Business

• What is an entrepreneur?

  a risk taker who sets up a business with the aim to make a large profit
• Why are there entrepreneur?

  they want to learn new skills or be their own boss or for more flexibility
• What are the 3 motivators on being an entrepreneu?

  Financial, personal and social reasons
• What are entrepreneurs characteristics?

  They have confidence, motivation determination decision making ability initiative and analytic ability
• What is revenue?

  The amount of money a business earns
• What is total revenue?

  The total amount of money at a particular output level
• What is the total revenue calculation?

  Number of sales x selling price per unit
• What does breakeven mean?

  When there is no profit and no loss
• What are the four type of costs?

  Fixed, stepped, variable and total
• What is cash flow?

  The movement of money in and out of a business. It can be in form of receipts
• Cash flow versus profit

  Timing differences and noncurrent asset treatment
• Non-financial aims and objectives

  Ethical and corporate responsibility, diversification, employee engagement/satisfaction, expansion and customer satisfaction
• What are the six business structures?

  A sole trader, a partnership, a private Limited company, a public limited company, a franchise and cooperatives
• what is a private limited company?

  A privately held business entity with limited liability for its shareholders. They only sell shares to family and friends. There can be 2 to 50 shareholders. Their personal possessions are at risk
• What is a public limited company?

  A company whose shares are traded on a stock exchange and can be bought and sold by the public. They have a minimum of two shareholders which means they have limited liabilities no personal possessions at risk. They have a bigger public image and are very complicated to set up.
• What is a franchise?

  It when the owner of a business grants licensed to another business and an example of this is Burger King. franchises are easier as they are well known and it’s easy to gain customers and you can also get support from advisors. However it isn’t cheap and they need to stick with marketing activities.
• What is a cooperative?

  A cooperative is a business or organization owned and operated by its members, who share the profits and have a say in decision-making. They have like-minded people who work together voluntarily.
• Points about cooperatives:

  Lower costs and little operational control and difficult to expand
• What is the difference between a public sector and a private sector?

  A public sector is owned by the government, but a private sector is owned by private individuals
• What are the two organisational structures?

  Tall and flat
• What is the difference between a flat structure and a tall structure?

  A flat structure has a short chain of command and wide span of control. A two structure has a long chain of command and narrow span of control.
• What are two different ways of restructuring?

  Delayering and redundancies
• what is stakeholder engagement?

  there is internal which is within the business and external, which is outside the business
• What are the four p’s?

  Promotion price product and place
• What is a tangible product and an intangible product?

  A tangible product is something that you can touch, but an intangible product is something you cannot touch
• Promotion

  There are different types of cells promotions: for example competitors, buy one get one free, point of sale advertising and free gifts. There is also direct marketing, personal selling and promotional objectives
• Place

  This is where the availability of staff, customer location and location of raw materials are thought about. Also whether it should be e-commerce (internet) or not
• Price

  Supply and demand
• What is the equilibrium price?

  The price when supply equals demand exactly
• Name the seven pricing strategies

  Cost plus pricing, psychological pricing, price skimming, price penetration, loss leaders, competitive pricing and promotional pricing
• Name the five stages in the products life cycle

  First development, then introduction then growth after maturity finally decline
• What is quantitive data?

  Numerical data that can be measured or counted. it can be obtained from questionnaires chart graphs. It is easy quick and numerical.
• Qualitative data

  Non-numerical information that provides insights and understanding of the quality, characteristics, and attributes of a particular phenomenon
• Collecting qualitative data

  1. Interviews

  2. Observations

  3. Open-ended surveys
• What is primary research?

  Completed by business for their own research purposes. this can include observations, questionnaires phone interviews, focus groups and consumer trials
• What is secondary research?

  Research that is already completed data from other sources. This can include government reports news articles and reports research papers and purchased research material.
• Advantages and disadvantages of secondary research

  Some advantages are that already exists, saves time, wide range, free and quick access. Some disadvantages are that it can be out of date, may have to be bought and may not be relevant
• What is a mass market?

  They produce good on a large scale. Also known as economies of scale.
• What is a niche market?

  Something produced as a specialised and on a small scale. It is aimed, and fewer customers
• Two types of orientation types

  Market orientated and product orientated