Theme 1 (3)

Question 1

Primary research

Answer 1

Research conducted first hand, it is tailored to a company’s specific needs.

Question 2

Private limited company Ltd

Answer 2

A business that has limited liability whose shares are not traded on the stock exchange.

Question 3

Product

Answer 3

A good or service sold to consumers.

Question 4

Product differentiation

Answer 4

Where a product has unique features that makes it stand out from other similar products in the market.

Question 5

Profit

Answer 5

The difference between revenue and total costs. If the figure is negative, the business is making a loss.

Question 6

Promotion

Answer 6

Methods used to encourage potential consumers to purchase a good or service from a business.

Question 7

Public limited company Plc

Answer 7

A business that has limited liability whose shares are traded on the stock exchange.

Question 8

Qualitative data

Answer 8

Research that involves collecting opinions from potential consumers.

Question 9

Quantitative data

Answer 9

Research that involves collecting numerical information.

Question 10

Resources

Answer 10

The factors of production such as labour that are required to successfully run a business.

Question 11

Retained profits

Answer 11

The profit made by a business that is not paid to shareholders and is used as an internal source of finance.

Question 12

Revenue

Answer 12

The income that a business receives from its sales (selling price multiplied by quantity of goods sold).

Question 13

Revenue/Sales Revenue

Answer 13

The amount of money that comes in from a business’s sales.

Question 14

Risk and reward

Answer 14

The balance between potential profit in the future and the initial costs of setting up an enterprise.

Question 15

Secondary research

Answer 15

Research that a company does not collect for a specific purpose itself and can be found in places such as the internet.

Question 16

Services

Answer 16

Providing useful ways to help people live their lives, for example shops, restaurants, and hospitals.

Question 17

Share Capital

Answer 17

The raising of capital by selling new shares in a company.

Question 18

Shareholders

Answer 18

Investors who are part-owners of a company.

Question 19

Social media

Answer 19

Any form of electronic communication that allows users to share content.

Question 20

Social objective

Answer 20

Business goals that are non-financial and designed to meet a social/community need.

Question 21

Sole Trader

Answer 21

A business owned by one person which has unlimited liability.

Question 22

Stakeholder

Answer 22

Anyone who has an interest in the activities of a business, such as its workers, its suppliers, its directors, the local community, and the government.

Question 23

Start-up

Answer 23

A new business, usually with only a small number of employees.

Question 24

Target market

Answer 24

A particular group of consumers at which a business aims its products and services.

Question 25

Total costs

Answer 25

All the costs of a business, found by adding fixed and variable costs. (Fixed plus variable costs for a time period)

Question 26

Trade credit

Answer 26

Where a business buys raw materials from its suppliers, but pays in cash at a later date.

Question 27

Unemployment

Answer 27

When someone of working age wants a job but cannot get one.

Question 28

Unique Selling Point (USP)

Answer 28

Something that makes a product stand out from its competitors.

Question 29

Unlimited liability

Answer 29

A situation where the business and the owner are treated legally as one and the same. Thus, any debts incurred by the business have to be settled by the owner(s).

Question 30

Value added

Answer 30

The difference between the selling price of the product and the cost of the factor inputs.

Question 31

Variable costs

Answer 31

Costs that change when output changes.

Question 32

Venture Capital

Answer 32

Investment of cash from individual or groups of individuals into a private limited company.