Business Studies IEB Exam With All Questions And 100%
Verified Answers (A+) (ch 1-10) Latest Update
Business - ANSWER an organisation that provides goods or services
Market - ANSWER where buyers (or customers) and sellers (businesses) meet to
exchange goods and services
Sole Trader - ANSWER a business owned by only 1 person who has unlimited liability
Private limited company - ANSWER A business owned by shareholders who have limited
liability, but shares in the business CAN NOT be SOLD on the stock market
Franchise - ANSWER The right given by one business to another to sell goods or
services using its name
Franchisee - ANSWER A business that agrees to manufacture, distribute or provide a
branded product under license by a franchisor
Franchisor - ANSWER The business that gives franchisees the right to sell its products
in return for a fixed sum of money or royalty payment
Unlimited Liability - ANSWER A legal obligation on the owner of a business to settle all
debts of the business. In law, there is no distinction between what the business and the
owner owns and owes
Limited Liability - ANSWER When shareholders of a company are not personally liable
for debts of the company: the most they can lose is the value of their investment in the
shares of the company
,Start up Fee - ANSWER The amount of money that the Franchisee pays to the Franchisor
to use its name
Shareholder - ANSWER The owner of a company entitled to a share of the profits each
year
Customer Needs - ANSWER The wants and desires of the customer
Market Research - ANSWER The process of gaining information about customers,
competitors and market trends through collecting primary and secondary data
Primary Research - ANSWER The gathering of new information, which has not been
collected before
Secondary Research - ANSWER The gathering of information that someone else has
already collected and that is already available
Quantitative Data - ANSWER Data that can be represented numerically and that can be
statistically analyzed
Qualitative Data - ANSWER Information on opinions, judgments and attitudes
Market Segmentation - ANSWER a portion of the market that holds a group of buyers
with similar purchasing habits
Value Added - ANSWER The enhanced value which a business adds to a product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map - ANSWER A graph which indicates the possible scope for 2 product
,features. E.g Low to high price and low to high quality
Enterprise - ANSWER A readiness by an individual or business to accept risks, be
enterprising and embark on new ventures
Entrepreneur - ANSWER An individual owning, operating their own business and taking
all risks
Mindmap - ANSWER Diagram used to record words and ideas linked to a central word
Creative Thinking - ANSWER The development of an idea that has not been done before,
being unique, and the end result can be to develop a competitive advantage
Competitive Advantage - ANSWER An advantage a business has that enables it to
perform better than its rival like; better products, quality, customer service or creating a
totally unique product
Blue Sky Thinking - ANSWER A technique of thinking where participants are
encouraged to think of as many ideas as possible about an issue or problem
Lateral Thinking - ANSWER Thinking differently to try and find new and unexpected
ideas, such as by using DE BONO'S SIX Thinking Hats
Invention - ANSWER The discovery of new processes and potential new products,
typically after a period of research
Innovation - ANSWER The process of transforming inventions into products that can be
sold to consumers
Patent - ANSWER A right of ownership of an invention, design or process when it is
registered with the government
, - Anyone copying this secured idea can be taken to court and sued
- This must be registered with the Intellectual Property Office
- This can last for 20 years from when they are first granted
Copyright - ANSWER Legal ownership of material such as books, music and films which
prevents these being copied by others
- If other copies are made they can be taken to court and sued
-This can last longer than a patent e.g. authors have this for their lifetime and 70 years
after they die
Trademark - ANSWER The symbol, sign or feature of a product or business that can not
be copied by others
- Businesses have to make sure they do not use a name already in use
Calculated risk - ANSWER weighing up risks and rewards
Objectives - ANSWER the goals a business is trying to achieve
Financial Objectives - ANSWER targets expressed in monetary terms
- profit
-survival
Non financial objectives - ANSWER targets not expressed in monetary terms
- personal satisfaction
- challenge
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