9368038
Description
Flashcards by dhruv bechra, updated more than 1 year ago
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Created by dhruv bechra
almost 7 years ago
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| Question | Answer |
| What is an Entrepreneur? | Someone who wants to be their own boss for personal, monetary and ideological reasons. |
| Entrepreneurs are important to businesses by? | Creating jobs and opportunities. Are able to spot gaps in market. |
| Motives to become an Entrepreneur? | Made redundant from previous job. Spotted an opportunity. Want control over working life. |
| Issues to becoming an Entrepreneur? | Difficult to gain funding. Lack of experience. Not specialised in all fields of business. |
| What is a Franchise? | Established business that's ideas can be bought by Franchisees. |
| What is a Franchisee? | Someone who buys the business ideas of an established business. Example - McDonalds. |
| What does a Franchisor control? | Decor Product range Staff uniforms |
| What does the Franchisee able to make decisions over? | Staff recruitment and training Stock management |
| Advantages of Franchising? | Good way of starting business without starting fresh. Brand loyalty already exists. More likely to gain bank loan with less interest. |
| What is Intellectual Property? | Patents and copyrights are methods of preventing others using an idea (never fully protected). |
| What is a Patent? | Costs from £1K - £500k Not a criminal offence for breaking patent. Owner of patent can only claim damages through civil courts. |
| What is a Trademark? | A sign that distinguishes a product, service or brand by: Logos and pictures Smells Sounds |
| What is a Copyright? | Applies to written work. Occurs automatically. No need to pay for it. Example - books, song lyrics |
| What is Adding Value? | Process of doing something to a product to increase the sale price. Products protected by patents can increase its value. Example - grated cheese is more expensive that a block of cheese. |
| What is a Business Plan? | Sets out how a business will be financed, marketed and put into practice. |
| What does a Business Plan give? | Gives direction to business. Helps decision making for business. Helps measure success of business. |
| A good Business Plan should contain? | How you will develop your business. How you will manage your finance. |
| Benefits of a Business Plan? | Allows entrepreneur to consider all aspects of business and eliminate failures. Makes entrepreneur aware of skills needed and they are missing. Venture capital may be gained. |
| Problems of a Business Plan? | It is only a plan (does not guarantee success). Business plan must be flexible to adapt to market changes. High sales expectations may cause overspending in areas. |
| What is Unlimited Liability? | Owners of the business are fully responsible for any debts/expenses. Personal assets can be taken away. |
| Who has Unlimited Liability? | Sole Traders. Partnerships. |
| Advantages of a Sole Trader? | Make all decisions + keep all profits. No admin costs. Accounts don't have to be published. |
| Disadvantages of a Sole Trader? | Owner is solely responsible for business. Long hours of work involved. Absence causes problems in running business. |
| Advantages of Partnerships? | Additional skills + shared workload. More available capital to invest. No admin costs. |
| Disadvantages of Partnerships? | Unlimited Liability is shared. Loss of control + shared profits. May be disagreements in decision-making. |
| What is Limited Liability? | Any debts/expenses are only onto the business. Owners/shareholders don't have personal assets taken. |
| Advantages of Limited Liability? | Confidence given to shareholders to invest. Wider finance opportunities available. |
| Disadvantages of Limited Liability? | Higher annual costs. Must publish financial accounts. |
| What is Primary Market Research? | Gathering information directly from target market by: Observation/Experimentation Questionnaires Phone calls etc. |
| What is Secondary Market Research? | Collecting data that already exists by: Internet Newspapers Government produced data etc. |
| Advantages of Primary Market Research? | Specific to business. Can guarantee reliability + quality. Confidential to you + your business. |
| Disadvantages of Primary Market Research? | Can be time-consuming. Can be very expensive. |
| Advantages of Secondary Market Research? | Easy to access + collect. Usually cheap or free information. Saves time. |
| Disadvantages of Secondary Market Research? | May not be specific to needs of business. May not be accurate. Reliability + quality can be questioned. |
| What is Quantitative Research? | Questions asked that usually provide a simple, numerical answer. (Can be hard to find valid data using this method in small-scale research) |
| What is Qualitative Research? | In-depth research into the motivations behind buying habits. Does not produce statistics. (Hard to collect in small-scale samples) |
| What is Random Sampling? | Everyone in the population has an equal chance of being chosen. |
| What is Quota Sampling? | Interviewees are selected in proportion to the consumer profile of the target market. |
| What is Stratified Sampling? | Interviewing people with specific characteristics. |
| What are the factors that potentially influence the sampling method? | Cost. Time. |
| What are the Key Elements to any market? | Size (how much is spent annually). The extent of how the market can be seperated into sections. Market share of the market. |
| What is a Local Market? | Small firms that don't care about the size of the national market. Only concerned with state of local market. (some small business may care) |
| What is a National Market? | Cater for the national market + is concerned about local competition. These businesses are located everywhere + use national media to advertise. |
| What is an Electronic Market? | Markets that used to be physical. (The stock exchange and exchange currency markets - Example) |
| What are the Key Characteristics of electronic markets? | Very price competitive - costs kept down. Can operate from anywhere. Market is cheap to enter. |
| What is the Market Change Formula? | New Data - Old Data = Market Change |
| What is the % in Market Change Formula? | Market Change / Old Figure x100 = % in Market Change |
| What is the Market Share Formula? | Company Revenue / Market Revenue x100 = % of Market Share |
| Advantages of being a Market Leader? | High distribution without much effort. Able to charge higher prices. Brand loyalty with customers. |
| Advantages of Market Segmentation? | Acknowledge that customers don't have same needs and wants. Products can appeal to different markets. Can target marketing efforts - be more efficient with resources. |
| Disadvantages of Market Segmentation? | Only works if business can provide products and services that market needs/wants. |
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