Business Studies IGCSE Keywords

Define economies of scale.

• A method of measuring time in economics

• The process of downsizing a business

• The concept of increasing prices to boost revenue

• Cost advantages achieved by a business due to an increase in production volume, leading to lower average costs.

Explain the concept of market segmentation.

• Market segmentation involves dividing a market into distinct groups based on various characteristics to better target marketing efforts.

• Market segmentation is not necessary for successful marketing strategies.

• Market segmentation involves targeting only one specific group of customers without considering other segments.

• Market segmentation is the process of combining all markets into one large group for marketing purposes.

What is meant by the term 'franchise'?

• A franchise is a type of fast food restaurant

• A franchise is a type of license that a party acquires to access a business's proprietary knowledge, processes, and trademarks to sell products or provide services under the business's name.

• A franchise is a type of clothing brand

• A franchise is a type of car rental service

Describe the role of a trade union in business.

• The role of a trade union in business is to represent the collective interests of workers, negotiate with management for better conditions, and provide a platform for workers to voice concerns.

• Trade unions aim to reduce worker benefits and increase management control

• Trade unions have no impact on workplace conditions

• Trade unions are only concerned with individual worker issues

Define the term 'stakeholder'.

• A type of video game controller

• A type of wooden stake used in construction

• A type of dessert made with steak

• A person, group, or organization that has an interest or concern in an organization.

Explain the difference between a merger and an acquisition.

• A merger is when two companies combine to form a new entity, while an acquisition is when one company buys another company.

• A merger is when two companies combine to form a new entity, while an acquisition is when two companies merge.

• A merger is when two companies buy each other, while an acquisition is when one company buys another company.

• A merger is when one company buys another company, while an acquisition is when two companies combine to form a new entity.

What is meant by the term 'opportunity cost'?

• The cost of an opportunity that is free

• The value of the next best alternative that is sacrificed

• The total cost of an opportunity

• The cost of an opportunity that is not valuable

Describe the concept of corporate social responsibility (CSR).

• CSR is a business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

• CSR is a concept that only benefits the company's shareholders.

• CSR is a marketing strategy to attract more customers.

• CSR is a way for companies to avoid paying taxes.

Define the term 'market share'.

• Market share is the number of products sold by a company in a market

• Market share is the total revenue generated by a company in a market

• Market share is the percentage of total sales in a market that is captured by a company or product.

• Market share is the number of customers a company has in a market

Explain the importance of branding in business.

• Branding helps create a unique identity, build trust, differentiate from competitors, and increase recognition and loyalty.

• Branding decreases customer loyalty

• Branding confuses customers

• Branding is irrelevant in business