Build a Business Unit 1

The four main business structures are

• Sole trader, Partnership, Business and Company.

• Sole trader, Partnership, Company and Trust.

• Sole trader, Partnership, Joint Venture and Co-op.

• Sole trader, Company, Incorporated Partnership and Business.

TRUE OR FALSE:

A business is an organised group or person engaged in commercial activities to produce and sell goods and/or provide services usually for the purpose of profit.

• True

• False

Markets are places or situations where _____ and sellers can make exchanges.

The cost of a product is...

• How much the product is worth

• However much someone is willing to pay for it

• How much money was spent producing it

• The gap between production cost and sale price

The value of a product is

• What a consumer thinks it is worth to them

• How much the seller thinks it is worth

• The amount the market sets

• The gap between production cost and sale price

Which of the following is not part of the promotion marketing mix?

• Advertising

• Direct marketing

• Competitive advantage

• Public relations

Which of the following are pricing strategies/methods

• Recommended retail price (RRP)

• Quote

• Percentage mark-up

• Discounting

Which order of steps would you take to start a business?

• 1. Market product

  2. Secure finance

  3. Come up with an idea

• 1. Secure finance

  2. Come up with an idea

  3. Market product

• 1. Come up with an idea

  2. Secure finance

  3. Market product

TRUE OR FALSE:

It is more expensive to start a business from scratch than to buy an established business.

• True

• False

In a competitive market, businesses need to have a C_____ A______ over their competitors in order to survive.