Distinguishing Businesses
Identify one for-profit business and one not-for-profit business
Example:
For-profit: Target
Not-for-profit: Red Cross
Identify the three elements of the triple bottom line
Social, environmental, economic
Food, water, and shelter are examples of... AND
Designer shoes and gaming consoles are examples of...
Needs and wants
Identify the three business environments
Internal, external operating, external macro
In a SWOT Analysis, what do the letters S, W, O, and T stand for?
Strengths
Weaknesses
Opportunities
Threats
A business with 20 or fewer employees is a...
Small business
Identify one way that fast fashion like Shein and Temu is unethical
- Products delivered in incorrect sizes
- Poor quality products
- Allegations of slave labour and child labour
Goods that are frequently bought together are also called...
Complementary goods
Why do businesses prefer to have multiple suppliers instead of one
To avoid supply difficulties and reduce the risk of price rises by not depending on a single supplier
What is superannuation and why do people have it?
Money set aside by employers (bosses) for their employees' retirement, so they have savings when they stop working
Do not-for-profit businesses usually have personal, social, or financial objectives?
Social objectives
When a business chooses to pay fair wages in developing countries even though it raises costs, it is practicing...
Corporate social responsibility
The four elements of the marketing mix are product, price, promotion, and...
People!
Identify the main difference between the autocratic and Laissez-Faire management styles
Main difference is the level of control employees and managers have. Autocratic = more manager control and less employee control. Laissez-Faire = more employee control and less manager control.
What does the task word 'Explain' mean? And give an example of how it might be used in an exam-style question.
Explain means to give a detailed account including reasons or causes.
Example: Explain one of the three elements of the triple bottom line.
Identify one difference between for-profit and not-for-profit businesses
For-profit businesses focus on maximising profit, while not-for-profit businesses focus on achieving social objectives
Identify one way that fast fashion like Shein and Temu is ethical
They allow people to access goods that are unaffordable for most
Setting a price based on what customers are willing to pay is called...
Customer-based pricing
How can competition in the external operating environment actually benefit a business
Competition encourages efficiency, innovation, and better-quality products at lower prices
What is the difference between a strength and an opportunity?
Strength = Internal factor
Opportunity = External factor
What do all businesses in the primary activity sector have in common?
Extracting natural resources from the Earth
Explain one way that a business could be ethical
Example:
- Paying employees fairly
- Ensuring supply chains are free of slave/child labour
- Reducing carbon emissions
Dividing the market into groups with shared characteristics is known as...
Market segmentation
How can technology create new opportunities and new challenges for businesses?
Opportunities: Helps businesses reach more customers such as through social media
Challenges: Risk of hacking/scams
What is the difference between 'discuss' and 'evaluate'?
'Discuss' requires you to state both sides, while 'evaluate' requires you to state both sides, and your opinion about which side is most correct.