unit 1 gcse business

Question 1

what is a need?

Answer 1

it is a basic you need to survive like food water, shelter warmth and basic clothing.

Question 2

What is a want?

Answer 2

it is any other items that are luxury. Wants are infinite

Question 3

what is primary research?

Answer 3

research that does not already exist and you collect yourself.

Question 4

Give 2 examples of primary research?

Answer 4

questionnaires
surveys
observations
consumer panels

Question 5

What is secondary research?

Answer 5

Information that already exists or has been collected by a third party

Question 6

Give 2 examples of secondary research?

Answer 6

Sales figures
specialist magazines
competitor information
trade magazines

Question 7

What is a market map?

Answer 7

a grid which shows 2 components for example quality and price.

Question 8

What is a gap in the market?

Answer 8

An area of the market that is not currently covered by existing products or companies. identified with a market map.

Question 9

What is a niche market product?

Answer 9

a product that is aimed at a small section of the market or is specialist.

Question 10

give an example of a niche product.

Answer 10

bespoke wedding dresses, Morgan cars.

Question 11

What is a mass market product?

Answer 11

a product that is aimed at the whole market.

Question 12

Give an example of a mass market product

Answer 12

dairy milk
Walkers Crisps
Ford Focus
Coke
Kingsmill bread

Question 13

What is a SWOT?

Answer 13

A way of identifying a companies strengths weaknesses and external opportunities and threats.

Question 14

What does it mean to add value?

Answer 14

it is a way of being able to charge more for the final product than for its individual components

Question 15

What is a Franchise?

Answer 15

Where a company sells the right to use the company brand and products in exchange for a fee and a percentage of the profit.

Question 16

What is a franchisee?

Answer 16

the person that buys a franchise

Question 17

What is a franchisor?

Answer 17

the person that sells a franchise

Question 18

Name 3 types of ownership that could be used for a new business.

Answer 18

soletrader
partnership
franchise

Question 19

What factors should be considered when considering location?

Answer 19

Communication
parking
Access to workers
Access to customers
Location of raw materials
location of competitors

Question 20

What is a good?

Answer 20

a physical product you can touch and see

Question 21

What is a service?

Answer 21

a non physical item, for example a cleaning service or beautician

Question 22

What is a durable good?

Answer 22

a good that can be used again and again e.g. a washing machine

Question 23

What is a perishable good?

Answer 23

a good that has a shelf life and will go off. e.g bread

Question 24

Name three qualities of an entrepreneur.

Answer 24

risk taking, hard working,motivated, innovative, creative, problem solver,

Question 25

Name three motivations of a entrepreneur?

Answer 25

money, working for themselves, ability to chose own working hours, love of work,

Question 26

What is the Marketing Mix?

Answer 26

Product Price Place Promotion. These need to be correct before a product will be successful.

Question 27

What is a business plan?

Answer 27

A document a person completes when they intend to start or grow a business. Banks want to see a business plan before lending money.

Question 28

What is qualititive research?

Answer 28

Where the information collected is numerical

Question 29

What is quantitative research?

Answer 29

Where the information collected is about opinion

Question 30

What does limited liability mean?

Answer 30

That the owner can only loos the money invested in the company not anything more.

Question 31

what does unlimited liability mean?

Answer 31

That the owner can be held resposible for the debts of the company and could loose personal possessions.

Question 32

What type of company can be unlimited liability?

Answer 32

sole trader or partnership.

Question 33

What type of company would be limited liability?

Answer 33

LTD or PLC

Question 34

What is the business cycle?

Answer 34

It is a cycle that the economy goes through, from recession to Boom

Question 35

What is competitive advantage?

Answer 35

an advantage that a firm has over another firm, eg better product or lower price

Question 36

What does innovation mean?

Answer 36

original or new ideas to enter the market

Question 37

what is deliberate creativity?

Answer 37

using a range of technique to encourage people to be creative in their thinking.

Question 38

what is a cash flow forecast?

Answer 38

it is a finance document that estimates the inflows and outflows of money in the company. Banks like to see these before they lend money.

Question 39

On a cash flow what is an inflow?

Answer 39

Money coming into the company

Question 40

On a cash flow what is a outflow?

Answer 40

Money going out of the company

Question 41

What is a long term source of finance?

Answer 41

It is money borrowed for a term of 5 years or more

Question 42

What is a short term source of finance?

Answer 42

It is money borrowed for less than a year.

Question 43

What is an internal source of finance?

Answer 43

It is money that is available within the company

Question 44

What is an external source of finance?

Answer 44

it is money that is obtained from outside the company

Question 45

What is a stake holder?

Answer 45

Any person or group that has an interest in the business

Question 46

Give 3 examples of stakeholders.

Answer 46

employees, managers, owners, customers, suppliers, pressure groups, local residents.

Question 47

Give 2 examples of internal sources of finance.

Answer 47

retained profit, owners money

Question 48

Give 2 examples of external sources of finance.

Answer 48

loan, selling shares, overdraft, venuture capitalist, trade credit

Question 49

What is a boom?

Answer 49

a period of high output and growth in the economy

Question 50

What is a recession?

Answer 50

a period of low output with little or no growth in the economy

Question 51

What does the term interest rates mean?

Answer 51

the amount charged as a percentage of money borrowed.

Question 52

If the pound is weak against the euro what does it mean for UK small businesses?

Answer 52

It means products they buy from Europe become more expensive.

Question 53

If the pound is strong against the euro what does it mean for UK small businesses?

Answer 53

it means they can buy products from Europe more cheaply

Question 54

What does the exchange rate mean?

Answer 54

it is the value of one currency against another.

Question 55

If interest rates go up what does this mean for small businesses?

Answer 55

it means that they will have to pay more for money borrowed, but also customers may have less disposable income.

Question 56

If interest rates go down what does it mean for small businesses?

Answer 56

It means they can borrow money more cheaply and customers may have more disposable income

Question 57

if the pound is strong against the euro what does it mean for consumers?

Answer 57

For people living in the UK it becomes cheaper to buy products from abroad.

Question 58

What is demand?

Answer 58

the consumers desire and willingness to pay for a product

Question 59

What is Supply?

Answer 59

the total amount of a good that a producer is willing and able to supply on the market at a given price

Question 60

What would happen to demand of an iphone if supply was low?

Answer 60

The price would increase

Question 61

What would happen to the price of a coat if the demand for it was very low?

Answer 61

The price would decrease