Identify variable costs and an example

Changes directly with number of products made, e.g labour

rights of ownership of an invention, design or process,

What are 4 other enterprise skills?

Luck, leadership, planning, persuasion

What does conflict of interest mean?

Struggle to meet everyone's needs

When there are not sufficient funds, e.g cannot pay debts

State three enterprise skills

Risk taking, initiative, willingness for new adventure

State an internal sources of finance

Comes from trading within the business

What is a market map?

Identifies market segments and position where there are gaps

What is a cash flow forecast

Prediction of what will flow in/ out of a business

Difference between commodity and goods markets?

raw material(used in production)/ normal (everyday products)

Identify an example a question that entrepreneurs ask when coming up with a new business idea

How do I build up a customer base?

What is a boom in the business cycle?

Strong increase in economic activity

Tax on income earned by workers and sole traders

What is the difference between invention and innovation?

Research and brand new/ established and development

What are the 4 p's of the marketing mix?

Product, place, price, promotion

What are the factors which affect location when setting up a business?

Cost, competitors, customers, support services

What is a recession in economic activity?

When economic growth is negative (less than prior period)

Tax on the value of sales (Value added Tax)

What is a job description?

Explain the work to be done, job title, location

What is the business cycle?

Fluctuations in the level of economic activity over time

Amount that buyers are willing and able to purchase

What is the difference between a good and service?

physical and tangible/ non-physical and intangible

What is NIC (National Insurance Contributions)?

Tax on earnings of workers and sole traders (state benefits)

What is a market segment?

Share one or more common characteristic

Amount that sellers are willing and able to sell

What is a person specification?

Individual qualities required, e.g experience and skills

Identify 2 examples of secondary research

Telephone directories/ government statistics

What is the difference between skill and attitude?

ability to do something/ personally possess something

What is market research?

Collecting information; customers, competitors and trends

legal ownership of material to prevent being copied

List an example of a conflict of interests

Customers are unhappy with prices and sales fall further

Calculation for closing balance on a cash flow forecast

net cash flow + opening balance

What is a calculated risk?

Putting a numerical value/ probability on a risk

What is the difference between primary and secondary research?

Info that did not exist/ gathering existing information

Difference between limited and unlimited liability

Owner and business are separate/ Legally responsible

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Unit 1 GCSE Business Revision

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Getting to grips with the unit 1 content!

