BUSINESS STUDIES
Flashcard 1
Q: What is the primary purpose of a business?
A: To produce goods or provide services to meet customer needs and generate profit.
Flashcard 2
Q: What are goods in the context of business?
A: Tangible products that businesses produce and sell, such as clothes, electronics, or food.
Flashcard 3
Q: What are services in the context of business?
A: Intangible offerings that businesses provide, like hairdressing, banking, or education.
Flashcard 4
Q: What is an entrepreneur?
A: A person who sets up a business, taking on financial risks in the hope of profit.
Flashcard 5
Q: Define "profit."
A: Profit is the financial gain a business makes when its revenue exceeds its expenses.
Flashcard 6
Q: What are the three main sectors of industry?
A: Primary, Secondary, and Tertiary sectors.
Flashcard 7
Q: What is the Primary Sector?
A: The sector that involves the extraction of natural resources, such as farming, mining, and fishing.
Flashcard 8
Q: What is the Secondary Sector?
A: The sector that involves manufacturing and processing raw materials into finished goods.
Flashcard 9
Q: What is the Tertiary Sector?
A: The sector that provides services rather than goods, such as retail, healthcare, and education.
Flashcard 10
Q: What is a "business objective"?
A: A specific, measurable target a business aims to achieve, such as increasing profits or expanding market share.
Flashcard 11
Q: Name three common business objectives.
A: Profit maximization, customer satisfaction, and growth.
Flashcard 12
Q: What is a "stakeholder"?
A: Any person or group affected by a business's actions, including employees, customers, shareholders, and the community.
Flashcard 14
Q: Define "adding value."
A: Increasing the worth of a product or service by improving it or creating something unique, allowing it to be sold for more.
Flashcard 15
Q: What is the difference between a "need" and a "want"?
A: A need is essential for survival (like food, shelter), while a want is something desirable but not necessary (like luxury items).
Flashcard 16
Q: What is the "private sector"?
A: The part of the economy owned and controlled by private individuals and companies, aiming to make a profit.
Flashcard 17
Q: What is the "public sector"?
A: The part of the economy owned and operated by the government, often providing services like education and healthcare.
Flashcard 18
Q: What are "non-profit organizations"?
A: Organizations that aim to provide a service or benefit society, rather than make a profit, like charities.
Flashcard 19
Q: What is a "social enterprise"?
A: A business with social or environmental goals, reinvesting profits back into its mission instead of maximizing shareholder returns.
Flashcard 20
Q: Define "market research."
A: The process of gathering, analysing, and interpreting information about a market, including customer needs and preferences.
Flashcard 21
Q: What is "primary research"?
A: Collecting new, original data directly from sources, such as surveys, interviews, and observations.
Flashcard 22
Q: What is "secondary research"?
A: Analysing existing information collected by others, like reports, studies, and market analysis.
Flashcard 23
Q: Why do businesses conduct market research?
A: To understand customer needs, reduce risks, identify opportunities, and make informed decisions.
Flashcard 24
Q: What is a "target market"?
A: A specific group of consumers a business aims to reach with its products or services.
Flashcard 26
Q: What is "innovation"?
A: Creating new products or improving existing ones to meet customer needs and stay competitive.
Flashcard 28
Q: What is a "business plan"?
A: A document outlining a business’s objectives, strategies, market research, and financial forecasts.
Flashcard 29
Q: Why is a business plan important?
A: It helps secure funding, provides direction, and sets measurable goals for the business.
Flashcard 30
Q: What is "risk" in business?
A: The possibility of loss or failure in a business activity.
Flashcard 31
Q: What is "reward" in business?
A: The potential positive outcome, such as profit or business growth, that an entrepreneur seeks.
Flashcard 32
Q: What are "fixed costs"?
A: Costs that remain the same regardless of production levels, like rent, salaries, and insurance.
Flashcard 33
Q: What are "variable costs"?
A: Costs that change based on the level of production, like materials and direct labour.
Flashcard 34
Q: What is "revenue"?
A: The total income a business earns from sales before any costs are deducted.
Flashcard 37
Q: What is a "sole trader"?
A: A business owned and operated by one person, who has full control but unlimited liability.
Flashcard 38
Q: What is a "partnership"?
A: A business owned by two or more people who share responsibility, profit, and liability.
Flashcard 39
Q: What is a "private limited company" (Ltd)?
A: A company owned by shareholders, often family or friends, with limited liability.
Flashcard 40
Q: What is "limited liability"?
A: A legal status where the owners' personal assets are protected if the business fails.
Flashcard 41
Q: What is "unlimited liability"?
A: A situation where business owners are personally responsible for all business debts if it fails.
Flashcard 42
Q: Define "shareholder."
A: A person or entity that owns shares in a company and has a claim to a part of its profits.
Flashcard 43
Q: What is "customer satisfaction"?
A: A measure of how products or services meet or exceed customer expectations.
Flashcard 44
Q: What are "ethics" in business?
A: Moral principles that guide business decisions, emphasizing fairness, honesty, and responsibility.
Flashcard 45
Q: Define "sustainability" in business.
A: Operating in a way that considers long-term environmental, social, and economic impact.
Flashcard 46
Q: What is "competitive advantage"?
A: An attribute that allows a business to outperform its competitors, like lower prices or better quality.
Flashcard 47
Q: What is "market share"?
A: The percentage of total sales in a market held by one business.
Flashcard 48
Q: What is a "business objective" for a start-up?
A: Commonly, survival and establishing a customer base are key early objectives for start-ups.
Flashcard 49
Q: Why might a business want to expand?
A: To increase sales, reach new markets, and achieve economies of scale.
Flashcard 50
Q: What is "diversification"?
A: Expanding into new products or markets to spread risk and increase potential revenue