Business Studies Questions with 100% correct Answers 2024 final Exam

Business Studies Questions with 100% correct Answers 2024 final Exam Sole Trader The only owner of a business who has unlimited liability Private limited company A type of business ownership where the owners have limited liability but shares in the business CAN NOT be SOLD in the stock market Franchise The right given by one business to another to sell goods or services using its name Franchisee A business that agrees to manufacture, distribute or provide a branded product under license by a franchisor Franchisor The business that gives franchisees the right to sell its products in return for a fixed sum of money or royalty payment Unlimited Liability 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 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 The amount of money that the Franchisee pays to the Franchisor to use its name Shareholder The owner of a company entitled to a share of the profits each year Customer Needs The wants and desires of buyers of a product Market Research The processof gaining info. about customers, competitors and market trends through collecting primary and secondary data Primary Research The gathering of new info., which has not been gathered before and is expensive and time consuming Secondary Research The collecting of info. that has already been gathered, which is often quicker and cheaper to obtain Quantitative Data Data which can be expressed as numbers and can be statistically analysed Qualitative Data Info. about opinions, judgements and attitudes Market Segmentation Where the business can focus on a part of the market that contains a group of buyers with similar buying habits Added Value The increased worth that the business creates for a product. PRICE CHARGED - COST FROM SUPPLIERS Enterprise A willingness by a business to take risks, show initiatives and undertake new ventures Entrepreneur A person who owns and runs their own business and takes risks Creative Thinking Creating an idea that has not been done before and developing a competitive advantage as a result Competitive Advantage 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 Invention The discovery of new processes and potential new products, typically after a period of research Innovation The process of transforming inventions into products that can be sold to consumers Patent A right of ownership of an invention, design or process when it is registered with the goverment - Anyone copying this secured idea can be taken to court and sued - This must be registered with the Intelectual Property Office - This can last for 20 years from when they are first granted Copyright 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 -This can last longer than a patent e.g. authors have this for their lifetime and 70 years after they die Trademark The symbol, sign or feature of a product or business that can not be copied by other