Bsc revision mock

• What is the definition of demand?

  Amount customers are willing to buy
• What does supply refer to?

  Amount of product available
• What does the x-axis represent in a demand curve?

  Quantity of product
• What does the y-axis represent in a demand curve?

  Price at which the good is sold
• How does an increase in cost affect demand?

  It decreases demand
• How does a decrease in cost affect demand?

  It increases demand
• What does a leftward shift in a demand curve indicate?

  Demand decreases
• What does a rightward shift in a demand curve indicate?

  Demand increases
• What is a market?

  A selling presence like a supermarket
• Who is a customer?

  Someone who purchases products
• What is a trade customer?

  Businesses that buy to resell
• What is a consumer?

  Someone who uses a product
• What is competition in a market?

  Multiple sellers of similar goods
• What are the different types of markets?

  • Consumer goods and service market (B2C)
  • Capital goods market (B2B)
  • Labour market
  • Mass market
  • Niche market
• What is a public limited company (PLC)?

  A legal entity that can issue shares
• What is an advantage of operating as a PLC?

  Can raise millions by issuing shares
• What is a disadvantage of operating as a PLC?

  More complicated and costly to set up
• What is a social enterprise?

  A business with a social objective
• What is a charity?

  Aims to create social impact
• What is an incorporated business?

  A business that is a legal entity
• Who are shareholders?

  Owners of a company
• What is a sole trader?

  A business owned by one person
• What is an advantage of being a sole trader?

  Full control over the business
• What is a disadvantage of being a sole trader?

  Unlimited liability for debts
• What is a partnership?

  Joining of 2-20 people in business
• What is a partnership contract?

  Agreement on profit split and responsibilities
• What is a unique selling point (USP)?

  Feature that differentiates a product
• What is brand loyalty?

  Customers' commitment to a brand
• What is a cost advantage?

  Lower costs than competitors
• What is the purpose of business activity?

  To provide goods and services to customers
• What is value added in business?

  Difference between input costs and output value
• What is the role of an entrepreneur?

  To identify and exploit market opportunities
• Why do many startups fail?

  Lack of market research and planning
• What are the advantages and disadvantages of partnerships?

  Advantages:

  • Easy to set up
  • More capital available
  • Minimal paperwork
  • More specialist skills

  
  

  Disadvantages:

  • Loss of control
  • Unlimited liability
  • Decisions affect all partners
• What are the advantages and disadvantages of being a sole trader?

  Advantages:

  • Full control
  • Easy to set up
  • Keep all profits

  
  

  Disadvantages:

  • Unlimited liability
  • Long working hours
  • Limited expertise
• What are the benefits and drawbacks of differentiation advantages?

  Benefits:

  • Higher prices can be charged
  • Brand loyalty

  
  

  Drawbacks:

  • Costly and time-consuming
  • Potential competition threats
• What are the methods to achieve cost advantage?

  • Utilize economies of scale
  • Use cheaper advertising methods
  • Invest in technology
  • Source cheaper suppliers
• What is the importance of adding value in business?

  • Compete effectively in the marketplace
  • Attract more customers
  • Justify higher prices
• What are the characteristics of starting a business?

  1. Creating jobs
  2. Being your own boss
  3. Generating profits
  4. Encouraging innovation
  5. Creating wealth
• What is the definition of an enterprise?

  • A large-scale organization
  • Engaged in commercial activities