Business

• What are the key content areas to cover for the paper one GCSE exam?


  Inflation, exchange rates, interest rates, and market research.
• Why is primary market research important for a firm?


  It is tailored for the intended purpose, improving customer understanding.
• What is one disadvantage of using primary market research?


  It requires a large sample size, leading to high costs.
• What is the impact of undertaking primary market research?


  • Improves understanding of customer needs
  • Allows for specific questions to be asked
  • Helps adjust marketing mix
  • Increases customer satisfaction and loyalty
  • Leads to increased sales
• What are examples of secondary market research sources?


  Internet, newspapers, and journals.
• What is the difference between qualitative and quantitative research?


  Qualitative research gathers descriptive data, while quantitative research collects numerical data.
• Give an example of how to gather qualitative research.


  Through focus groups or interviews.
• Give an example of how to gather quantitative research.


  Through observations or surveys.
• What is one benefit of secondary market research for small businesses?


  It may be free to obtain, leading to lower costs.
• What is one drawback of secondary market research?


  It may be unreliable, requiring caution in its use.
• What is market segmentation?


  • Dividing the market into segments with similar characteristics
  • Segments can be based on geography, age, interests, etc.
• What is one advantage of market segmentation?


  Products can be designed specifically for particular customers, improving satisfaction.
• What is a competitive environment in business?


  It is where firms seek cost advantages or differentiation from competitors.
• What is one impact of operating in a competitive environment?


  Firms need a clear source of differentiation to attract customers.
• What is cash flow?


  It is the movement of money into and out of a business.
• What is one benefit of good cash flow management?


  It ensures money is available to cover running costs.
• What is one way to improve cash flow?


  Using trade credit allows payment for stocks later.
• What is a justification for using retained profits as a source of finance?


  There is no interest to pay, making budgeting easier.
• What is unlimited liability in business ownership?


  Owners are personally responsible for all business debts.
• What is one impact of being an unincorporated business?


  Personal possessions are at risk if the business fails.
• What is one benefit of being a private limited company?


  It can raise more capital by selling shares.
• What are the impacts of running a partnership business?


  • A deed of partnership is needed to outline profit and task division
  • Reduces chances of arguments
  • Partners can specialize in their areas
  • Better response to customer needs
• What is one benefit of running a franchise?


  The franchisor provides training and support, improving chances of success.
• What are the benefits of setting up as a franchisor?


  • Enables rapid expansion
  • Franchisees raise capital
  • Ability to serve more customers
  • Increases royalty payments
  • Strengthens net cash flow
• What is one benefit of locating away from the main high street?

  Lower fixed costs lead to a lower break-even point.
• What are the key components of a business plan?


  • Vision for the business
  • Marketing strategy
  • Financial planning
  • Product description
  • Success criteria
  • SWOT analysis
• What is one benefit of completing a business plan?


  It helps plan finances, leading to better cost and revenue considerations.
• What is one impact of inflation on businesses?


  It may increase stock costs, leading to lower profit margins.
• What is one impact of inflation on consumers?


  Rising prices lead to lower disposable income, causing sales to fall.
• What happens when the exchange rate falls for British imports?


  Imported goods become more expensive, leading to rising import costs.
• What happens when the exchange rate falls for British exporters?


  Exports become cheaper in overseas markets, leading to increased sales.
• What is one impact of rising interest rates on businesses?


  Borrowing becomes more expensive, making expansion difficult.
• What is one impact of rising interest rates on consumers?


  Consumers may save more, leading to decreased spending.
• What is the marketing mix and its importance in business?


  • Comprises product, price, place, and promotion
  • Essential for evaluating business strategies
  • Important for case study applications
  • Requires balance in arguments for evaluations
• Why is it important to apply answers to case studies in exams?

  It demonstrates understanding of business theories and principles.
• Sole trader - one person who owns the whole business