business paper 2023

Flashcards of key vocabulary and concepts from a Business exam paper.

What is market mapping?

Identifying where there is a gap in the market

What is the impact of a decrease in interest rates?

Customers will borrow more money

What is an advantage of starting a business as a private limited company?

Limited liability, easier to raise finance

What is one way the internet may affect where a small business chooses to locate?

Lower overheads, access to wider market

What are examples of customer needs?

Choice and Quality

What are the roles of an entrepreneur?

Organising resources and taking risks

What is one way a small business could become more competitive?

To increase sales, improve reputation, customer loyalty

What is an advantage to a small business of meeting its legal obligations?

Avoid fines, maintain reputation

How could a small business add value?

Locate in a convenient place

What is the disadvantage to a small business of not paying its employees on time?

Damage to employee morale, difficulty recruiting staff

What is the advantage to a small business from using retained profit as a source of finance?

No interest to pay, cheap source of finance

How could financial information in a business plan help Lili Heating Ltd?

Helps forecast potential success, see if she would need an overdraft

What is the impact of non-financial aims on Amelia’s decision to start Lili Heating Ltd?

Personal satisfaction, wanting to be her own boss

What is the impact on Lili Heating Ltd of using the internet to collect secondary market research?

Quick to collect, cheaper than primary research

What element of the marketing mix, other than price, is there for Lili Heating Ltd?

Promotion, Place

Why would the government want Lili Heating Ltd to be successful?

Increased employment, increased tax revenue

What is an example of a risk for an investor in Ripple?

Loss of investment if wind farm fails

What is the benefit to customers from Ripple asking questions to identify its customer needs?

Customers get a service that meets their needs, increased customer satisfaction

What is price in Ripple's marketing mix?

The element of the marketing mix that determines revenue, helps create value for the product