Semester 1 Exam

Question 1

Sole trader

Answer 1

Business with one owner. They bear all workload and costs but recieve all profit. Simple.

Question 2

Partnership

Answer 2

2 or more ownes. Max 20. Both of them shre loss and profits

Question 3

Small proprietary company

Answer 3

Limited liabilities, access to capital, higher set up and running costs. More complex and potential restrictions to ownership

Question 4

Not-for-profit

Answer 4

Business that operates to fulfull specific objectives rathers than making a profit for itself

Question 5

Franchise

Answer 5

Legal agreement, where franchisee pays a fee to operate business using the branding, trademarks, products and systems established by the company

Question 6

Business plan

Answer 6

Provides a roadmap for a business, defining its goals, strategies and how they will be acheived. Should be realistic

Question 7

Executive summary

Answer 7

A breif overview of a longer document to summarise a business to stakeholders quickly

Question 8

Vision statement

Answer 8

Based on the businesses goals and aspirations, a vision is the desired image of what the business wants

Question 9

Business concept

Answer 9

Concise outline of your business idea. Essentially the foundational framework for the future

Question 10

Operations strategy

Answer 10

Guiding plan that helps businesses decide how to create and distribute their products or service

Question 11

Marketing plan

Answer 11

A document that outlines how a business will reach its targets. SWOT

Question 12

Financial plan

Answer 12

Comprehensive document that outlines an individuals current financial situation

Question 13

HRM

Answer 13

Strategies for recruiting, training, managing and retaining employees

Question 14

Inflation

Answer 14

Gradual rise in the CPI (Consumer price index) which affects prices of products usually

Question 15

Interest rates

Answer 15

The cost of borrowing money.
High = Slow sales if item is not a neccessity
Low = Good sales

Question 16

Unemployment

Answer 16

Percentage of the working force who is able to work and is searching for a full time job but do not have a job.

Question 17

Availability of skilled and unskilled labour

Answer 17

How easily a business can find workers with or without a specific skill

Question 18

Social norms

Answer 18

Unwritten rules of a society that govern the publics behaviour. What is trendy.

Question 19

Level of economic activity

Answer 19

The wealth of a country or nation.
High =
-Businesses compete in value rather than price
-More choice for goods and services

Question 20

Market

Answer 20

Place where buyers and sellers can come together and exchange goods or services.

Question 21

Marketing

Answer 21

The process of identifying a target market, defining what the target market needs/wants and organising the firm to meet those needs/wants

Question 22

Market size

Answer 22

Total potential customers within a specific market for a product/service

Question 23

Market share

Answer 23

Percentage of all sales in a particular market that are held by one brand of company.
Market share = Sales revenue of one product/Total sales revenue in that one product

Question 24

Purpose of market strategy

Answer 24

Gain and sustain a competitive edge

Question 25

Features of a market strat

Answer 25

Segmentation, targetting and positiong, promotional tactis, monitoring and evaluation, marketing plan.

Question 26

Marketing position

Answer 26

Where does it fit on a graph of high quality vs low quality and high price vs low price. Position.

Question 27

Competitor analysis

Answer 27

Business collecting info on businesses performing in the same market who produce a similar product or service. SWOT SWOT SWOT!

Question 28

Target market analysis

Answer 28

Set of customers sharing common needs, wants and expectations that abusiness treis to sell to. -Mass marketing -Segmented -Concentrated

Question 29

Marketing goals

Answer 29

Realistic and measurable goals to be achieved through the marketing strategy. KPI's (Key performance indicators) are checkpoints to let the business know if they are meeting their expectations

Question 30

Marketing strategy

Answer 30

The actions a business will undertake in order to achieve its market goals

Question 31

Marketing Mix

Answer 31

-Product -Place -Price -Promotion -People -Process -Physical

Question 32

Market segmentation

Answer 32

Breaking the market in smaller submarkets. -Geographic -Demographic -Psychographic

Question 33

Collection of secondary data

Answer 33

Business collecting information that already exists

Question 34

Data analysis

Answer 34

Techniques to exame and interpret data

Question 35

Customer loyalty

Answer 35

The willingness of a customer to buy from or work for a business again and again. It is a result of positive customer experience and the value the customer walks away with at the end of a transaction

Question 36

Early adopter incentitives

Answer 36

Someone who is willing to take chance and take on new innovation. They are the first to use the product as soon as it is released.

Question 37

Use of tech to facilitate promotional activities

Answer 37

-Social media (Specify) -Advertisements -E-commerce -E-newsletters

Question 38

Corporate sponsorship

Answer 38

When the business provides financial or in-king support to an individual, event, organisation or cause in exchange for public recognition

Question 39

Donations

Answer 39

Businesses voluntarily providing cash, goods, services to a relief or cause without expecting anything in return

Question 40

Climate change

Answer 40

Long-term shifts in global temperature, precipitation, wind patterns and other climate related issues

Question 41

Pollution

Answer 41

Contamination of the environment by hurtful substances released by business proceedures or operations

Question 42

Animal testing

Answer 42

Practice of conducting experiments on animals to test the efficiency or safety of a product

Question 43

Energy use

Answer 43

Amount of energy consumed by a company in its operations