Business basics

?
Name 3 reasons why businesses set up.
Be your own boss, Fill in a gap in the market, make money.
1 of 42
What forms of ownership could a start up business use?
Partnership, Ltd (private limited company), sole trader
2 of 42
What are 2 advantages of franchises?
Already established. Franchisors provide training.
3 of 42
Name 2 disadvantages of franchises
Limited in what you can do with your branch and you are linked to reputations of other companies.
4 of 42
What are 3 business aims?
Profit, growth, increase market shar
5 of 42
Define objective
Short term steps taken to achieve a long term goal
6 of 42
What is a stakeholder?
Anyone who has an interest or is affected by a business
7 of 42
What is a business plan?
A document outlining everything to do with a business
8 of 42
Name 3 different sections in a business plan
Financial forecasts, aims and objectives, location
9 of 42
Name 2 risks a new business faces
Competition, lack of customers
10 of 42
How can a new business minimize risk?
Market research. Employ people with experience
11 of 42
What are the key features of a sole trader?
Complete control. One owner. Unlimited liability
12 of 42
What are the key features of a partnership?
Unlimited liability, 2-20 owners and shared decision making with a deed of partnership.
13 of 42
Name the features of an Ltd
Maximum of 50 share holders. Limited liability. Share holders are mainly family and friends and they all must agree on decisions.
14 of 42
What factors could influence a businesses location?
proximity to customers, competition and labour. Access ability, availability or raw materials and cost
15 of 42
What market research options are there for a business with a limited budget?
Online survey. Internet research. Door to door. Analyse sales. Focus group
16 of 42
What are the elements of the marketing mix?
Product, price, place and promotion.
17 of 42
Why must a product meet a customers needs.
It needs to have appeal so that it will be purchased.
18 of 42
Explain the relationship between price and demand.
If you lower your prices there could be more customers and more revenue could be made. However, if the cost of production prices don't change then there is a chance that profits could reduce.
19 of 42
What promotion methods are there for a business with limited budget?
Internet advertising, local papers and leaflets
20 of 42
What is e-commerce?
Any business transaction online or electronically.
21 of 42
Why are job and batch methods of production suitable for a small scale business?
Lower demand in a small business means that you can produce them in batch. It can be cheaper in the long term.
22 of 42
How may a small business keep its production costs low?
Produce in bulk, buy in bulk, use cheaper provides and local producers
23 of 42
How can you ensure high quality?
Monitoring production, staff training and customer feedback
24 of 42
Why must a small business have good customer service?
They reley on the local community and depend on a small target audience.
25 of 42
What examples of good customer service could a small business use?
Good staff knowledge, helpful staff and motivated staff
26 of 42
Name one law that protects customers?
Trades standard description
27 of 42
How has ICT helped customer service develop?
Quicker and it can be accessed by a larger group.
28 of 42
What is the difference between full time and part time staff?
Part time = less that 30h a week. Full tine can do anything over 40h a week.
29 of 42
What internal and external methods of recruitment might a small business use?
Internal promotion. External is advertised to the public
30 of 42
What factors may determine the level of wages a small business pays staff?
Performance. Budget. Competition
31 of 42
What non-monetary rewards might a small business use to reward employees?
Company car and phone or reward days
32 of 42
How could a small business motivate staff?
Bonuses for good quality work. Staff discounts and annual leave. Training days are also good
33 of 42
What sources of finance are available?
Savings, loans, selling shares if you are an Ltd, overdrafts, borrow from friends and family and business sales income
34 of 42
What is a disadvantage of a loan?
You have to pay interest, which adds to the price
35 of 42
What is a cash flow statement
A document detailing the inflows and the outflows of cash in the business. It can identify periods of positive and negative cash flow where an overdraft may be needed.
36 of 42
Define variable costs
Costs that change as output changes
37 of 42
What is a commission?
An additional payment for achieving a level of sales.
38 of 42
What is motivation?
The will to work
39 of 42
What is consumer protection?
The rights designed to help customers when purchasing goods or services. They provide protection
40 of 42
What is an entrepreneur?
Someone who has the ability to take risks and organize the factors of production.
41 of 42
What is a niche market?
A small part of the market that an organisation is aiming it's product or service at.
42 of 42

Other cards in this set

Card 2

Front

What forms of ownership could a start up business use?

Back

Partnership, Ltd (private limited company), sole trader

Card 3

Front

What are 2 advantages of franchises?

Back

Preview of the front of card 3

Card 4

Front

Name 2 disadvantages of franchises

Back

Preview of the front of card 4

Card 5

Front

What are 3 business aims?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Unit 1 resources »