1
Q
What is capital expenditure?
A
Capital expenditure refers to spending on fixed assets such as equipment
2
Q
What is the purpose of legislation?
A
Legislation refers to laws and regulations passed by governments that require businesses and individuals to conduct their behaviour in a particular manner.
3
Q
What does a market map provide insight into?
A
A market map provides insight into the competitive environment at a specific point in time.
4
Q
What can the owner of shares in a company do with them?
A
The owner can sell the shares
5
Q
What does the term ‘place’ refer to in a business context?
A
The term ‘place’ refers to the physical location of the business and the distribution pathway through which the product travels to reach the end customer.
6
Q
What are the main factors that lead to the emergence of new business ideas?
A
New business ideas often arise due to changes in technology
7
Q
What is the purpose of using a sample in market research?
A
The results from the sample are used to make inferences about the wider population.
8
Q
What is the primary objective of shareholders in a company?
A
The primary objective of shareholders is to make the company profitable and generate a high return on their investment.
9
Q
How can operational decisions be affected by business rates and taxes?
A
Operational decisions may be affected by increases in business rates and taxes related to employing workers
10
Q
Who usually makes decisions in a company?
A
Decision-making often rests with the person appointed as the Managing Director or CEO.
11
Q
How does choosing the most efficient location or distribution network impact a business?
A
Choosing the most efficient location or distribution network leads to lower costs and greater profits for the business.
12
Q
What is competition in a market context?
A
Competition occurs when at least two businesses are providing goods or services to the same target market.
13
Q
What is operating expenditure?
A
Operating expenditure is spending on raw materials or day-to-day expenses such as wages or utilities.
14
Q
What are the three main areas of legislation that impact businesses?
A
Consumer protection; Employee protection; Health and safety legislation
15
Q
How do successful businesses recognize and act on new opportunities?
A
Successful businesses identify opportunities created by market changes and develop innovative solutions to meet the evolving needs of customers.
16
Q
How can businesses reach a wide range of respondents in market research?
A
Businesses can use online survey tools such as Survey Monkey to reach a wide range of respondents.
17
Q
What is the business impact of changes in the unemployment rate?
A
The impact on business of changes in the unemployment rate depends on the type of skill required. As unemployment falls
18
Q
What might a shareholder of Apple expect from the company?
A
A shareholder of Apple may expect the company to release new products and increase sales to enhance the value of their shares.
19
Q
What are the two main categories of finance sources for businesses?
A
The two main categories of finance sources for businesses are short-term and long-term sources.
20
Q
What does consumer protection legislation aim to ensure?
A
Consumer protection legislation aims to ensure that consumers are treated fairly by companies
21
Q
How does the number of businesses in a market affect competition?
A
The more businesses in the market
22
Q
What does ‘limited liability’ mean for business owners?
A
Limited liability means that the owners are not personally responsible for the company’s debts.
23
Q
What role does technology play in the creation of new business opportunities?
A
Advancements in technology can create new opportunities for businesses to develop innovative products and services
24
Q
In a competitive environment
A
how might the marketing mix change?
25
What is observation in market research?
Observation involves hiring someone to study consumer behavior in a store or assess potential consumer traffic.
26
What are the primary objectives of employees?
Employees primarily aim to earn a living
27
What happens to salaries as the supply of skilled workers decreases?
As the supply of skilled workers decreases
28
What is an overdraft?
An overdraft is an arrangement with a bank allowing a business to spend more money than it has in its current account
29
What is a benefit of being a limited company regarding finance?
Limited companies have access to greater finance and capital.
30
What are the two types of competition?
Direct competition: When businesses target customers with exactly the same product; Indirect competition: When firms sell different products but compete for customers' disposable income.
31
What exceptional working conditions do Google employees in California enjoy?
Google employees in California enjoy benefits such as sleeping pods
32
How does the unemployment rate affect the hiring costs for unskilled workers?
When the unemployment rate falls
33
How do changes in consumer demand influence new business development?
Consumer demand evolves over time
34
How can meeting consumer protection laws affect businesses?
Meeting consumer protection laws can increase business expenditure and potentially reduce profitability; however
35
What factors influence how businesses adapt their marketing mix?
The specific elements that businesses change may depend on the industry
36
How can researchers utilize observation in market research?
Researchers can observe the impact of packaging or product placement on consumer choice.
37
What benefits does competition provide to customers?
Lower prices; Better quality products; Improved customer service
38
What is trade credit?
