National 5 Business Management Questions and Answers ( Graded A+)

National 5 Business Management Questions and Answers ( Graded A+) Business - ANS- An organisation that provides goods and services Needs - ANS- Basic requirements for survival -- the goods and services a person must have (food, water, etc) Wants - ANS- Goods that are purchased to add comfort or pleasure to life Durable Good - ANS- Items with lasting value, the purchase of which is considered a form of savings Non-Durable Good - ANS- goods that last a short period of time, such as food, light bulbs, and sneakers Service - ANS- intangible things of value (haircuts, maid service, laundry, education, etc.) Land - ANS- Any natural resource provided by nature and used in the production process Labour - ANS- productive work (especially physical work done for wages) Capital - ANS- Man made resources used to make a product Enterprise - ANS- Combining the Factors of Production Factors of Production - ANS- Land, Labour, Capital and Enterprise Added Value - ANS- The increase in worth of a product or service as a result of a particular activity. Primary Sector - ANS- The part of the economy that produces raw materials; examples include agriculture, fishing, mining, and forestry. Secondary Sector - ANS- The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials. Tertiary Sector - ANS- the part of the economy that involves services rather than goods Sectors of Industry - ANS- Primary, Secondary & Tertiary Sole Trader - ANS- a business owned by a single person Partnership - ANS- A business in which two or more persons combine their assets and skills Private Limited Company - ANS- A business organization owned by shareholders with limited liability but whose shares cannot be bought or sold to the general public. Public Limited Company - ANS- a business with limited liability whose shares are available to the general public to buy on the stock market Private Sector - ANS- Comprises businesses owned and controlled by individuals or groups of individuals Public Sector - ANS- Comprises organisations accountable to and controlled by central or local government (the state) Third Sector - ANS- The Not For Profit Sector Dividend - ANS- A payment from profits by a company's Board of Director's to shareholders. Unlimited Liability - ANS- The owner is personally and fully responsible for all losses and debts of the business Social Enterprise - ANS- A business that is set up to help society rather than to make a profit. Customer Satisfaction - ANS- the extent to which a product's perceived performance matches a buyer's expectations After Sales Service - ANS- providing support for a product post purchase Social Responsibility - ANS- An organization's aim to have a positive impact on society. PESTEC - ANS- Political, Economic, Social, Technological, Environmental, Competitive Recession - ANS- A slowdown in a nation's economy Unemployment - ANS- Measures the number of people who are able to work, but do not have a job during a period of time. Inflation - ANS- A rise in the general level of prices in an economy. Legislation - ANS- A law or set of laws made by a government Stakeholder - ANS- A person with a key interest in the success of a business Customer - ANS- People who buy the product/service Owner - ANS- Person who controls the company Manager - ANS- Person who makes decisions for the company Employees - ANS- People who work for the company Suppliers - ANS- Companies that provide material, human, financial, and informational resources to other companies Market - ANS- A place where buyers and sellers meet Market Segmentation - ANS- Dividing a market into groups of similar customers Marketing Mix - ANS- The 4 Ps Product - ANS- The item made by the business and sold to customers Price - ANS- How much you charge for your product Place - ANS- Where the product is sold Promotion - ANS- How customers are made aware of the product Prototype - ANS- A working model of the test product Product Life Cycle - ANS- Five stages that product goes through over its life: development, introduction, growth, maturity, and decline. Branding - ANS- A firm uses a name, phrase, design, symbols, to distinguish itself from competitors. Premium Pricing - ANS- Setting a high price for a quality product Value Pricing - ANS- A low cost pricing strategy Promotional Pricing - ANS- Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales