Cambridge Technicals: Unit 1 Business
Revision
Business Objectives - Answer Targets that a business aims to achieve in a set period of
time.
Profit Objectives - Answer Target to maximise financial returns, in the form of profit, in a
set period of time.
Revenue - Answer Money coming into the business from the sales of goods or services,
selling price x amount sold.
Profit - Answer Surplus money made by a business when revenue exceeds costs.
Non-profit Organisations - Answer Businesses with a motive other than profit, may be to
provide a social benefit or service to society or to support a cause.
Ordinary Share Capital - Answer Investment given to the business by shareholders in
return for a share of the business.
Share Price - Answer Refers to the value attached to each share bought and sold on
the stock exchange. These change in accordance to performance.
Demographic Factors - Answer Factors which influence populations .
Autocratic Leadership - Answer Individual control over all decisions and little input from
group members. Typically make choices based on their ideas and judgments and rarely
accept advice.
Democratic Leadership - Answer Members of the group take a more participative role in
the decision-making process. Everyone is given the opportunity to participate, ideas are
exchange freely, and discussion is encouraged.
Laissez-faire Leadership - Answer The laissez-faire leadership style is where all the
rights and power to make decisions is fully given to the worker.
Tannenbaun Schmidt Continuum - Answer Model of leadership that considers the level
of indepednence a worker has within a business. 7 levels of control from autocratic to
democratic.
Decision Trees - Answer Numerical data applied and the probaility of the outcomes is
estimated.
Stakeholder Mapping - Answer Tool which helps manage stakeholders effectively. Low
interest and power = minimal effort, high interest and power = key players, high interest
and low power= keep informed and low interest and high power = keep satisified.
, Cambridge Technicals: Unit 1 Business
Revision
Market Growth - Answer change in size of market / original size x 100
Market Mapping - Answer Process of positioning competition within a market but
plotting key variable which differenciate the products to see a gap in the market.
Stratified Sampling - Answer One selected from a specific sub-section of a population.
Quota Sampling - Answer Random sampling of a sub-section of the population which
represents the target market.
Confidence Intervals - Answer Known as a margin of error, the range between which
the actual result may be.
Extrapolation - Answer USe of past data to identify a trend in the future.
Digital Marketing - Answer Makes use of technology and comprimises social media.
Price Elasticity of Demand - Answer Measures responsiveness of demand to a change
in price. %change in demand / % change in price x 100
Income Elasticity of Demand - Answer Measures responsiveness of demand to changes
in income. %change in demand / %change in income x 100.
Price Inelastic - Answer When a product isn't very responsive to a change in price.
Price Elastic - Answer When a product is really responsive to a change in price.
Income Inelastic - Answer Change in income leads to a less than proportional change in
demand.
Income Elastic - Answer Change in income leads to a bigger proportional change in
demand.
Luxury Goods - Answer Items very sensetive to levels of income. They normally have a
positive income elasticity of more than +1.5 or -1.5.
Necessities - Answer Product essential and therefore customers continue to purchase
no matter if the price increases. Therefore is in-elastic.
Segmentation - Answer Process of dividing the market up into subsections or groups of
people with similar characteristics to fit a sub-section. (Behavioural, Geographic,
Income and Demographics)
Revision
Business Objectives - Answer Targets that a business aims to achieve in a set period of
time.
Profit Objectives - Answer Target to maximise financial returns, in the form of profit, in a
set period of time.
Revenue - Answer Money coming into the business from the sales of goods or services,
selling price x amount sold.
Profit - Answer Surplus money made by a business when revenue exceeds costs.
Non-profit Organisations - Answer Businesses with a motive other than profit, may be to
provide a social benefit or service to society or to support a cause.
Ordinary Share Capital - Answer Investment given to the business by shareholders in
return for a share of the business.
Share Price - Answer Refers to the value attached to each share bought and sold on
the stock exchange. These change in accordance to performance.
Demographic Factors - Answer Factors which influence populations .
Autocratic Leadership - Answer Individual control over all decisions and little input from
group members. Typically make choices based on their ideas and judgments and rarely
accept advice.
Democratic Leadership - Answer Members of the group take a more participative role in
the decision-making process. Everyone is given the opportunity to participate, ideas are
exchange freely, and discussion is encouraged.
Laissez-faire Leadership - Answer The laissez-faire leadership style is where all the
rights and power to make decisions is fully given to the worker.
Tannenbaun Schmidt Continuum - Answer Model of leadership that considers the level
of indepednence a worker has within a business. 7 levels of control from autocratic to
democratic.
Decision Trees - Answer Numerical data applied and the probaility of the outcomes is
estimated.
Stakeholder Mapping - Answer Tool which helps manage stakeholders effectively. Low
interest and power = minimal effort, high interest and power = key players, high interest
and low power= keep informed and low interest and high power = keep satisified.
, Cambridge Technicals: Unit 1 Business
Revision
Market Growth - Answer change in size of market / original size x 100
Market Mapping - Answer Process of positioning competition within a market but
plotting key variable which differenciate the products to see a gap in the market.
Stratified Sampling - Answer One selected from a specific sub-section of a population.
Quota Sampling - Answer Random sampling of a sub-section of the population which
represents the target market.
Confidence Intervals - Answer Known as a margin of error, the range between which
the actual result may be.
Extrapolation - Answer USe of past data to identify a trend in the future.
Digital Marketing - Answer Makes use of technology and comprimises social media.
Price Elasticity of Demand - Answer Measures responsiveness of demand to a change
in price. %change in demand / % change in price x 100
Income Elasticity of Demand - Answer Measures responsiveness of demand to changes
in income. %change in demand / %change in income x 100.
Price Inelastic - Answer When a product isn't very responsive to a change in price.
Price Elastic - Answer When a product is really responsive to a change in price.
Income Inelastic - Answer Change in income leads to a less than proportional change in
demand.
Income Elastic - Answer Change in income leads to a bigger proportional change in
demand.
Luxury Goods - Answer Items very sensetive to levels of income. They normally have a
positive income elasticity of more than +1.5 or -1.5.
Necessities - Answer Product essential and therefore customers continue to purchase
no matter if the price increases. Therefore is in-elastic.
Segmentation - Answer Process of dividing the market up into subsections or groups of
people with similar characteristics to fit a sub-section. (Behavioural, Geographic,
Income and Demographics)
