Business STUDIES EXAM WITH
QUESTIONS AND ANSWERS.
Business - ANSWER an organisation that provides goods or services
Market - ANSWER where buyers (or customers) and sellers (businesses) meet to
exchange goods and services
Sole Trader - ANSWER a business owned by only 1 person who has unlimited
liability
Private limited company - ANSWER A business owned by shareholders who have
limited liability, but shares in the business CAN NOT be SOLD on the stock market
Franchise - ANSWER The right given by one business to another to sell goods or
services using its name
Franchisee - ANSWER A business that agrees to manufacture, distribute or provide
a branded product under license by a franchisor
Franchisor - ANSWER The business that gives franchisees the right to sell its
products in return for a fixed sum of money or royalty payment
Unlimited Liability - ANSWER A legal obligation on the owner of a business to settle
all debts of the business. In law, there is no distinction between what the business
and the owner owns and owes
Limited Liability - ANSWER When shareholders of a company are not personally
liable for debts of the company: the most they can lose is the value of their
investment in the shares of the company
Start up Fee - ANSWER The amount of money that the Franchisee pays to the
Franchisor to use its name
Shareholder - ANSWER The owner of a company entitled to a share of the profits
each year
Customer Needs - ANSWER The wants and desires of the customer
Market Research - ANSWER The process of gaining information about customers,
competitors and market trends through collecting primary and secondary data
Primary Research - ANSWER The gathering of new information, which has not
been collected before
Secondary Research - ANSWER The collecting of information that has already
been gathered by someone else and that already exists
Quantitative Data - ANSWER Data which can be expressed as numbers and can
be statistically analysed
Qualitative Data - ANSWER Information about opinions, judgements and attitudes
, Business STUDIES EXAM WITH
QUESTIONS AND ANSWERS.
Market Segmentation - ANSWER a part of the market that contains a group of
buyers with similar buying habits
Added Value - ANSWER The increased worth that a business creates for a
product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map - ANSWER A diagram that shows the range of possible positions for 2
features of a product. E.g Low to high price and low to high quality
Enterprise - ANSWER A willingness by an individual or business to take risks, show
initiative and undertake new ventures
Entrepreneur - ANSWER A person who owns and runs their own business and
takes risks
Mindmap - ANSWER A diagram that is used to record words and ideas connected
to a central word
Creative Thinking - ANSWER Creating an idea that has not been done before (new
and unique) and developing a competitive advantage as a result
Competitive Advantage - ANSWER An advantage a business has that enables it to
perform better than its rival like; better products, quality, customer service or creating
a totally unique product
Blue Sky Thinking - ANSWER A technique of thinking where participants are
encouraged to think of as many ideas as possible about an issue or problem
Lateral Thinking - ANSWER Thinking differently to try and find new and unexpected
ideas, such as by using DE BONO'S SIX Thinking Hats
Invention - ANSWER The discovery of new processes and potential new products,
typically after a period of research
Innovation - ANSWER The process of transforming inventions into products that
can be sold to consumers
Patent - ANSWER A right of ownership of an invention, design or process when it is
registered with the government
- Anyone copying this secured idea can be taken to court and sued
- This must be registered with the Intellectual Property Office
- This can last for 20 years from when they are first granted
Copyright - ANSWER Legal ownership of material such as books, music and films
which prevents these being copied by others
- If other copies are made they can be taken to court and sued
QUESTIONS AND ANSWERS.
Business - ANSWER an organisation that provides goods or services
Market - ANSWER where buyers (or customers) and sellers (businesses) meet to
exchange goods and services
Sole Trader - ANSWER a business owned by only 1 person who has unlimited
liability
Private limited company - ANSWER A business owned by shareholders who have
limited liability, but shares in the business CAN NOT be SOLD on the stock market
Franchise - ANSWER The right given by one business to another to sell goods or
services using its name
Franchisee - ANSWER A business that agrees to manufacture, distribute or provide
a branded product under license by a franchisor
Franchisor - ANSWER The business that gives franchisees the right to sell its
products in return for a fixed sum of money or royalty payment
Unlimited Liability - ANSWER A legal obligation on the owner of a business to settle
all debts of the business. In law, there is no distinction between what the business
and the owner owns and owes
Limited Liability - ANSWER When shareholders of a company are not personally
liable for debts of the company: the most they can lose is the value of their
investment in the shares of the company
Start up Fee - ANSWER The amount of money that the Franchisee pays to the
Franchisor to use its name
Shareholder - ANSWER The owner of a company entitled to a share of the profits
each year
Customer Needs - ANSWER The wants and desires of the customer
Market Research - ANSWER The process of gaining information about customers,
competitors and market trends through collecting primary and secondary data
Primary Research - ANSWER The gathering of new information, which has not
been collected before
Secondary Research - ANSWER The collecting of information that has already
been gathered by someone else and that already exists
Quantitative Data - ANSWER Data which can be expressed as numbers and can
be statistically analysed
Qualitative Data - ANSWER Information about opinions, judgements and attitudes
, Business STUDIES EXAM WITH
QUESTIONS AND ANSWERS.
Market Segmentation - ANSWER a part of the market that contains a group of
buyers with similar buying habits
Added Value - ANSWER The increased worth that a business creates for a
product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map - ANSWER A diagram that shows the range of possible positions for 2
features of a product. E.g Low to high price and low to high quality
Enterprise - ANSWER A willingness by an individual or business to take risks, show
initiative and undertake new ventures
Entrepreneur - ANSWER A person who owns and runs their own business and
takes risks
Mindmap - ANSWER A diagram that is used to record words and ideas connected
to a central word
Creative Thinking - ANSWER Creating an idea that has not been done before (new
and unique) and developing a competitive advantage as a result
Competitive Advantage - ANSWER An advantage a business has that enables it to
perform better than its rival like; better products, quality, customer service or creating
a totally unique product
Blue Sky Thinking - ANSWER A technique of thinking where participants are
encouraged to think of as many ideas as possible about an issue or problem
Lateral Thinking - ANSWER Thinking differently to try and find new and unexpected
ideas, such as by using DE BONO'S SIX Thinking Hats
Invention - ANSWER The discovery of new processes and potential new products,
typically after a period of research
Innovation - ANSWER The process of transforming inventions into products that
can be sold to consumers
Patent - ANSWER A right of ownership of an invention, design or process when it is
registered with the government
- Anyone copying this secured idea can be taken to court and sued
- This must be registered with the Intellectual Property Office
- This can last for 20 years from when they are first granted
Copyright - ANSWER Legal ownership of material such as books, music and films
which prevents these being copied by others
- If other copies are made they can be taken to court and sued