Trade credit is an agreement with suppliers allowing businesses to buy raw materials or stock to be paid for at a later date
39
How does owning shares make transferring ownership easier?
Shares can be sold
40
What is the aim of employee protection legislation?
Employee protection legislation aims to prevent the exploitation of workers
41
What is the role of managers in a company?
Managers are responsible for the day-to-day operations of a company
42
What role does price play in a market with many substitutes?
In markets with many substitutes
43
What happens to products and services that become obsolete?
As products and services become outdated due to technological advancements or shifting consumer preferences
44
What distinguishes interviews from surveys in market research?
Interviews involve an interviewer asking questions
45
What is the relationship between unemployment rates and labor costs?
Generally
46
What are some of the benefits of complying with employee protection legislation?
Avoiding unwanted media attention; Reducing legal action risk; Attracting new employees
47
What is share capital?
Share capital is finance raised from the sale of shares in a limited company
48
How does the absence of competition affect businesses?
Absence of competition reduces incentives for businesses to innovate
49
How can businesses differentiate their products in competitive markets?
Businesses can differentiate their products by improving quality
50
What professional advantages does a limited company have?
A limited company can have a professional image and reputation.
51
What actions can businesses take in response to changes in technology?
Businesses can invest in new technology to improve products
52
What distinguishes original ideas from adapted ideas in business?
Original ideas are unique concepts that arise from identifying unmet market gaps
53
What is test marketing?
Test marketing involves providing free samples to the target market to gauge their response to a product.
54
What might a manager of McDonald's want to achieve?
A manager of McDonald's may want to increase restaurant sales and reduce costs by improving efficiency.
55
What are bank loans?
Bank loans are sums of money borrowed from a bank
56
Who are suppliers and what is their primary objective?
Suppliers are individuals or businesses providing goods or services
57
Can you provide an example of an original business idea?
An example of an original idea is Nutrigene
58
How can businesses respond to changes in legislation?
Businesses can comply with new regulations
59
What factors do businesses assess when judging their competitors?
Price; Quality; Location; Product range; Customer service
60
What are some disadvantages of setting up a limited company?
It can be more expensive and time-consuming to set up and has complex legal requirements.
61
What are some key areas covered by health and safety legislation?
Provision of adequate breaks; Temperature and noise levels; Provision of safety equipment; Hygienic working conditions; Preventing stress
62
What type of marketing expenditures may businesses need to increase in competitive environments?
In competitive environments
63
What are focus groups in market research?
Focus groups are free-range discussions led by a marketing specialist to collect detailed feedback on the marketing mix from a small group.
64
What is crowdfunding?
Crowdfunding is the process of raising finance from a large number of small investors via online platforms
65
What is required annually for limited companies?
Annual financial reporting and auditing are required.
66
What types of data are involved in market research?
Market research data can be quantitative (based on numbers) or qualitative (based on descriptions and impressions).
67
How can health and safety legislation financially impact businesses?
Compliance may incur costs related to staff training
68
What competitive advantage does location offer to businesses?
Location and distribution channels can provide competitive advantages by allowing businesses to operate in areas with high foot traffic or use innovative online channels.
69
What is the advantage of competitors offering lower prices?
They can attract price-sensitive customers and gain economies of scale leading to higher profits.
70
What is an example of a relationship between a supplier and a company?
Busco Sugar Milling Co.
71
What strategies can businesses implement to adapt to changes in the economic climate?
Businesses can diversify their products to reduce reliance on a single market
72
What is an example of adapting an existing product or service?
Uber adapted the traditional taxi service by providing a more convenient and efficient solution via a mobile app.
73
What is retained profit?
Retained profit is profit generated in previous years that has not been distributed to owners and is reinvested back into the business.
74
What challenge do competitors relying solely on low prices face?
They may struggle to maintain profitability if customers do not perceive the quality of their products to be adequate.
75
What does the economic climate refer to?
The economic climate refers to the overall performance of the UK economy
76
Why might convenience store locations attract local customers?
Convenience store locations attract local customers as they provide easy access to essential items
77
What are the limitations of qualitative data in market research?
Qualitative data may lack reliability due to small sample sizes and can be influenced by the opinions of others.
78
Why might shareholders have little control over a company?
Shareholders often have little control because the founder usually imposes their agenda.
79
Why is understanding customer needs crucial for business success?
Understanding customer needs enables businesses to thrive by effectively meeting the essential needs and wants
80
What do customers primarily seek from a business?
