Theme 1 - keywords

Question 1

Mass market

Answer 1

Products or services which are targeted at the whole market

Question 2

Niche market

Answer 2

Products or services which are targeted towards a specific segment of a market

Question 3

Dynamic market

Answer 3

A market that is constantly changing

Question 4

Risk

Answer 4

A concept where there maybe a possible negative impact that may arise from a future event

Question 5

Uncertainty

Answer 5

Exists when the outcome of a particular situation is impossible to predict

Question 6

Economies of scale

Answer 6

Factors that cause costs per unit to fall when a firm operates at a higher level of production

Question 7

Product differentiation

Answer 7

The extent to which consumers perceive your brand/ product as being different from others

Question 8

Unique selling point

Answer 8

A consumer benefit that no rival can match, perhaps because it can be protected by a strong patent

Question 9

Market research

Answer 9

Gathers information about consumers, competitors and distributors within a firm’s market. A way of identifying consumers’ buying habits and attitudes to current and future products.

Question 10

Market share

Answer 10

Proportion of total market sales that a firm has

Question 11

Bias

Answer 11

A factor that causes research findings to be unrepresentative of the whole population

Question 12

Product orientation

Answer 12

An inward-looking approach focusing on innovation and research and development. Development products to create desire

Question 13

Market orientation

Answer 13

An outward looking approach focusing on identifying consumer needs and wants and tailoring product development towards it

Question 14

Primary research

Answer 14

Finding and collecting information first-hand

Question 15

Secondary research

Answer 15

Finding and collecting information which already exists

Question 16

Qualitative research

Answer 16

Research that is focused on obtaining in-depth detailed information. Can identify opinions and why consumers feel the way they do

Question 17

Leadership

Answer 17

Inspiring staff to achieve demanding goals

Question 18

Management

Answer 18

Responsible for putting ideas or policies into action, whilst controlling staff

Question 19

Charismatic Leadership

Answer 19

Leaders who can connect with an audience and who can get others to buy into their ideas.

Question 20

Hubris

Answer 20

Overweening arrogance leading to excessive self-confidence and therefore blindness to the risks being taken

Question 21

Entrepreneur

Answer 21

An individual who looks at business opportunities that exists and turns that idea into action

Question 22

Intrapreneurship

Answer 22

Practice of entrepreneurship in an established firm.

Question 23

Geographical mapping

Answer 23

Plotting on a map the locations of all existing businesses in your market, in order to show where all your competitors are

Question 24

Innovation

Answer 24

New ideas brought to the market

Question 25

Objective

Answer 25

Targets set that are SMART

Question 26

Corporate objective

Answer 26

Targets for the whole business, such as profits to rise by 20% a year for the next 10 years

Question 27

Functional objective

Answer 27

Objectives for each function (operations, marketing, HR and finance) which help to achieve the corporate objectives

Question 28

Budget

Answer 28

An agreed ceiling on the monthly/ yearly spending by any department of manager

Question 29

Unlimited liability

Answer 29

Owners are liable for any debts incurred by the business, even if this requires them to sell all their assets and possessions and become personally bankrupt

Question 30

Limited liability

Answer 30

Owners are not liable for the debts of the business; they can lose no more than the sum they invested

Question 31

Sole traders

Answer 31

A one-person business with unlimited liability, set up by an entrepreneur

Question 32

Partnerships

Answer 32

A type of business organisation comprising between 2 to 20 people whom pool money, skills and other resources and share profit and loss based upon the partnership agreement. Unlimited Liability

Question 33

Limited company

Answer 33

Company’s that have limited liability. They are considered to be a type of business structure whereby a company is considered a legally distinct body

Question 34

Franchise

Answer 34

A business that sells the rights to the use of its name and trading methods to local businesses

Question 35

Social enterprise

Answer 35

A business that focuses on putting its profits back into a strong social or environmental mission. Primarily social objectives rather than monetary

Question 36

Floatation

Answer 36

The process of offering a company’s shares for sale on the stock market for the first time

Question 37

Company

Answer 37

An organisation that sells goods or services in order to make money

Question 38

Incorporation

Answer 38

Establishing a business as a separate legal entity from its owners, and therefore giving the owners limited liability

Question 39

Registrar for companies

Answer 39

The government department which allows firms to be incorporated

Question 40

Opportunity cost

Answer 40

The cost of missing out on the next best alternative when making a decision

Question 41

trade off

Answer 41

Accepting less of one thing to achieve more of another (for example, slightly lower quality in exchange for cheapness)

Question 42

overtrading

Answer 42

When a business expands at a rate that cannot be sustained by its capital base

Question 43

Liquidity

Answer 43

The ability of a business to pay its bills on time, which all depends upon having enough cash in the bank