Business Structures
Identify the business structure owned and run by one person.
Sole Trader
Identify the term used when a business has something that makes it more attractive than its competitors.
Competitve Advantage
Identify two characteristics often shown by successful entrepreneurs.
Risk-taking
Creativity
Resilience
Determination
Innovation
Identify the term used for the group of customers a business wants to sell to.
Target Market
Identify one technology businesses can use to reach customers online.
Social media, website, online store
Identify the term used when business owners are personally responsible for all business debts.
Unlimited liabililty.
Describe a partnership.
A partnership is a business owned and operated by two or more people who share profits, losses and responsibilities.
Identify two ways a business can gain a competitive advantage.
Lower prices
Better customer service
Higher quality products
Innovation
Identify a product or service that demonstrates innovation.
Answers will vary
Identify two characteristics businesses may use to identify a target market.
Age
Income
Location
Interests
Identify two ways technology can help businesses.
Reach more customers
Improve communication
Increase efficiency
Reduce costs
Track sales
Identify two benefits of operating as a public company.
Can raise large amounts of money by selling shares to the public and shareholders have limited liability.
Describe one advantage and one disadvantage of operating as a franchise.
Advantage: Uses a well-known brand and receives support.
Disadvantage: Must pay fees and follow rules set by the franchisor.
Describe what a gap in the market is.
A gap in the market is an unmet need or want that businesses can provide a product or service for.
Describe innovation.
Innovation is creating new ideas, products or methods, or improving existing ones.
Define demographic.
The term used for a group of people who share similar characteristics such as age, income or location.
Describe how businesses use social media.
Businesses use social media to advertise products, communicate with customers and promote their brand.
Describe why entrepreneurs are important to the economy.
Entrepreneurs create businesses, provide jobs, introduce new ideas and contribute to economic growth.
Compare and contrast limited and unlimited liability.
Both refer to how much responsibility a business owner has for business debts.
Describe how offering better customer service can help a business gain a competitive advantage.
Good customer service encourages customers to return and can make a business stand out from its competitors.
Explain why innovation is important for entrepreneurs.
Innovation helps entrepreneurs solve problems, meet customer needs and stand out from competitors. This can attract customers and improve business success.
Describe how a business might use demographic information when making business decisions.
A business can use information such as age, income and interests to design products, choose advertising and decide where to sell its products.
Describe how technology can make a business more efficient.
Technology can automate tasks, organise information and save time, allowing businesses to operate more effectively.
Describe why shareholders may choose to invest in a public company.
Shareholders may invest in a public company to earn a share of the company's profits and benefit if the value of their shares increases.
Explain why a public company can raise more money than a sole trader.
A public company can sell shares to many investors, allowing it to raise large amounts of money. A sole trader usually relies on their own savings or loans, which limits how much money they can access.
Explain how a business can gain a competitive advantage over its rivals.
A business can gain a competitive advantage by offering something customers value more than competitors, such as lower prices, better quality products or improved customer service. This encourages customers to choose that business instead of its rivals.
Explain why resilience is an important characteristic of an entrepreneur.
Businesses often face challenges and setbacks. Resilience helps entrepreneurs continue working towards their goals, learn from mistakes and overcome problems rather than giving up.
Explain how businesses use demographic characteristics to identify a target market.
Businesses use demographic characteristics such as age, income, location and interests to identify groups of customers who are most likely to purchase their products or services. This helps businesses make better decisions about product design, pricing and advertising.
Explain how using technology can help a business remain competitive.
Technology can help businesses reduce costs, improve products and services, communicate with customers and reach larger markets. This helps them keep up with or stay ahead of competitors.
Explain how identifying a gap in the market can lead to business success for an entrepreneur.
By identifying a gap in the market, an entrepreneur can provide a product or service that is not already available or does not fully meet customer needs. This can attract customers and create a competitive advantage.