Customers primarily seek high-quality products or services at a fair price along with good customer service and a positive experience.
81
How have service-based businesses adapted their operations in response to changing market conditions?
Many service-based businesses have established remote operations with employees working from home
82
How can high-quality products benefit competitors?
High-quality products can differentiate a brand
83
What is franchising?
Franchising is a business model where an individual (franchisee) buys the rights to operate a business using the franchisor's branding and receive support.
84
What are the effects of increasing GDP growth on businesses?
Increasing GDP growth typically leads to rising incomes
85
What are the limitations of quantitative data in market research?
Quantitative data may be unrepresentative due to small sample sizes
86
What is venture capital?
Venture capital involves investing in higher-risk businesses
87
What is market research and why is it important?
Market research is the systematic collection and analysis of data about a market. It helps businesses reduce risk when launching products
88
What might a customer of Nike expect from the company?
A customer of Nike may expect high-quality shoes at a reasonable price and prompt resolution of customer concerns.
89
What happens to businesses when GDP growth decreases?
Decreasing GDP growth results in falling incomes
90
What is a potential drawback of focusing solely on product quality?
Competitors may struggle against lower-priced rivals if customers do not focus on the higher quality.
91
What must businesses continuously do to respond to changing consumer needs?
Businesses must constantly evolve their marketing mix in response to changing market conditions and feedback from customers.
92
How has social media impacted market research?
Social media allows for faster communication and data collection
93
What is unlimited liability?
Unlimited liability means that business owners are fully responsible for all debts owed by the business
94
What does a franchisee gain from a franchisor?
The franchisee receives training
95
What are the two main categories of market research methods?
Market research methods are broadly classified into primary research
96
What are pressure groups and what is their aim?
Pressure groups are organizations that seek to influence business or government policies
97
Name three well-known food franchise examples.
McDonald's; KFC; Subway
98
How does household income affect businesses selling inferior goods?
When household income rises
99
Why is location important for competitive advantage?
Easily accessible locations can attract more customers compared to rivals who are located further away.
100
What is market segmentation?
Market segmentation is the process of dividing a single market into sub-markets based on different consumer characteristics.
101
What is limited liability?
Limited liability protects owners (shareholders) of companies
102
What are some advantages of secondary market research?
Advantages of secondary research include quicker data collection
103
How can changing consumer needs affect pricing strategies during a recession?
During a recession
104
How do local communities interact with businesses?
Local communities aim for businesses to positively impact the community
105
What are the advantages of being a sole trader?
Advantages include easy setup
106
What are two advantages of owning a franchise?
Centralized advertising through a well-recognized brand; Training provided by the franchisor.
107
What advantage does a wide product range offer businesses?
A wide product range can attract a broader customer base and increase customer loyalty by meeting diverse needs.
108
What is an advantage of market segmentation?
Market segmentation recognizes diverse consumer tastes and allows for targeted marketing strategies.
109
What is inflation and how is it measured?
Inflation is the general rise in prices in an economy over time
110
What are the drawbacks of relying on secondary market research?
Drawbacks include potential irrelevance of information
111
What recent consumer trend has influenced the introduction of new food products?
The growing demand for plant-based foods due to more consumers adopting vegan or vegetarian lifestyles has influenced the introduction of new products like plant-based meat substitutes.
112
What is the government's role in relation to businesses?
The government is responsible for creating and enforcing laws and regulations that affect businesses
113
What challenges do competitors with a large product range face?
They may struggle to manage complexity and maintain consistent quality across all products.
114
What are the disadvantages of being a partnership?
Disadvantages include unlimited liability
115
How can business activity affect stakeholders?
Business activity can impact stakeholders by affecting investment value for shareholders
116
What is a disadvantage of market segmentation?
Segments may be too small to be profitable
117
What are two disadvantages of owning a franchise?
Startup and royalty costs can be high; Quality control management can lead to loss of franchise rights.
118
How has digital marketing changed in response to consumer behavior?
There has been a shift towards digital marketing as consumers rely on social media to inform their purchasing decisions
119
What is the most widely used primary research method?
Surveys are the most widely used method for gathering primary research
120
What are some business challenges associated with rapid inflation?
Increased business costs; Higher loan repayments; Changes in consumer spending habits; Demands for higher wages; Increased raw material costs
121
How can customer service contribute to a business's competitive advantage?
Excellent customer service can establish loyalty and generate positive word-of-mouth recommendations.
122
What influences business location decisions?