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Questions 70

Answers

1
Identify variable costs and an example
Does not vary with the output, e.g rent
Changes directly with number of products made, e.g labour
Does not vary with the output, e.g raw materials
Changes directly with number of products made, e.g rent
2
Identify 3 types of market segmentation
Age, name, DOB
lifestyle, income, DOB
Age, income, lifestyle
Income, location, pet type
3
Define patents
rights of ownership of an invention, design or process,
legal ownership of material to prevent being copied
the logo, symbol, sign, etc which cannot be copied
Inventing a new product
4
What are 4 other enterprise skills?
friendly, happy, kind, caring
Angry, motivated, determined, aggressive
Leadership, planning, luck, happy
Luck, leadership, planning, persuasion
5
State 2 external stakeholders
Competitors, workers
Managers, workers
Owner, local community
Customers, Suppliers
6
What does conflict of interest mean?
All stakeholders are angry
Struggle to meet everyone's needs
Stakeholders have no input
Meet everyone's needs
7
What is insolvency?
When a business has lots of cash
When a business knows what cash is inflowing and outflowing
When a business is not making profit
When there are not sufficient funds, e.g cannot pay debts
8
State three enterprise skills
Risk taking, initiative, willingness for new adventure
Happy, risk taker, generous
Driven, ambitious, kind
Kind, initiative, risk taker
9
State an internal sources of finance
Credit cards
Debt factoring
Comes from trading within the business
bank loans
10
What is a market map?
Identifies how to get your product to customers
Identifies market segments and position where there are gaps
Identifies where people want to buy things
It gives you directions
11
What is a cash flow forecast
Prediction of what will flow in/ out of a business
Statement from previous year cash flow
Exactly what money has gone out of the business
Exactly what money has come into the business
12
State the non-financial objective
Wealth
Personal satisfaction
Survival
Income
13
Difference between commodity and goods markets?
raw material(used in production)/ normal (everyday products)
buyers and sellers meet
Changes in raw material price
How much costs go up
14
Identify an example a question that entrepreneurs ask when coming up with a new business idea
What colour furniture should I get?
How do I build up a customer base?
Will my friend like my business?
Should I go on holiday when I set my business up?
15
What is a boom in the business cycle?
Slow down in economic activity
Rise slowly in economic activity
Strong increase in economic activity
An explosion
16
What is income tax?
Tax on income earned by workers and sole traders
Tax on sales
Tax paid by companies on their profits
Linked to state benefits
17
List 1 advantage and 1 disadvantages of being a franchisee
Networking, no personal invention
Liking the brand, being controlled
Extra control, making friends
Extra support, less risk
18
What is the difference between invention and innovation?
Big/ small
Research and brand new/ established and development
Risk taking/ easy
Research and brand new/ establishing a new product
19
What are the 4 p's of the marketing mix?
Product, people, price, promotion
Product, perception, place, price
Product, place, price, promotion
Price, people, promotion, place
20
What are the factors which affect location when setting up a business?
Accent, weather, customers
Cost, competitors, customers, support services
Politeness, wealth, support services
Size of town, weather, friendliness
21
What is a recession in economic activity?
Businesses have no money
Slow down in economic activity
Strong increase in economic activity
When economic growth is negative (less than prior period)
22
State an external source of finance
Variable costs
Customer transactions
Bank loan
Total revenue
23
What is VAT?
Paid by limited companies on the profits made
Tax on income
Tax on the value of sales (Value added Tax)
Tax on earnings
24
What is a job description?
A list of candidates drawn up
Interviewing candidates
Personal details
Explain the work to be done, job title, location
25
Identify a source of short term finance
Debt factoring
Share capital
Leasing
Personal savings
26
State 2 internal stakeholders
competitors, customers
Customers, local community
Owner, Government
Workers, Managers
27
What is the business cycle?
Fluctuations in the level of economic activity over time
Downs in economic activity over time
No changes to economic activity
Ups in economic activity over time
28
Calculation for net cash flow
net cash flow + opening balance
cash inflow + cash outflow
cash inflow - cash outflow
net cash flow - cash inflow
29
What is demand?
Amount that buyers are willing and able to purchase
markets for raw materials
Changes in raw material costs
amount that sellers are able to sell
30
What is the difference between a good and service?
A thing and something you do for someone
Physical/ tangible
non-physical/ intangible
physical and tangible/ non-physical and intangible
31
What is NIC (National Insurance Contributions)?
Linked to all products
Value added tax
Tax on earnings of workers and sole traders (state benefits)
Paid by companies on the profits
32
Identify 2 examples of primary research
Suverys/ Market reports
Internet sales/ local newspapers
Questionnaires/ Sales Data
Surveys/ Focus groups
33
List 2 advantages of being a franchisor
Rich and wealthy
People know who you are, and higher profit
Rapid expansion, higher profit
Higher profit and people will use/ visit
34
State the financial objective
Control
Helping others
Profit and income
Independence
35
What is a market segment?
Share one or more common characteristic
Share the same hair colour
How you develop products
Where you advertise products
36
What is supply?
amount buyers are willing to pay
the needs of customers
Specific market segments
Amount that sellers are willing and able to sell
37
