Podcast
Questions and Answers
Which business structure involves giving permission to sell a product or service under another business's name and trademark?
Which business structure involves giving permission to sell a product or service under another business's name and trademark?
- Private Limited Company
- Franchise (correct)
- Sole Trader
- Partnership
What is a key advantage of forming a partnership as a business structure?
What is a key advantage of forming a partnership as a business structure?
- Complete autonomy in decision-making
- Limited access to capital
- Increased opportunities and a range of skills among partners (correct)
- Unlimited liability for business debts
Which of the following is a disadvantage of choosing a franchise business model?
Which of the following is a disadvantage of choosing a franchise business model?
- No requirement to start up your own business
- Low risk of failure due to established business model
- Reduced access to raw materials
- Inability to set your own pricing strategies (correct)
What does 'proximity to labor' in business location refer to?
What does 'proximity to labor' in business location refer to?
Which of the following business structures typically involves 'unlimited liability'?
Which of the following business structures typically involves 'unlimited liability'?
A company is deciding whether to invest more in advertising on social media or newspapers. Under which element of the marketing mix does this decision fall?
A company is deciding whether to invest more in advertising on social media or newspapers. Under which element of the marketing mix does this decision fall?
What is the primary characteristic of a 'sole trader' business ownership?
What is the primary characteristic of a 'sole trader' business ownership?
Which element of the marketing mix relates to how goods and services reach customers?
Which element of the marketing mix relates to how goods and services reach customers?
For a business that relies heavily on raw materials for production, why is 'proximity to materials' a critical factor in choosing a location?
For a business that relies heavily on raw materials for production, why is 'proximity to materials' a critical factor in choosing a location?
What is one of the primary advantages of forming a Private Limited Company?
What is one of the primary advantages of forming a Private Limited Company?
A business owner is analyzing existing ideas to improve their product. Which aspect of 'product' within the marketing mix are they addressing?
A business owner is analyzing existing ideas to improve their product. Which aspect of 'product' within the marketing mix are they addressing?
What does the 'cluster concept' refer to when considering 'proximity to competition' in business location strategy?
What does the 'cluster concept' refer to when considering 'proximity to competition' in business location strategy?
Which of the following factors influences the 'price' element of the marketing mix?
Which of the following factors influences the 'price' element of the marketing mix?
What is a potential disadvantage of a Partnership?
What is a potential disadvantage of a Partnership?
Which of the following is NOT a typical means of promotion?
Which of the following is NOT a typical means of promotion?
What is a primary characteristic of a Private Limited Company?
What is a primary characteristic of a Private Limited Company?
What is a key advantage of starting your business as a franchise?
What is a key advantage of starting your business as a franchise?
Which of the following accurately describes 'Invention' in the context of product development?
Which of the following accurately describes 'Invention' in the context of product development?
Which business structure is the easiest to set up?
Which business structure is the easiest to set up?
What is the lower bound of number of owners in a partnership?
What is the lower bound of number of owners in a partnership?
Flashcards
Marketing Mix
Marketing Mix
The 'four Ps' - Product, Price, Place, and Promotion - used to influence and meet customer needs.
Product Innovation
Product Innovation
Adapting existing ideas or creating something entirely new.
Price
Price
The amount a product costs.
Place
Place
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Promotion
Promotion
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Unlimited Liability
Unlimited Liability
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Limited Liability
Limited Liability
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Sole Trader
Sole Trader
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Private Limited Company
Private Limited Company
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Franchise
Franchise
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Franchisor
Franchisor
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Franchisee
Franchisee
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Partnership
Partnership
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Proximity to Market
Proximity to Market
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Proximity to Labor
Proximity to Labor
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Proximity to Materials
Proximity to Materials
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Proximity to Competition
Proximity to Competition
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Study Notes
- These study notes cover options for startups and small businesses
Liability
- Unlimited liability means personal assets are not protected
- Limited liability means personal assets are protected
Ownership Types
- Include sole traders, partnerships, private limited companies, and franchises
Sole Trader
- Owned by one person
- Full control
- Easy setup
- No sharing profits
- Unlimited liability
- Sole responsibility
Partnership
- Consists of 2-20 owners in a business
- Advantages like increased opportunities, flexibility, shared responsibility, and a range of skills
- Disadvantages include potential conflict, shared liability, and loss of autonomy
Private Limited Company
- Privately held small business entity
- Advantages include less personal liability risks, flexibility on income, and reduced tax
- Disadvantages include limited access to capital, limited control, and shared ownership
Franchises
- Permission granted to sell a product or service under another business's name or trademark
- Franchisor is the person or business offering the franchise
- Franchisee is the person or business buying the franchise
- Advantages include not having to start your own business and having a low risk of failure
- Disadvantages include being expensive, not being able to set prices, and having little control
Marketing Mix
- It is a set of controllable elements or variables a company uses to influence and meet customer wants and needs
- Includes product, price, place, and promotion
Product
- Involves adapting existing ideas and inventing or creating something new
Price
- Amount a product costs
- Influenced by the cost of manufacturing, quality, brand image, and the balance of demand and supply
Place
- Refers to access to goods and how goods and services reach customers
Promotion
- Pertains to how to gain customers and persuade customers through advertising on social media, websites, and in newspapers
Business Location
- Considers proximity to the market
- Considers what type of goods are sold and how far away the business is from its customer base in terms of convenience
Business Location: Proximity to Labor
- Relates to the area of high unemployment, indicating a high number of applicants for jobs in the business
Business Location: Proximity to Materials
- The closer a business is to the raw materials needed for production
- The lower the cost of production will be
Business Location: Proximity to Competition
- Cluster concept draws customers to a certain area
- Customers looking for a product in one shop will try others if they can't find it
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