6 Questions
Venture capital is an internal source of finance.
False
A break-even analysis is used to determine the point at which revenue exceeds total fixed and variable costs.
False
The marketing mix includes the element of 'People' which refers to the sales team and customer service.
True
Primary market research involves analyzing existing data from internal and external sources.
False
Entrepreneurs are typically risk-averse and like to maintain the status quo.
False
Lifestyle entrepreneurs focus on rapid expansion and growth.
False
Study Notes
Finance
Sources of Finance:
- Internal sources:
- Retained profits
- Sale of assets
- External sources:
- Loans (short-term and long-term)
- Shares (equity and preference)
- Venture capital
- Grants
- Crowdfunding
Importance of Cash Flow:
- Cash flow is the lifeblood of a business
- Helps to pay bills and debts on time
- Enables business to take advantage of opportunities
- Can lead to insolvency if not managed properly
Break-Even Analysis:
- A calculation to determine the point at which revenue equals total fixed and variable costs
- Helps to determine profitability and inform business decisions
Marketing
Marketing Mix:
- Product: What the business sells
- Price: The amount charged for the product
- Promotion: Advertising, sales promotions, and public relations
- Place: Distribution and logistics
- People: Customer service and sales team
- Process: Systems and processes in place
- Physical Evidence: The atmosphere and environment in which the product is sold
Market Research:
- Primary research: Collecting original data through surveys, focus groups, and experiments
- Secondary research: Analyzing existing data from internal and external sources
- Importance of market research:
- Identifies customer needs and preferences
- Helps to identify market gaps and opportunities
- Informs business decisions and strategies
Entrepreneurship
Characteristics of Entrepreneurs:
- Risk-takers
- Innovative and creative
- Opportunity-seekers
- Flexible and adaptable
- Good communicators and leaders
- Resilient and persistent
Stages of Entrepreneurship:
- Idea generation
- Feasibility study
- Business planning
- Start-up
- Growth and development
Types of Entrepreneurs:
- Lifestyle entrepreneurs: Focus on maintaining a work-life balance
- Growth entrepreneurs: Focus on rapid expansion and growth
- Social entrepreneurs: Focus on creating social impact and value
Test your knowledge of business basics, including sources of finance, cash flow, marketing mix, and entrepreneurship. Learn key concepts and principles to succeed in business.
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