED formula

Answer 21

percentage change in quantity demanded/percentage change in price

Question 22

what factors affect elasticity

Answer 22

necessity of product, price changed

Question 23

describe income elasticity of demand

Answer 23

demand changed along with income

Question 24

what is cross price elasticity

Answer 24

the relationship between two different goods prices

Question 25

explain price elasticity of supply

Answer 25

responsiveness of supply to the price

Question 26

what factors affect supply elasticity

Answer 26

production time, recourse availability

Question 27

what is the marketing mix

Answer 27

product, price, place, promotion

Question 28

what are the pricing strategies

Answer 28

penetration, skimming, competition based

Question 29

what is the price penetration strategy

Answer 29

offering a lower price initially to attract customers to a new product or service

Question 30

what is the price skimming strategy

Answer 30

when a company charges the highest initial price that customers will pay and then lowers in over time

Question 31

what is competition based pricing strategy

Answer 31

choosing a strategic price to take advantage of a product or service based on the competitions price

Question 32

name promotion methods

Answer 32

advertising, sales promotion, PR

Question 33

describe Maslow's hierarchy of needs

Answer 33

in order from the bottom- psychological needs, safety and security, love and belonging, self-esteem, self actualisation

Question 34

what is Herzberg's two-factor theory ?

Answer 34

hygiene and motivation

Question 35

what is delegation in management

Answer 35

recognition, rewards and team building activities

Question 36

what are characteristics of an entrepreneur

Answer 36

innovative, risk taking, proactive, visionary

Question 37

what is meant by the term innovation

Answer 37

introducing new ideas/methods

Question 38

what are the different leadership styles

Answer 38

autocratic, democratic and laissez faire

Question 39

describe an autocratic leadership style

Answer 39

-clear lines of authority -centralized decision making -employees ideas not considered

Question 40

describe a democratic leadership style

Answer 40

-group makes decisions -contribution encouragement -employees ideas are considered -pride in their work

Question 41

describe a paternalistic leadership style

Answer 41

-prioritize employees well-being -manager will listen but has final say -loyalty and family like

Question 42

describe laissez faire leadership style

Answer 42

-encouraging creativity and risk taking -delegation -minimal supervision -freedom to make decisions

Question 43

what is share capital?

Answer 43

money from selling ownership

Question 44

what is a dividend

Answer 44

a dividend payment is the distribution of a company's profits to its shareholders (stock holders)

Question 45

what is retained profit

Answer 45

profits kept within the company

Question 46

explain the term loan capital

Answer 46

money a company borrows from external sources like banks

Question 47

explain the term venture capital

Answer 47

funding that investors provide to start up business and mall businesses with high growth potential. in exchange, the investors usually get a share of ownership in the company.(high risk)

Question 48

what is an overdraft ?

Answer 48

agreement with bank where businesses can can make payments exceeding their cash balance

Question 49

describe crowdfunding

Answer 49

raising small amounts of money from people and group, usually online

Question 50

what are subsidies ?

Answer 50

financial support from the government to help reduce business costs, encourage growth