Business Basics
What is the primary goal of a business?
To make a profit.
What are the 4Ps of marketing?
Product, Price, Place, Promotion.
What is revenue?
The total income from selling goods or services.
What is an entrepreneur?
Someone who starts and runs their own business.
Who is the customer for a brand like Apple?
People who buy Apple products, such as iPhones or MacBooks.
What do we call the people who work for a business like Tesco?
Employees or staff.
What is market segmentation? Give an example using McDonald’s.
Dividing customers into groups — e.g., McDonald’s targets kids with Happy Meals and adults with coffee deals.
What is the formula for profit?
Profit = Revenue - Costs.
What risk did Elon Musk face when starting SpaceX?
He risked losing money and failure if rockets didn’t work.
In 2024, why did Shein face criticism from UK MPs? (NEWS)
Over concerns about unethical labour practices and fast fashion’s environmental impact.
What is a sole trader?
A business owned and run by one person.
What’s the difference between primary and secondary research?
Primary = new data collected; Secondary = existing data used.
Give one example of a fixed cost for a business like Primark.
Rent or staff salaries.
What is one reward of starting your own business?
Being your own boss, making a profit, or personal pride
Why has Disney+ increased its subscription prices in recent years? (NEWS)
To boost profits as production costs and competition rise.
Name two types of business ownership. Which type is Amazon?
Sole trader, partnership, Ltd, PLC. Amazon is a public limited company (PLC).
Name one method of promotion used by Nike
Sponsorships (e.g., athletes), social media ads, TV adverts.
What is break-even? Use a small café as an example
When the café’s total revenue equals total costs — no profit or loss.
Why would a start-up like Gymshark need a business plan?
To plan goals, forecast finances, and attract investors.
In 2025, what major fast-food brand began testing AI in its drive-thru service?
McDonald's — to speed up ordering and reduce staff workload.
What is a stakeholder? Use Starbucks as an example.
Anyone affected by the business — e.g., Starbucks employees, customers, shareholders.
Why does Coca-Cola invest heavily in branding?
To stay recognisable, build loyalty, and stand out from competitors.
What does cash flow show, and why is it important for a bakery?
It shows money in and out. Poor cash flow could stop a bakery from buying ingredients or paying staff.
Name a famous entrepreneur and their company.
Jeff Bezos – Amazon, or Oprah Winfrey – OWN Network.
How is H&M trying to become more sustainable in its operations?
By using recycled materials and offering clothing recycling in stores.