What is a person specification?
Individual qualities required, e.g experience and skills
List of candidates
Application for a job
Job details
38
Identify 2 examples of secondary research
Telephone directories/ government statistics
Sales data/ Experiments
Telephone directories/ observations
Questionnaires/ Focus groups
39
What type of businesses pay corporation tax?
Workers
Limited companies
Sole traders
Large companies
40
What is the difference between skill and attitude?
Being able to do something/ thinking about something
physically doing something/ mentally doing something
Talking/ doing
ability to do something/ personally possess something
41
What is market research?
Only asking colleagues
Asking the business nearest to you
Asking family and friends
Collecting information; customers, competitors and trends
42
Define copyright
When you steal a business logo
the logo, symbol, sign, etc which cannot be copied
legal ownership of material to prevent being copied
When you copy someone
43
List an example of a conflict of interests
Customers are unhappy with prices and sales fall further
Do not know each other's surnames
Not friends with each other
They do not like the uniform
44
Calculation for closing balance on a cash flow forecast
cash inflow - cash outflow
net cash flow - opening balance
TR - TC
net cash flow + opening balance
45
What is a calculated risk?
Trying to reduce risk in the business
Putting a numerical value/ probability on a risk
Taking chances
Thinking about what to do for the business
46
What is the difference between primary and secondary research?
Collecting data that exists from a variety of sources
Collecting first-hand/ asking a manager only
Info that did not exist/ gathering existing information
Inside a building/ outside of a building
47
What are the two techniques for creative thinking?
make things smaller, silence
Creating lists/ mindmapping
Brainstorming, shouting
talking, combining things together
48
Difference between limited and unlimited liability
Owner and business are together/ legally responsible
Group of owners/ individual owner
Owner and business are separate/ Legally responsible
Own the business/ manage the business
49
Formulae for calculated revenue
TR - TC
Price - costs
Price x quantity
Price - quantity
50
Formulae for calculating profit/ Loss
TR - TC
FC + VC
Price x Quantity
TR X TC
51
What is another word for 'security' when money is borrowed?
Safe
Protected
Secure
Collateral
52
What are the 5 qualities shown by entrepreneurs? (PDTDS)
Happy, driven, ambitious, focused, organised
Planning, drive, thinking ahead, determination, seeking opps
Happiness, friendly, thinking ahead, determination
Planning, drive, happiness, anger, kind
53
What is lateral thinking?
Coming up with as many ideas as possible to solve a problem
Ideas through accepted techniques
Laying down to think
Thinking differently to get new, unexpected ideas
54
Identify a source of long term finance
Trade credit
Overdraft
Share capital
Credit cards
55
Will people spend more or less when interest rates increase?
More likely to spend and borrow money
invest money/ spend money
Less likely to save and will want to borrow money
Less likely to spend/ less likely to borrow money
56
What is blue skies thinking?
Looking at the sky for inspiration
Dreaming
Coming up with as many ideas as possible to solve a problem
Emotions and feelings
57
What is the difference between upsides and downsides?
Success/ failure
Things that go right/ things that go wrong
Risk/ chance
Being happy/ sad in your business
58
State three sources of added value
small, USP, age appropiate
USP, branding, convenience
Better design, higher quality, large
Better design, branding, red coloured
59
Define trademarks
Something marked on a product
The legal ownership of a business
The legal rights of a business
the logo, symbol, sign, etc which cannot be copied
60
What is a cash flow statement?
Document with the figures of what was received and paid out
Exactly what is paid out by a business
Prediction of what will flow in and out
Exactly what is received by a business
61
Identify the fixed costs and an example
Vary with output, e.g rent
Vary with output, e.g Business rates
Do not vary with output, e.g rent
Do not vary with output, e.g raw materials
62
What is the difference between on-the-job and off-the-job training?
Where you attend work/ day off
Experienced members of staff/ Outside experts
Your boss helps you/ a friend helps you
Experienced outsiders/ unexperienced outsiders
63
What is the difference between a fixed rate loan and a variable rate loan?
Change yearly/ Change monthly
Do not change/ Decrease in amount
Do not change/ change over life of the loan
Change monthly/ change daily
64
What is meant by the term added value?
Tax on top of a product
Increase worth that a business makes for a profit
Extra money charged for a product
Value added tax
65
Identify 3 different titles which could go on a market map
Name, age, address
Price, age, interests
DOB, quality, price
Price, quality, volume
66
What is deliberate creativity?
Thinking differently
Thinking about just one idea
Thinking without any focus
Intentional creation of new ideas through techniques
67
Will imports increase or decrease if the value of the pound appreciates?
Stay the same currently
Never change
Decrease
Increase
68
State the 3 elements of customer focus
Identifying needs, knowing the needs, forgetting the needs
Understanding needs, identify needs, anticipate needs
Identify needs, anticipating needs, meeting needs
Identifying needs, ignoring the needs, overlooking needs
69
What is the difference between qualitative and quantitative data?
Opinions, judgements, attitudes/ numbers, statistics
judgments/ attitudes
asking a colleague/ asking a friend
Numbers/ statistics
70
What can a business not discriminate against legally when hiring people?
Sex, eye colour, hair colour
Age, accent, foot size
Sex, age, gender
Age, height, food choices

Unit 1 GCSE Business Revision Flashcards | StudBud