BUSINESS 32020 LATEST 2024 UPDATE QUESTIONS AND
CORRECT ANSWERS GRADE A+ BUSINESS STUDIES EXAM
PREPARATION 100%
Unlimited Liability
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
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
The amount of money that the Franchisee pays to the Franchisor to use its name
Shareholder
The owner of a company entitled to a share of the profits each year
Customer Needs
The wants and desires of the customer
Market Research
The process of gaining information about customers, competitors and market trends
through collecting primary and secondary data
Primary Research
The gathering of new information, which has not been collected before
Secondary Research
The collecting of information that has already been gathered by someone else and that
already exists
Quantitative Data
Data which can be expressed as numbers and can be statistically analysed
Qualitative Data
Information about opinions, judgements and attitudes
Market Segmentation
a part of the market that contains a group of buyers with similar buying habits
Business
an organisation that provides goods or services
Market
where buyers (or customers) and sellers (businesses) meet to exchange goods and
services
Sole Trader
a business owned by only 1 person who has unlimited liability
Private limited company
A business owned by shareholders who have limited liability, but shares in the business
CAN NOT be SOLD on the stock market
Franchise
The right given by one business to another to sell goods or services using its name
Franchisee
, A business that agrees to manufacture, distribute or provide a branded product under
license by a franchisor
Franchisor
The business that gives franchisees the right to sell its products in return for a fixed sum
of money or royalty pay
Added Value
The increased worth that a business creates for a product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map
A diagram that shows the range of possible positions for 2 features of a product. E.g
Low to high price and low to high quality
Enterprise
A willingness by an individual or business to take risks, show initiative and undertake
new ventures
Entrepreneur
A person who owns and runs their own business and takes risks
Mindmap
A diagram that is used to record words and ideas connected to a central word
Creative Thinking
Creating an idea that has not been done before (new and unique) and developing a
competitive advantage as a result
Competitive Advantage
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
A technique of thinking where participants are encouraged to think of as many ideas as
possible about an issue or problem
Lateral Thinking
Thinking differently to try and find new and unexpected ideas, such as by using DE
BONO'S SIX Thinking Hats
Invention
The discovery of new processes and potential new products, typically after a period of
research
Innovation
The process of transforming inventions into products that can be sold to consumers
Patent
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
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
CORRECT ANSWERS GRADE A+ BUSINESS STUDIES EXAM
PREPARATION 100%
Unlimited Liability
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
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
The amount of money that the Franchisee pays to the Franchisor to use its name
Shareholder
The owner of a company entitled to a share of the profits each year
Customer Needs
The wants and desires of the customer
Market Research
The process of gaining information about customers, competitors and market trends
through collecting primary and secondary data
Primary Research
The gathering of new information, which has not been collected before
Secondary Research
The collecting of information that has already been gathered by someone else and that
already exists
Quantitative Data
Data which can be expressed as numbers and can be statistically analysed
Qualitative Data
Information about opinions, judgements and attitudes
Market Segmentation
a part of the market that contains a group of buyers with similar buying habits
Business
an organisation that provides goods or services
Market
where buyers (or customers) and sellers (businesses) meet to exchange goods and
services
Sole Trader
a business owned by only 1 person who has unlimited liability
Private limited company
A business owned by shareholders who have limited liability, but shares in the business
CAN NOT be SOLD on the stock market
Franchise
The right given by one business to another to sell goods or services using its name
Franchisee
, A business that agrees to manufacture, distribute or provide a branded product under
license by a franchisor
Franchisor
The business that gives franchisees the right to sell its products in return for a fixed sum
of money or royalty pay
Added Value
The increased worth that a business creates for a product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map
A diagram that shows the range of possible positions for 2 features of a product. E.g
Low to high price and low to high quality
Enterprise
A willingness by an individual or business to take risks, show initiative and undertake
new ventures
Entrepreneur
A person who owns and runs their own business and takes risks
Mindmap
A diagram that is used to record words and ideas connected to a central word
Creative Thinking
Creating an idea that has not been done before (new and unique) and developing a
competitive advantage as a result
Competitive Advantage
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
A technique of thinking where participants are encouraged to think of as many ideas as
possible about an issue or problem
Lateral Thinking
Thinking differently to try and find new and unexpected ideas, such as by using DE
BONO'S SIX Thinking Hats
Invention
The discovery of new processes and potential new products, typically after a period of
research
Innovation
The process of transforming inventions into products that can be sold to consumers
Patent
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
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
