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Flashcards

Business Studies UNIT 1 REVISON

dhruv bechra Business Studies A level English 51 cards

Cards in this deck (51)

  1. 1What is an Entrepreneur?Someone who wants to be their own boss for personal, monetary and ideological reasons.
  2. 2Entrepreneurs are important to businesses by?Creating jobs and opportunities.
    Are able to spot gaps in market.
  3. 3Motives to become an Entrepreneur?Made redundant from previous job.
    Spotted an opportunity.
    Want control over working life.
  4. 4Issues to becoming an Entrepreneur?Difficult to gain funding.
    Lack of experience.
    Not specialised in all fields of business.
  5. 5What is a Franchise?Established business that's ideas can be bought by Franchisees.
  6. 6What is a Franchisee?Someone who buys the business ideas of an established business.
    Example - McDonalds.
  7. 7What does a Franchisor control?Decor
    Product range
    Staff uniforms
  8. 8What does the Franchisee able to make decisions over?Staff recruitment and training
    Stock management
  9. 9Advantages of Franchising?Good way of starting business without starting fresh.
    Brand loyalty already exists.
    More likely to gain bank loan with less interest.
  10. 10What is Intellectual Property?Patents and copyrights are methods of preventing others using an idea (never fully protected).
  11. 11What is a Patent?Costs from £1K - £500k
    Not a criminal offence for breaking patent.
    Owner of patent can only claim damages through civil courts.
  12. 12What is a Trademark?A sign that distinguishes a product, service or brand by:
    Logos and pictures
    Smells
    Sounds
  13. 13What is a Copyright?Applies to written work.
    Occurs automatically.
    No need to pay for it.
    Example - books, song lyrics
  14. 14What 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.
  15. 15What is a Business Plan?Sets out how a business will be financed, marketed and put into practice.
  16. 16What does a Business Plan give?Gives direction to business.
    Helps decision making for business.
    Helps measure success of business.
  17. 17A good Business Plan should contain?How you will develop your business.
    How you will manage your finance.
  18. 18Benefits 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.
  19. 19Problems 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.
  20. 20What is Unlimited Liability?Owners of the business are fully responsible for any debts/expenses.
    Personal assets can be taken away.
  21. 21Who has Unlimited Liability?Sole Traders.
    Partnerships.
  22. 22Advantages of a Sole Trader?Make all decisions + keep all profits.
    No admin costs.
    Accounts don't have to be published.
  23. 23Disadvantages of a Sole Trader?Owner is solely responsible for business.
    Long hours of work involved.
    Absence causes problems in running business.
  24. 24Advantages of Partnerships?Additional skills + shared workload.
    More available capital to invest.
    No admin costs.
  25. 25Disadvantages of Partnerships?Unlimited Liability is shared.
    Loss of control + shared profits.
    May be disagreements in decision-making.
  26. 26What is Limited Liability?Any debts/expenses are only onto the business.
    Owners/shareholders don't have personal assets taken.
  27. 27Advantages of Limited Liability?Confidence given to shareholders to invest.
    Wider finance opportunities available.
  28. 28Disadvantages of Limited Liability?Higher annual costs.
    Must publish financial accounts.
  29. 29What is Primary Market Research?Gathering information directly from target market by:
    Observation/Experimentation
    Questionnaires
    Phone calls etc.
  30. 30What is Secondary Market Research?Collecting data that already exists by:
    Internet
    Newspapers
    Government produced data etc.
  31. 31Advantages of Primary Market Research?Specific to business.
    Can guarantee reliability + quality.
    Confidential to you + your business.
  32. 32Disadvantages of Primary Market Research?Can be time-consuming.
    Can be very expensive.
  33. 33Advantages of Secondary Market Research?Easy to access + collect.
    Usually cheap or free information.
    Saves time.
  34. 34Disadvantages of Secondary Market Research?May not be specific to needs of business.
    May not be accurate.
    Reliability + quality can be questioned.
  35. 35What 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)
  36. 36What is Qualitative Research?In-depth research into the motivations behind buying habits.
    Does not produce statistics.
    (Hard to collect in small-scale samples)
  37. 37What is Random Sampling?Everyone in the population has an equal chance of being chosen.
  38. 38What is Quota Sampling?Interviewees are selected in proportion to the consumer profile of the target market.
  39. 39What is Stratified Sampling?Interviewing people with specific characteristics.
  40. 40What are the factors that potentially influence the sampling method?Cost.
    Time.
  41. 41What 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.
  42. 42What 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)
  43. 43What is a National Market?Cater for the national market + is concerned about local competition.
    These businesses are located everywhere + use national media to advertise.
  44. 44What is an Electronic Market?Markets that used to be physical.
    (The stock exchange and exchange currency markets - Example)
  45. 45What are the Key Characteristics of electronic markets?Very price competitive - costs kept down.
    Can operate from anywhere.
    Market is cheap to enter.
  46. 46What is the Market Change Formula?New Data - Old Data = Market Change
  47. 47What is the % in Market Change Formula?Market Change / Old Figure x100 = % in Market Change
  48. 48What is the Market Share Formula?Company Revenue / Market Revenue x100 = % of Market Share
  49. 49Advantages of being a Market Leader?High distribution without much effort.
    Able to charge higher prices.
    Brand loyalty with customers.
  50. 50Advantages 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.
  51. 51Disadvantages of Market Segmentation?Only works if business can provide products and services that market needs/wants.

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A level Business Studies Flashcards on Business Studies UNIT 1 REVISON, created by dhruv bechra on 20/06/2017.
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dhruv bechra
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