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1

Define limited liability.

The business and the shareholders that own it are distinct (separate) and so any debts can only only be taken from the busines and not the owners personal possessions.

2

Define unlimited limited liability.

There is no distinction between the business and the owner and so any debts that the business owes have to be payed off by the owner's personal assets.the amount a business owner can lose is unlimited. 

3

What is a sole trader?

A business structure where one person is the owner, the sole trader has no legal distinction from the business and has unlimited liability.

4

What are the advantages of being a sole trader?

  • independence, the sole trader can make all their own decsions including their own working hours for example
  • control, the sole trader has complete control over the usiness and any decsions eg product and price are theirs to make
  • the sole trader keeps 100% of the profits and can decide how those profits are used. 

5

What are the disadvantages of being a sole trader?

  • stress, as you are on your own you are the one who is resp[onsible for all decsions whcih can be stressful, especialy if you are ill and there might be no-one to help
  • no-one to share ideas, as such you may have skills in some areas buit not others so that can be dificult
  • unlimited liability, any buysiness debts are the responisbility of the owner and there is no limit to what they can lose, which may involve personal possessions such as a house

6

What is a partnership?

A type of business structure of between 2 and 20 partners, often the structure for professions such as doctors, solicitors and accountants.

7

What are the advantages of being in a partnership?

8

What are the disadvantages of being in a partnership?

9

private limited company

A type of business structure where the owners have incorporated and benefit from limited liability.

10

public limited company

A type of business structure that has its shares traded publicly on the stock exchange.

11

What are the advantages of being a plc (public limited company)?

12

What are the disadvantages of being a plc (public limited company)?

13

What are the advantages of being a private limited company?

14

What are the disadvantages of being a private limited company?

15

What are the disadvantages of operating as a franchise?

16

What are the advantages of operating as a franchise?

17

franchise

When one business gives another business permission to trade using its name and products in return for a fee and a share of its profits.

18

franchisee

An entrepreneur who pays a fee to trade using the name of the products of an established business.

19

franchisor

An established business that gives permission to an entrepreneur to trade using its name and products.

20

What are the advantages of a business conducting market research?

  • To identify and understand customer needs
  • To identify gaps in the market
  • To reduce risk
  • To inform business decisions.

21

Define primary research and identify 5 methods of conducting primary research.

Market research involves obtaining information about customers, potential customers or competitors which is carried out for the first time. Methods include:

  • Survey
  • Questionnaire
  • Observation
  • Interviews
  • Focus Groups (small group of people discussing a product)

22

Define secondary research and identify 5 methods of conducting secondary research. 

Secondary research involves obtaining information about market trends, compeitors and markets that already exists. methods include: 

  • Internet
  • Government Statistics and reports
  • Company Reports
  • Newspapers/magazines/books
  • Market reports

23

1. What is the difference between quantitative and qualitative data?

2. How are each collected? 

QuaLitavtive - Data is expressed in the form of opinions and judgements and is collected via open ended questions. 

QuaNtitavtive - Data is isexpressed as numbers, percentages and statistics and is collected via closed questions. 

24

Idenitfy 4 ways social media can be used to conduct market research? 

  • Posting a link to a survey
  • Conducting a poll
  • Idenitfying trends and opinions via hastags, retweets, shares and likes. 
  • Posting an open ended question on a site for qualitative responses or likes

25

What are the advanatges of using social media to conduct market research? 

Social media is a relatively cheap way of understanding customers, compared with traditional methods.

It allows a business to deepen their understanding of the market which helps them to Identify popular trends and develop or improve their products

It's more efficient, up to date information can be obtained quickly and in real time, which means the business can be mor responsive to changes in the market place.