Business Studies

• Sole trader - one person owns the business
• Partnership - two or more people own the business
• Stakeholders are people or groups that have an interest in the business and its performance.
• Capacity: the maximum output a factory or business can produce or sell
• Organic growth is the growth of a business through internal expansion, such as by opening new branches or by increasing the number of employees.
• External growth is the growth of the business through acquisition or merger
• Mergers occur when two companies join together to form a larger company
• a takeover is when a business takes a majority stake in another business
• Market segmentation is the process of dividing a market into smaller groups of customers with similar needs and characteristics
• Primary research is the first hand information gathered by the researcher. It is usually done by asking questions to the customers or the target market.
• breaking even is when business make neither a profit or a loss
• Cashflow is the movement of cash in and out of the business
• Product life cycle traces the journey of a product from its launch and its development to its removal from the market
• Extension strategies are actions businesses take to increase the demand and sales of a product
• Unique selling point: A feature or quality that makes a product or service stand out from the competition
• Copyright: provides legal protection for the original expression of ideas in a creative work from being produced by others
• methods used by a business to change the price to gain edge over competitors

  Pricing Strategies
• The four P’s:

  •Price

  •Product

  •Place

  •promotion
• Ensuring that finished products meet the standards that are expected

  Quality control
• A section of a market that is controlled by a particular business

  Market Share