Theme 1 Practise Qu's Flashcards
(2)
Identify two characteristics of a successful entrepreneuer.
- Risk taking
- Resilient
(2)
Identify two risks an entrepreneur may face when starting a business.
- Lack of security
- Business Failure (50% of businesses fail to sruvive within the first 5 years).
(2)
What is “limited liability”?
- Where the owner’s assets AREN’T lost
- when the firm FAILS.
(3)
Explain why do new ideas come about in a new business?
- Changes in TECHNOLOGY
- REDUCES the impact of technology becoming OBSELETE.
- able to MEET customer’s needs and wants.
(3)
Explain one way an entrepreneur can reduce the risk of business failure.
- Conducting MARKET RESEARCH
- Understanding customer’s specification from QUANTITATIVE AND QUALITATIVE DATA.
- Firm can tailor its products to customer’s specifications, increasing success.
(3)
Explain one way a new business can add value to its product.
- ADAPTING a product
- creates a USP
- customers would be intruiged by the product’s QUALITY.
(3)
Outline one impact of competition on a new business.
-New business LACK SURVIVAL.
- Many other DOMINATING firms are in the SIMILAR field.
- Reduces CUSTOMER ATTRACTION.
(3)
Outline one reason why a business needs to identify customer needs.
- Changes in CUSTOMER SPECIFICATION.
- TAILORING products to customer specification.
- INCREASES customer satisfaction.
(6)
Discuss the impact on a small business from adapting existing products to
develop new business ideas.
- Less INNOVATION.
- Customers may not be SATISFIED.
- Customers may go to COMPETITORS.
- Adding value.
- Creates a USP.
- Customers intruiged by QUALITY.
(3)
Explain one advantage of customers from increased competition.
-Customers have more CHOICE.
- more competition = more products being AVAILABLE in the MARKET.
- Customers able to buy a product based on their NEEDS.
(3)
Explain one reward for an entrepreneur when starting a new business.
- Profit
- Total Revenue EXCEEDS Total Costs.
- Able to be SOLVENT.
(1)
Define primary market research.
Gathering CONCRETE pieces of data that has NOT been CREATED by OTHERS.
(3)
Explain one way a business can use market segmentation to target customers.
- Lifestyle.
- Able to TAILOR products/services to customer’s specifications.
- Customers will REPEAT PURCHASE if products meet their NEEDS.
(3)
Outline a benefit of using secondary research.
- Identify GAPS in MARKET
- Research conducted by OTHERS.
- Identify CUSTOMER’S SEPCIFICATION.
(4)
List two examples of primary and secondary research.
Primary Research:
- Questionnaires
- Focus Groups
Secondary Research:
- Internet
- Government
(3)
List 3 financial objectives
- Survival
- Profit
- Financial Security
(3)
List 3 non-financial objectives
- Independence
- Social objectives
- Personal Satisfaction
(1)
What is e-commerce?
The online transactions made via PCs.
(4)
List two benefits and drawbacks of e-commerce.
BENEFITS:
- Accessing wider markets
- 24/7
DRAWBACKS:
- Competition
- Limited connections with customers.
(6)
Discuss the benefits of a small business using e-commerce.
- Able to have access to WIDER MARKETS
- Able to compare with COMPETITORS.
- Finding and filling a gap in their MARKET
- Providing increased PRODUCT RANGE
- INCREASES customer attention
- REPEAT PURCHASES via services occur often.
(4)
List the four Proximity factors affecting the location of the firm.
Proximity to…
- MARKET
- COMPETITORS
- MATERIALS
- LABOUR
(3)
Explain one way that a small business could locate itself to grow.
- Proximity to MARKET.
- Develops convenience.
- Increases target market.
(3)
Explain one way that the internet may affect where a small business chooses to locate.
- One way is the efficiency of its location.
- The firm could locate somewhere less populated as it would be cheaper for them.
- Thus, can attract customers through either physical store or via the internet.
(1)
Which one of these isnt a factor of the marketting mix.
A) Promotion
B) Price
C) Produce
D) Product
C) Produce
