buisness end of year exam revision

what are the 3 ways new buisness ideas come about?

1. changes in techkowledgey

2. changes in want consumers want/need

3. products and services become obsolute

How do new buisness ideas come about?

1. original ideas ( what you come up with)

2. adapting eisiting prouducts/serives/ideas

what are the impacts of taking risk within a buisness?

1. buisness failure

2. financial loss

3. lack of security

what’s the impact of reward within a buisness?

1. buisness success

2. profit

3. independence

what is the role of a buisness enterprise?

1. to produce goods and services

2. to meet customer wants/needs

3. to add value via: convinience, branding, quality, design and USP

what is the role of entrepenureship?

1. organise resources

2. make buisness decisions

3. take risks

what are customer needs?

1. price

2. quality

3. choice

4. convinience

what is the purpose of conducting market research?

1. to identify and understand customer wants/needs

2. to identify gaps in the market

3. to reduce risks

4. to inform buisness decisions

methods of primamry market research?

1. survey

2. questionaire

3. focus groups

4. observation

methods of secondary market research?

1. internet

2. market reports

3. gouverment reports

what is the difference between qualative and quantatvie data?

qualative data is all about opinions and quantative data is all about figures

what effect does social media have on secondary market research?

social media can have both a posotive and negative effect on secondary research. a negative of social media is that it can spread misinformation, affecting data accuracy. Conversely, a positive effect is that it provides a vast amount of real-time data and consumer insights.

what are the market segments?

1. location

2. demographics

3. lifestyle

4. income

5. age

what does market mapping allow a entrepenure to do?

market mapping allows a buisness or a entrepenure to spot gaps in the market

what is a buisnness aim and objective

1. a aim is a goal that a buisness wants to achieve

2. a objective is a step by step process of how a buisness is going to achieve that aim

what are the buisness financial aims?

1. surival

2. prophet

3. sales

4. market share

5. financial security

what is market share?

market share is how much of your sales takes up the overall sales of that whole sepcific market

non-financial aims of a buisness?

1. social objectives

2. personal satisfaction

3. challenge

4. inderpendence

5. control

calcualtions required to know

1. revenue

2. fixed and variable costs

3. total costs

4. propeht and loss

5. intrest

6. break even

7. margin of saftey

why is it important to a buisness to have supstansule ammounts of cash?

1. to pay supplier, overheads and employees

2. to prevent buisness failure

remember how to fill out a cash flow graph

Main components:

1. cash inflows

2. cash outflows

3. net cash flow

4. opening, closing balances

what are the short term sources of fiance?

1. trade-credit

2. overdraft

what are the long term sources of finance?

1. personal savings

2. venture capital

3. share capital

4. loans

5. retained prophet

6. crowd funding

what buisness have unlimited liability

1. sole traders

2. partnerships

what buisness have limited liability

1. private limited company

2. public limited company

3. limited liability partnership

defenition of unlimited liability

Unlimited liability means that the owner(s) of a business are personally responsible for all of the company's debts and financial obligations. If the business cannot pay its debts, the owners' personal assets (such as their home, savings, or car) can be used to settle the debts. This type of liability typically applies to sole traders and general partnerships.

limited liability defention

Limited liability means that the owners or shareholders of a business are only responsible for the company's debts up to the amount they have invested in the business. Their personal assets (like their home or savings) are protected and cannot be used to pay off business debts. This applies to structures like private limited companies (Ltd) and public limited companies (PLC).