Businesses

Question 1

What is the purpose of a business?

Answer 1

To meet costumer needs.

Question 2

What two things might a business consider whilst setting up their business?

Answer 2

How the business will be financed

What legal aspects have to be considered

Question 3

What is primary research and give examples.

Answer 3

Any type of research that you collect yourself.
Examples are:
surveys 
interviews
observations

Question 4

What is secondary research and give examples.

Answer 4

Research from existing data.
Example are:
tables and graphs

Question 5

What is internal and external research?

Answer 5

Internal is primary research and external is secondary research.

Question 6

What is quantitative data?

Answer 6

Expressing research through numbers.

Question 7

What is qualitative data?

Answer 7

Data that is related to opinions, values and behaviors.

Question 8

What is the difference between quantitative and qualitative data?

Answer 8

Qualitative describes and quantitative defines.

Question 9

How does segmenting(dividing) the market help?

Answer 9

To differentiate the product

Focus on a specific costumer group.

Question 10

Define variable cost.

Answer 10

A cost that varies with the level of output(the amount of something produced).

Question 11

What is the calculation for added value.

Answer 11

What the business pays- what it receives for selling its products.

Question 12

Define unique selling point.

Answer 12

A characteristic that makes it different from its competitors .

Question 13

Define franchisee.

Answer 13

An individual or company that holds a franchise to sell goods or operate services.

Question 14

Define franchisor.

Answer 14

A company that allows an individual to run a location of their business.

Question 15

Define legisaltion.

Answer 15

Laws :)

Question 16

Define soletrader.

Answer 16

person who runs their business individually and does not have a partner or share holder.

Question 17

Define shareholder.

Answer 17

An owner of shares in a company.

Question 18

What are advantages of being an established company?

Answer 18

Recognized
Experienced
Which means you have a better chance in defeating competitors.

Question 19

What is a tertiary sector?

Answer 19

The service sector. It is the portion of the economy that produces intangible goods.
E.G.
insurance, transport, advertising, warehousing.

Question 20

What is a primary sector?

Answer 20

It involves acquiring/buying raw materials.

Question 21

What is a secondary sector?

Answer 21

The manufacturing and assembly process.

Question 22

Define intangible.

Answer 22

Not having physical process.

Question 23

Define blue-skies thinking.

Answer 23

Creative ideas that are not limited by current thinking or beliefs.

Question 24

Define lateral thinking.

Answer 24

Thinking differently to find new and unexpected ideas- thinking outside the box.

Question 25

Define patent.

Answer 25

A government authority.

Question 26

Define copyright.

Answer 26

The legal right given to an originator for a fixed number of years to print, publish, perform, film or record.

Question 27

Define fixed cost.

Answer 27

A cost that does not change in the increase or decrease of the amount of goods or services.

Question 28

Define innovation and invention.

Answer 28

The action of discovering/creating new processes and potential new products typically after a period of research.

Question 29

Define calculated risk. Give an example.

Answer 29

The probability of a negative event occurring. | E.G. There is a 20% that the business will fail.

Question 30

Define inflation.

Answer 30

general increase in price and fall in the purchasing value of money.

Question 31

Define revenue and how to calculate revenue.

Answer 31

Revenue is income. | revenue = price x units sold

Question 32

What is the calculation of total cost?

Answer 32

Total cost = total fixed cost + total variable cost.

Question 33

What is the calculation of variable cost?

Answer 33

Variable cost = total cost - fixed cost.

Question 34

What is the calculation of profit/loss?

Answer 34

Profit/loss = total revenue - total costs.

Question 35

Define expenditure.

Answer 35

The action of spending funds.