Business Topkc 1 Flashcards
(102 cards)
1
Q
Fill in the blank: A business that is owned by one person is called a ______.
A
sole trader
2
Q
What are the four main types of business ownership?
A
Sole trader, partnership, private limited company, public limited company
3
Q
Which document outlines a business’s objectives and strategies?
A
Business plan
4
Q
What is meant by ‘market segmentation’?
A
The process of dividing a market into distinct groups of buyers.
5
Q
True or False: A partnership has unlimited liability.
A
True
6
Q
What is a ‘target market’?
A
A specific group of consumers at which a company aims its products or services.
7
Q
What is the purpose of market research?
A
To gather information about consumers’ needs and preferences.
8
Q
Fill in the blank: The four P’s of marketing are Product, Price, Place, and ______.
A
Promotion
9
Q
What is meant by ‘gross profit’?
A
Revenue minus the cost of goods sold.
10
Q
What does ‘cash flow’ refer to?
A
The total amount of money being transferred in and out of a business.
11
Q
True or False: Limited liability protects personal assets of the owners.
A
True
12
Q
What is a ‘stakeholder’?
A
Any individual or group that has an interest in the success of a business.
13
Q
What is the role of a business manager?
A
To oversee operations and make decisions to achieve business goals.
14
Q
Fill in the blank: The ______ is the difference between total revenue and total costs.
A
profit
15
Q
What is ‘branding’?
A
The process of creating a unique name and image for a product in the consumers’ mind.
16
Q
What is ‘e-commerce’?
A
Buying and selling goods or services over the internet.
17
Q
True or False: A public limited company can sell shares to the general public.
A
True
18
Q
What factors can influence consumer behavior?
A
Cultural, social, personal, and psychological factors.
19
Q
What is ‘supply and demand’?
A
The relationship between the quantity of a commodity available and the desire for that commodity.
20
Q
Fill in the blank: A business’s ______ identifies its goals and how to achieve them.
A
mission statement
21
Q
What is a ‘franchise’?
A
A business model where a franchisee buys the rights to operate a business under the franchisor’s brand.
22
Q
What does the term ‘market share’ refer to?
A
The percentage of total sales in a market captured by a particular company.
23
Q
True or False: A business can have multiple target markets.
A
True
24
Q
What is ‘customer service’?
A
The support offered to customers before, during, and after purchasing a product.
25
Fill in the blank: ______ marketing is a strategy that focuses on creating and distributing valuable content.
Content
26
What is the difference between 'fixed costs' and 'variable costs'?
Fixed costs do not change with production levels, while variable costs do.
27
What is a 'business model'?
A plan for how a company will generate revenue and make a profit.
28
What does 'SWOT analysis' stand for?
Strengths, Weaknesses, Opportunities, Threats
29
True or False: A good business strategy is adaptable and can change based on market conditions.
True
30
What is 'corporate social responsibility'?
A business model that helps a company be socially accountable to itself, its stakeholders, and the public.
31
Fill in the blank: The ______ is the document that outlines a company's financial performance.
income statement
32
What is 'human resources management'?
The function of managing the workforce and workplace culture.
33
What is the purpose of a business's mission statement?
To define the company's purpose and primary objectives.
34
True or False: The price elasticity of demand measures how much the quantity demanded changes in response to a price change.
True
35
What is 'product differentiation'?
The process of distinguishing a product from others to make it more attractive.
36
Fill in the blank: A ______ is an individual who starts and runs a new business.
entrepreneur
37
What is the 'break-even point'?
The level of sales at which total revenues equal total costs.
38
What is 'business ethics'?
The principles and standards that determine acceptable conduct in business.
39
True or False: A business can have both tangible and intangible assets.
True
40
What is 'operational efficiency'?
The ability to deliver products or services in the most cost-effective manner.
41
What does 'B2B' stand for?
Business to Business
42
What is 'market penetration'?
The strategy of increasing sales of existing products in existing markets.
43
Fill in the blank: A ______ is a plan that outlines how to market a product.
marketing strategy
44
What is 'inventory management'?
The process of ordering, storing, and using a company's inventory.
45
True or False: A company's reputation can impact its sales.
True
46
What is 'competitive advantage'?
The attributes that allow an organization to outperform its competitors.
47
What does 'ROI' stand for?
Return on Investment
48
What is a 'business cycle'?
The cycle of economic expansion and contraction.
49
Fill in the blank: The ______ is the total amount of money a business owes to creditors.
liability
50
What is 'price skimming'?
A pricing strategy where a high price is set initially and lowered over time.
51
What is 'diversification' in business?
The strategy of entering new markets with new products.
52
True or False: A limited liability partnership protects partners from personal liability.
True
53
What does 'market saturation' mean?
When a market is no longer able to grow because it is fully served.
54
Fill in the blank: ______ pricing is setting a low price to attract customers to a new product.
Penetration
55
What is 'financial forecasting'?
The process of predicting future financial outcomes based on historical data.
56
What is the purpose of a 'value proposition'?
To explain why a consumer should choose a product over competitors.
57
True or False: All businesses must pay taxes on their profits.
True
58
What is 'employee motivation'?
