Business Studies
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
, Business Studies
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
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
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
, Business Studies
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
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
