Unit 3.1-3
A term used for an entrepreneur’s own savings, sometimes referred to as owner's capital
What is Personal funds?
An organization that operates in two or more countries, usually has a head office based in its home country.
What is MNC?
This “P” refers to the features, design, quality and branding of a good or service offered to customers.
What is Product?
Internal factors that can harm a business.
What are weaknesses?
The very first thing subtracted from sales revenue
What is the cost of sales?
The money raised from selling shares in a limited liability company?
What is Share Capital?
These are cost-saving benefits due to operating on a large scale, which reduces the firm’s average cost of production
What is economics of scale?
This concept refers to how a business makes its product stand out from competitors by emphasizing distinct features or benefits.
What is Product differentiation?
A company launching an existing product in a new country is using this growth strategy.
What is market development?
These are the day-to-day expenses required to run a business, such as rent, wages, and utilities.
What are operating expenses?
Selling price per unit - Variable cost per unit
What is contribution per unit?
This is the conscientious consideration of ethical and environmental practice related to business activity
What is CSR?
A company chooses to sell its products online, through retailers, and via direct delivery this refers to which “P”
What is Place?
This section outlines how a company will attract and keep customers.
What is the marketing plan?
The formula for cost of sales
What is opening stock + purchases - closing stock
A short-term flexible form of borrowing is commonly used when businesses have minor cash flow problems
What is overdraft?
This type of organization is owned and run by one individual, who receives all profits but also has unlimited liability.
What is a sole trader?
This pricing strategy involves setting a low initial price to quickly gain market share, often used when entering a competitive market.
What is penetration pricing?
Circles in a decision tree represent these uncertain points.
What are chance nodes?
This item appears on a profit and loss statement and represents the reduction in value of non-current assets over time.
What is depreciation?
A disadvantage of microfinance providers
What is immortality, limited finance, and limited eligibility?
The legal difference between the owners of a company and the business itself.
What is incorporation?
A luxury hotel focuses on staff training, customer service interactions, efficient booking systems, and high-end decor to influence customer experience—these elements together represent which THREE “Ps”?
What are People, Processes, and Physical Evidence?
This is the riskiest strategy in Ansoff’s Matrix, involving new products and new markets.
What is diversification?
A business improves its net profit margin without changing revenue or cost of goods sold. This must have happened to these expenses.
What is operating expenses decreased?