Paper 1 Flashcards
(26 cards)
What is the main purpose of a business plan?
To outline the goals, strategies, and financial forecasts of a business.
True or False: A business model describes how a company creates, delivers, and captures value.
True
Fill in the blank: The four Ps of marketing are Product, Price, Place, and __________.
Promotion
What does SWOT stand for in a SWOT analysis?
Strengths, Weaknesses, Opportunities, Threats
What is market segmentation?
The process of dividing a target market into smaller, more defined categories.
Multiple Choice: Which of the following is NOT a type of business ownership? A) Sole Proprietorship B) Partnership C) Franchise D) Corporation
C) Franchise
Define ‘cash flow’.
The total amount of money being transferred into and out of a business.
What is a target market?
A specific group of consumers at which a company aims its products and services.
True or False: A business’s mission statement outlines its core purpose and values.
True
What do the letters in PEST analysis stand for?
Political, Economic, Social, Technological
Fill in the blank: The __________ is the amount of money a business makes after deducting expenses.
Profit
What is the difference between fixed costs and variable costs?
Fixed costs remain constant regardless of production levels, while variable costs change with production volume.
Multiple Choice: Which financial statement shows a company’s revenues and expenses over a specific period? A) Balance Sheet B) Income Statement C) Cash Flow Statement D) Statement of Retained Earnings
B) Income Statement
What is an entrepreneur?
An individual who creates and runs a new business, taking on financial risks in the hopes of profit.
True or False: Branding is only about a company’s logo.
False
What is the purpose of market research?
To gather information about consumers’ needs and preferences.
Fill in the blank: The __________ is a graphical representation of a company’s financial position at a specific point in time.
Balance Sheet
What is a competitive advantage?
A condition that allows a company to produce goods or services better or more cheaply than its competitors.
Multiple Choice: Which of the following is an example of a primary research method? A) Surveys B) Internet Research C) Focus Groups D) Both A and C
D) Both A and C
Define ‘diversification’ in a business context.
The strategy of entering into new markets or industries distinct from the current product line.
True or False: Profit margin is calculated as net income divided by revenue.
True
What is the role of a manager in a business?
To plan, organize, lead, and control the resources of the organization.
Fill in the blank: __________ is the process of influencing and guiding others in an organization.
Leadership
What is an example of a non-profit organization?
A charity organization that operates to serve the public good without profit motives.
