Types of Business
What is the main goal of most businesses?
Profit
Flour, water and yeast going into a bakery are examples of what?
Inputs
Is competition an internal or an external factor?
External
What do we call a person who starts their own business and takes on the risk?
Entrepreneur
What is the name for the stage of the business cycle when the economy is performing at its strongest?
A boom
What is the name for a business owned and run by one person?
Sole trader
What do we call the finished goods or services a business sells to customers?
Outputs
Name two internal factors that affect how a business performs.
Any two of: staff, management, business decisions, resources, finances
Name two characteristics of a successful entrepreneur.
Any two of: creativity, risk taking, initiative, innovation, resilience, problem solving
During a recession, do businesses usually sell more or fewer products?
Fewer
How many owners can a partnership have?
2-20
Nike buys rubber and fabric, stitches them into shoes, then sells them. Name the input, the process and the output.
Input: rubber and fabric. Process: stitching or manufacturing. Output: shoes
What is the term for the advantage a business has that makes customers choose it over its competitors?
Competitive Advantage
How many prototypes did James Dyson build when designing his vacuum cleaner?
5,127
Name the four stages of the business cycle.
Growth, boom, slowdown, recession
Domino's, 7-Eleven and Anytime Fitness all operate using this business structure.
Franchise
Name the four stages of the recruitment and selection process in order.
Advertise the job, review applications, interview candidates, select the best candidate
McDonald's and KFC both sell fast food. Name two ways they compete with each other.
Any two of: price, product range, quality, customer service, location, advertising, speed
Name 3 ways an entrepreneur contributes to society beyond making money for themselves.
Creates jobs, provides goods and services, drives innovation, supports the local community, pays tax
Give 2 examples of a business acting in a socially responsible way and explain how it helps the business.
Any reasonable example such as paying fair wages, reducing plastic use, donating to charity, ethical sourcing. It improves reputation, attracts customers and builds trust
A company is a separate legal entity. What does this mean for the owners if the business fails?
They have limited liability, so they only lose what they invested and their personal assets are protected
Why would a business advertise a job externally instead of promoting someone already working there?
To bring in new skills or fresh ideas, a wider pool of candidates, or because no current staff have the skills needed
A business has rising sales but falling profit. Give one reason this could happen.
Costs are rising faster than sales, or it is discounting too heavily, or expenses such as wages, rent or supplies have increased
An entrepreneur and a small business owner both run their own business. What is the key difference?
An entrepreneur builds something new and takes on risk to grow or disrupt a market. A small business owner usually runs an existing, proven model.
A fast fashion brand is legally compliant everywhere it operates but is criticised for its overseas factories. Name the CSR issue and who the affected stakeholder is.
Ethical sourcing or worker conditions. The stakeholder is the workers in the supply chain, not the customer or shareholder