The level of energy, commitment, and creativity that a company's workers bring to their jobs.
59
What does 'market analysis' involve?
Assessing the market's size, trends, and characteristics.
60
Fill in the blank: ______ is the amount earned after all expenses have been deducted from revenue.
Net profit
61
What is 'lean manufacturing'?
An approach to production that emphasizes minimizing waste.
62
True or False: A good business plan is only focused on financial projections.
False
63
What is 'digital marketing'?
Marketing that utilizes the internet and online-based digital technologies.
64
What does 'customer retention' mean?
The ability of a company to retain its customers over time.
65
Fill in the blank: A ______ is a visual representation of a company's organizational structure.
organizational chart
66
What is 'business networking'?
Building relationships with other professionals to create business opportunities.
67
What is 'social media marketing'?
Using social media platforms to promote a product or service.
68
What is 'supply chain management'?
The management of the flow of goods and services from point of origin to point of consumption.
69
What are the benefits of being environmentally friendly for businesses?
1) Consumers are increasingly buying environmentally friendly products. 2) A green image can attract new customers and increase sales. 3) However, there can be a trade-off between sustainability and profit.
70
What is a potential drawback of adopting environmentally friendly practices?
Adopting sustainable practices can be expensive, as firms may need to buy new equipment and develop new processes.
71
What are pressure groups?
Pressure groups are organizations that try to influence decisions made by the government or businesses.
72
How can pressure groups affect a business's reputation?
If a pressure group campaigns against a firm, customers may view the firm negatively, potentially leading to a loss of business.
73
What actions might businesses take in response to pressure from pressure groups?
Businesses may change their marketing mix, alter their products to be more ethically sourced, or run promotional campaigns to repair their image.
74
What example illustrates supermarkets responding to pressure groups?
Supermarkets have changed policies to reduce food waste, such as ensuring fresher food reaches stores and selling oddly shaped vegetables at lower prices.
75
What should you remember when discussing the impact of environmental policies on businesses?
Explain both the benefits and drawbacks, considering the costs of policies and how they might enhance competitiveness.
76
What is disposable income?
Disposable income is the money that people have left after they have paid tax.
77
What is inflation?
Inflation is an increase in the price of goods and services.
78
How is the rate of inflation measured?
The rate of inflation is measured by tracking the percentage increase in the price of hundreds of products that an average UK household would buy over time.
79
What happens to consumer spending when inflation rises?
When inflation rises, consumer spending is likely to go up in the short-term as people rush to buy more products before prices increase further.
80
What is the effect of high inflation on wages?
With high inflation, employees can pressure employers to increase wages to afford higher prices.
81
How does high inflation affect UK exports?
A high inflation rate makes UK exports expensive, making UK firms less competitive globally.
82
What happens to business growth during high inflation?
When inflation is high, business growth tends to be low as businesses find it hard to predict costs and sales.
83
What does it mean if income is going down in 'real terms'?
Income is said to be going down in 'real terms' if inflation is rising at a faster rate than income.
84
What are the effects of income rising at a slower rate than inflation?
People will spend a greater proportion of their income on necessities, leading to lower demand for luxuries and lower profits for businesses providing those luxuries.
85
What happens if income rises at a faster rate than inflation?
People will spend a smaller proportion of their income on necessities, leading to increased demand for luxuries and higher profits for businesses providing those goods.
86
What is the inflation rate?
The inflation rate is how fast prices are increasing.
87
What is unemployment?
Unemployment is a significant economic problem that affects many people and businesses.
88
What was the UK unemployment rate in 2010?
UK unemployment was very high in 2010 - around 2.5 million.
89
What was the UK unemployment rate in 2019?
In 2019, this had fallen to about 1.3 million.
90
What is inflation?
Inflation is an increase in the price of goods and services over time.
91
How does inflation affect consumer spending?
When inflation rises, consumer spending can decrease as people have less disposable income.
92
What happens to businesses during high unemployment?
High unemployment can lead to reduced sales as many people have less disposable income.
93
What are some responses businesses may have to high unemployment?
Businesses may respond by reducing prices, reducing output, or making staff redundant.
94
What is the impact of high inflation on wages?
With high inflation, employees may pressure employers to increase wages.
95
What is the effect of taxes on consumers?
Consumers have to pay taxes on their income, which can affect their disposable income.
96
What types of taxes do businesses pay?
Businesses pay taxes on profits, environmental taxes, and taxes on premises they own.
97
How do changes in income tax affect consumer spending?
If income tax decreases, consumers have more disposable income, likely increasing spending.
98
What happens if a business's tax increases?
An increase in business taxes reduces available funds for reinvestment, potentially slowing growth.
99
What might businesses do in response to increased environmental taxes?
Businesses may try to be more environmentally friendly or find ways to cut costs.
100
What is the effect of reduced business taxes?
Reduced business taxes provide more money for reinvestment, potentially aiding growth.
101
How can lower business taxes affect competition?
Lower business taxes might attract foreign firms, increasing competition in the market.
102
What should you understand about unemployment and tax?
It's important to know the ins and outs of unemployment and tax and their effects on businesses.
