CCEA A-Level Business Studies AS 1 Introduction to Business overview quiz quiz

The difference between the cost of bought-in inputs and the price the customer pays

The total revenue a business earns before any costs are deducted

The amount of tax a business must pay on the goods it sells

The interest a business pays on the capital it has borrowed

Land, the natural resources used in production

Labour, the human effort used in production

Enterprise, the willingness to organise and take risks

Capital, the man-made resources used in production

The owner can never be asked to repay any of the business's debts

The owner's liability is capped at the amount invested in shares

The business is a separate legal entity from its owner

The owner is personally responsible for all the business's debts

A public limited company (plc)

A private limited company (Ltd)

An ordinary partnership

A sole trader

A supplier delivering raw materials to the factory

An employee who works for the business

A customer buying the finished product

A pressure group campaigning on the environment

Customers wanting low prices and the government wanting taxes paid

Suppliers wanting prompt payment and the community wanting jobs

Lenders wanting repayment and customers wanting good service

Shareholders wanting higher dividends and employees wanting higher wages

Motivational, so it inspires the workforce to perform

Measurable, so progress can be judged with figures

Market-led, so it reflects customer research

Maximising, so it always targets the highest profit

Survival, staying solvent in its uncertain early period

Profit maximisation to reward a large body of shareholders

Becoming the dominant global market leader within a year

Paying the highest possible dividends from the outset

Running a focus group with potential customers

Carrying out a face-to-face customer interview

Using published government population statistics

Conducting a new questionnaire in the high street

Setting the price of a product in line with competitors

Dividing a market into groups of customers with similar characteristics

Distributing a product through wholesalers and retailers

Building quality into every stage of the production process

Penetration pricing to win market share quickly

Cost-plus pricing by adding a fixed margin

Psychological pricing such as charging 9.99

Price skimming, lowered as competition appears

A cash cow, generating steady cash to fund others

A star, needing investment to maintain its lead

A question mark, with low share in a growing market

A dog, with low share in a low-growth market

Flow production, continuous mass output

Job production, one bespoke item at a time

Batch production, groups of identical items

Lean production, eliminating all waste

It greatly increases the cost of storing large stocks

It forces the firm to buy in very large, wasteful quantities

Any disruption to supply can halt production because there is no buffer

It makes the firm hold far too much obsolete stock

It inspects only the finished goods at the very end of production

It applies solely to service businesses, not manufacturers

It builds quality into every stage to prevent faults occurring

It removes the need for any agreed quality standards