8585092
Description
Flashcards by Dan Castell, updated more than 1 year ago
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Created by Dan Castell
almost 7 years ago
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| Question | Answer |
| Why start a business? | - Be your own boss - Personal fulfilment - Decide your own salary - Provide services or products - Lack of other employment |
| What does it take to be a successful entrepreneur? | - Perseverance - Takes Initiative - Competitiveness - Self-confidence -Toughness |
| What is unlimited liability? | If the business foes bankrupt, the owner stands to pay the entirety of the debt, and can lose personal possessions if unable to clear the debt. |
| What Is limited liability? | If the business goes bankrupt, the owner stands to lose only their own investments in the business . |
| What are the functional areas of a business? | - Finances - Human Resources - Marketing - Production - Purchasing - Sales |
| What is a hierarchical organisation structure? | An organisation structure with lots of layers, with each manager in charge of several people. |
| What is the primary objective for most businesses? | To be profitable. |
| What reasons are there for business success? | - Selling popular products - Charging the maximum customers are willing to pay for a product - Staying competitively viable - Keeping suppliers and staff happy - Employing quality staff |
| What uncertainties do businesses have to deal with? | - Changes in the market - Increased competition - External influences e.g. political decisions involving business laws |
| How do businesses deal with uncertainties? | - Reducing/increasing prices - Releasing new products - Changing existing products |
| What methods do businesses use to measure customer satisfaction? | - Monitoring customer complaints - Customer panels - Questionnaires - Secret shoppers |
| Why do businesses measure customer satisfaction? | The markets are competitive - they want to persuade their customers to continue purchasing products from them and not their competitors. |
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