Factors include proximity to market
123
What is market mapping?
Market mapping is a tool for visually identifying the position of a product in relation to competitors based on selected criteria.
124
In what ways can stakeholders impact business activity?
Stakeholders can influence business activity through customer feedback
125
What is a private limited company?
A private limited company (Ltd) is a business structure in which ownership is divided into shares owned by shareholders
126
How has the rise of e-commerce impacted product distribution?
The rise of e-commerce has enabled consumers to shop online and have products delivered to their doorstep
127
How do exchange rates impact importing and exporting businesses?
A stronger currency can make exports more expensive and imports cheaper
128
Why is proximity to the market important?
Proximity to the market reduces transportation costs and increases accessibility to potential customers.
129
What does a saturated market indicate on a market map?
A saturated market indicates no opportunities for market niches
130
What impact does new technology have on the marketing mix?
New technology has revolutionized the marketing mix by changing how businesses create
131
What impact does competition have on business decision-making?
Competition influences pricing
132
What conflicts can arise between stakeholders?
Conflicts can arise from differing priorities
133
What is the effect of rising interest rates on businesses?
Rising interest rates increase loan repayment costs
134
What are business aims?
Business aims are the long-term aspirations of an organization.
135
How does proximity to labor affect businesses?
Businesses often locate near areas with a high concentration of skilled labor for efficient operations.
136
What is an example of stakeholder conflict involving employees?
In 2020
137
What is the impact of increased taxation on businesses?
Revenue may fall due to decreased disposable income for customers; Business costs rise due to increased taxes like VAT; Higher prices may lead to lower sales and reduced profits.
138
What is a limitation of using a market map?
Market mapping only allows for the analysis of two criteria
139
How can data analytics assist businesses in setting pricing strategies?
Businesses can use data analytics to analyze competitors' pricing strategies
140
Define business objectives.
Business objectives are specific
141
Why might a business want to be near competitors?
Being close to competitors can allow businesses to take advantage of shared customer bases.
142
How did Extinction Rebellion illustrate conflict between pressure groups and government?
In 2019
143
What is the role of numerical data in market research?
Numerical data can provide insights
144
What impact does technology have on business communication with customers?
Technology enables two-way communication with customers
145
Why are aims and objectives critical for businesses?
They align the efforts of employees towards a common vision and ensure that everyone works towards the same goals.
146
What does the nature of the business activity refer to?
It varies based on the requirements for space
147
What challenge did local communities face with the HS2 project?
Community residents opposed the HS2 project due to concerns about environmental damage
148
What is qualitative data in market research?
Qualitative data gathers explanations based on conversations
149
What is the purpose of a business plan?
A business plan outlines forecasts related to the business idea
150
How has the internet impacted business location decisions?
Businesses can now reach customers anywhere
151
What common financial objectives do start-ups often have?
Survival; Sales; Profit; Market share; Financial security
152
How has e-commerce influenced businesses?
E-commerce has expanded customer reach and sales
153
What elements typically comprise a business plan?
A business plan typically includes aims and objectives
154
What are some non-financial objectives for entrepreneurs?
Social entrepreneurship; Personal satisfaction; Challenge; Independence and control
155
What is the marketing mix?
The marketing mix (4Ps) includes product
156
What is the impact of social media on business marketing?
Social media has allowed businesses to build customer relationships
157
How does a well-written business plan assist in securing finance?
A well-written business plan helps lenders and investors understand the business's credibility and financial risks
158
List factors that influence business objectives.
Industry; Size; Culture; Ownership structure; Geographic location
159
How has digital communication transformed business operations?
Digital communication offers new channels for reaching customers
160
How do the components of the marketing mix work together?
They satisfy the needs of the target market while achieving the company's objectives.
161
Who are considered business stakeholders?
Business stakeholders are individuals or groups that affect or are affected by the actions of a business
162
Why is promotion important in marketing?
Promotion generates awareness
163
How do businesses in different industries typically differ in their objectives?
Different industries will have varying objectives; for example
164
What is a primary objective of shareholders?
The primary objective of shareholders is to maximize their returns on investment in the company.
165
How can the size of a business influence its aims and objectives?
Small businesses may focus on survival and sustainable growth
166
What does the product design mix entail?
It includes balancing function
167
Why do ownership structures affect business objectives?
Family-owned businesses may prioritize long-term stability and legacy over short-term profitability.
168
Why is pricing significant for businesses?
Setting appropriate prices can maximize revenue and position the brand effectively in the market.
