BTEC Level 3 Business Unit 7 – Complete Revision
& Exam Prep 2026
Business Plan - ANSWER ✔✨---A written document that comprises all areas of a business proposal
Entrepreneur - ANSWER ✔✨---A person who sets up a business taking a risk in hope to make a
profit
Franchise - ANSWER ✔✨---An authorised business arranged to operate as an agent for another
company's products or services
Diversification - ANSWER ✔✨---alternative products or services which differ from the traditional or
routine operations/products/services
Niche market - ANSWER ✔✨---Small group of customers for a specialised item
Microbusiness - ANSWER ✔✨---Small business employing up to 9 members of staff
Types of ownership of a business? - ANSWER ✔✨---Private, public, not-for-profit.
Note: privately owned businesses can vary from micro to macro business. For example, it could be a hair
salon, or a larger company such as Virgin Atlantic.
, Macro business - ANSWER ✔✨---large employer, employing over 250 members of staff
Capital investment - ANSWER ✔✨---Funds (money) paid into a business to further its development
to meet its goals
Merger - ANSWER ✔✨---when one or more organisations combine operations and financial
arrangements and change ownership
Flat structure of a business - ANSWER ✔✨---Few or no levels of middle management between staff
and executives,, promoting direct communication and faster decision-making.
Matrix structure of a business - ANSWER ✔✨---Complex structure that brings together teams f
people depending on their abilities to work on specific projects. Eg. google or Manchester United
Hierarchical structure of a business - ANSWER ✔✨---Hierarchy where authority is clear. One
person with overall responsibility and authority and everyone has a clear position in the company.
Cognitive process - ANSWER ✔✨---Acquiring and processing information mentally
Iterative process - ANSWER ✔✨---An iterative process is one where you come to the desired result
by meanswer of a repeated cycle of operations.
Synthesise - ANSWER ✔✨---To combine two or more components such as information or values
Sources for data collection - ANSWER ✔✨---Primary sources (first hand gathered information):
internal or external
Secondary sources (data or information that has been gathered before)
Security of information - ANSWER ✔✨---Information must be kept secure in accordance with the
nature and sensitivity of that information. It is a legal requirement to store information securely.
& Exam Prep 2026
Business Plan - ANSWER ✔✨---A written document that comprises all areas of a business proposal
Entrepreneur - ANSWER ✔✨---A person who sets up a business taking a risk in hope to make a
profit
Franchise - ANSWER ✔✨---An authorised business arranged to operate as an agent for another
company's products or services
Diversification - ANSWER ✔✨---alternative products or services which differ from the traditional or
routine operations/products/services
Niche market - ANSWER ✔✨---Small group of customers for a specialised item
Microbusiness - ANSWER ✔✨---Small business employing up to 9 members of staff
Types of ownership of a business? - ANSWER ✔✨---Private, public, not-for-profit.
Note: privately owned businesses can vary from micro to macro business. For example, it could be a hair
salon, or a larger company such as Virgin Atlantic.
, Macro business - ANSWER ✔✨---large employer, employing over 250 members of staff
Capital investment - ANSWER ✔✨---Funds (money) paid into a business to further its development
to meet its goals
Merger - ANSWER ✔✨---when one or more organisations combine operations and financial
arrangements and change ownership
Flat structure of a business - ANSWER ✔✨---Few or no levels of middle management between staff
and executives,, promoting direct communication and faster decision-making.
Matrix structure of a business - ANSWER ✔✨---Complex structure that brings together teams f
people depending on their abilities to work on specific projects. Eg. google or Manchester United
Hierarchical structure of a business - ANSWER ✔✨---Hierarchy where authority is clear. One
person with overall responsibility and authority and everyone has a clear position in the company.
Cognitive process - ANSWER ✔✨---Acquiring and processing information mentally
Iterative process - ANSWER ✔✨---An iterative process is one where you come to the desired result
by meanswer of a repeated cycle of operations.
Synthesise - ANSWER ✔✨---To combine two or more components such as information or values
Sources for data collection - ANSWER ✔✨---Primary sources (first hand gathered information):
internal or external
Secondary sources (data or information that has been gathered before)
Security of information - ANSWER ✔✨---Information must be kept secure in accordance with the
nature and sensitivity of that information. It is a legal requirement to store information securely.
