Theme 1.4 Flashcards
Making the business effective (26 cards)
What is the primary goal of a business?
To maximize profit while satisfying customer needs.
True or False: Effective communication is essential for a business’s success.
True
What does the term ‘stakeholders’ refer to?
Individuals or groups that have an interest in the success of a business.
Fill in the blank: A business’s __________ is a detailed plan outlining its goals and the strategies to achieve them.
business plan
What is meant by ‘adding value’ in a business context?
Enhancing a product or service to increase its worth to customers.
What is a competitive advantage?
A unique edge that allows a business to outperform its competitors.
Multiple choice: Which of the following is NOT a factor of production? A) Land B) Capital C) Marketing D) Labor
C) Marketing
True or False: Customer feedback is not important for improving business effectiveness.
False
What role does market research play in a business?
It helps businesses understand customer needs and market trends.
Fill in the blank: __________ refers to the amount of goods or services that consumers are willing and able to purchase.
Demand
What is the purpose of a SWOT analysis?
To assess a business’s Strengths, Weaknesses, Opportunities, and Threats.
Multiple choice: Which strategy focuses on reducing costs? A) Differentiation B) Cost leadership C) Diversification D) Market penetration
B) Cost leadership
What does ‘operational efficiency’ mean?
The ability to deliver products or services with minimal waste and maximum productivity.
True or False: A business’s culture can impact employee performance.
True
What is the significance of customer loyalty?
It leads to repeat business and can increase profitability.
Fill in the blank: __________ is the process of planning, organizing, leading, and controlling resources to achieve specific goals.
Management
What are the four Ps of marketing?
Product, Price, Place, Promotion.
Multiple choice: Which of the following is a qualitative research method? A) Surveys B) Interviews C) Experiments D) Observations
B) Interviews
What is meant by ‘business ethics’?
The principles that guide the behavior of individuals and organizations in business.
True or False: All businesses must comply with the law to operate effectively.
True
What is the purpose of financial forecasting?
To predict future revenues and expenses for better financial planning.
Fill in the blank: __________ is the practice of promoting a product by highlighting its unique features.
Product differentiation
What does ‘scalability’ refer to in a business?
The ability to grow and manage increased demand without compromising performance.
Multiple choice: Which of the following is a fixed cost? A) Rent B) Raw materials C) Wages D) Utilities
A) Rent
