Developing New Business Ideas Flashcards

Flashcards for Unit 1 - Developing New Business Ideas AS Level Edexcel 

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  • Created on: 17-12-12 16:02
What are features of an entrepreneur?
Risk Taking, Initiative, Creative, Determined, Resilient.
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Explain what an autocratic leadership style is. Give 1 + and 1 -
Strict Leadership, orders obeyed without question. + Instructions followed accurately and quickly. - Less effective where fresh ideas, flexible staff are valued.
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Explain what a paternalistic leadership style is. Give 1 + and 1 -
Employees seen as a key asset, leader still has authority, but staff respected. + Can win loyalty and motivate employees. - People may not work as hard ( less pressure )
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Explain what a democratic leadership style is. Give 1 + and 1 -
Employees Involved in decision making, whilst still ultimately making decisions. + Employees may make better ideas than boss alone. - Reaching decisions may take more time
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Explain what a laissez-faire leadership style is. Give 1 + and 1 -
Employees left to do things their own way. + Freedom allows less pressure, better ideas. - If wrong person they may spend time doing little/poor quality work.
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Giving priority to customers wishes over the actual product is called being...
Market Orientated
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What is market differentiation?
Building a strong brand and making your product/service different to the others in the market.
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What is a market niche?
A specialised sub-market with a specific range of products.
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Name the 5 factors that effect demand.
Population structure, tastes, substitutes, incomes, price.
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What does a rise in demand to the demand curve?
Shifts it to the right.
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What does a fall in demand do to the demand curve?
Shifts it to the left.
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What does a rise in supply do to the supply curve?
Shifts it to the right.
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What does a fall in supply do the the supply curve?
Shifts it to the left.
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What is primary market research?
Research that you have collected yourself.
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What is secondary market research?
Research that you did not collect yourself.
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What are commodity products?
Little differentiation, all standardised (e.g milk, petrol, potatoes)
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What is adding value?
Making the item/service worth more than it cost to provide.
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What is a stakeholder?
Stakeholders are anyone who is affected or has an intrest in the business.
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Name the 6 main stakeholder groups.
shareholders, employees, consumers, suppliers, creditors, local community.
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What is market mapping?
identifying key variables about a product, plotting where they existing brands or suppliers are in terms of combining the variables, then identifying any gaps in the market.
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What is Opportunity cost?
The term opportunity cost means the best alternative given up when a particular choice is made.
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What is the base rate? (define)
The base rate acts as a indicator around which other rates in the economy are set.
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What is inflation?
Inflation measures the rise in the general level of prices, generally over a 1 year period.
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What is a recession?
A recession is a period of falling income and employment.
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What is a 'strong pound'?
More of other currencies for each pound
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What is 'collateral'
Assets that can be reclaimed if payments are not made.
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What is leasing?
Borrowing premises and equipment in regular installments rather than buy it outright, so avoiding large initial payments
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What is a venture capitalist?
These are people/institutions that will either make loans or put money into the business for a share of its ownership
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What is the difference between fixed and variable costs?
Variable costs are costs that change with output.
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What is the break even point?
The level of output at which fixed and variable costs are just covered. Sales beyond this level bring profit.
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What is the cost of sales?
The direct cost of things used in the productive process, such as labour and materials, excluding all overheads.
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Calculation for Gross Profit
SALES REVENUE - VARIABLE COSTS
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Calculation for operating profit
SALES REVENUE - (VARIABLE+FIXED) COSTS
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Calculation for operating profit margin
(OPERATING PROFIT X 100) / SALES REVENUE
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Other cards in this set

Card 2

Front

Explain what an autocratic leadership style is. Give 1 + and 1 -

Back

Strict Leadership, orders obeyed without question. + Instructions followed accurately and quickly. - Less effective where fresh ideas, flexible staff are valued.

Card 3

Front

Explain what a paternalistic leadership style is. Give 1 + and 1 -

Back

Preview of the front of card 3

Card 4

Front

Explain what a democratic leadership style is. Give 1 + and 1 -

Back

Preview of the front of card 4

Card 5

Front

Explain what a laissez-faire leadership style is. Give 1 + and 1 -

Back

Preview of the front of card 5
View more cards

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