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Flashcards in Paper 2 Missing Revision Cards Deck (17)
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1
Q

Factors that decide location

A

Customers
Staff
Support services
Costs

2
Q

How may a delivery-only takeaway locate itself?

A

A cheap location with good transport links

3
Q

What is risk?

A

The chance of loss or damage
The probability that something goes wrong leading to a loss
When a hoped-for outcome doesn’t happen

4
Q

Why a start up is risky?

A

Difficult to test a new idea without trading
Easy to be over-optimistic
Competitor response is often aggressive
Easy to underestimate the effort required to be successful

5
Q

Main reasons why start-ups fail

A

Insufficient customer demand
Poor execution of a good idea
External shocks

6
Q

Calculated risk

A

A risk that has been given thoughtful consideration and for which the potential costs and benefits have been weighted and considered

7
Q

E-commerce

A

The buying and selling of goods using an electronic network such as the internet

8
Q

E-commerce advantages

A

Limits geographical limitations
Cheaper property
Less employees
Higher capacity for selling

9
Q

E-commerce disadvantages

A

Have to employ people to transport
Could be a long way to sell
Consumers trust you less

10
Q

Advantages of personal selling

A

High consumer attention
Persuasive
Adaptable
Customised message

11
Q

Disadvantages of face to face selling

A

Expensive
Labour intensive
Can only reach a limited number

12
Q

What are stakeholders?

A

People with an interest in how a business does

13
Q

What are owners managers and workers interested in?

A

Owners- profit
Managers- salary
Workers- wages and keeping their jobs

14
Q

What are customers, suppliers and lenders interested in?

A

Customers- quality and price
Suppliers- keeping their products
Lenders- want all repaid in time

15
Q

What may the community be interested in?

A
Noise
Smell/pollution
Business
Disruption 
Employment
16
Q

Research and development

A

Develop new products for product differentiation
Increasing quality
Develop more effectiveness of producing
Increase profitability

17
Q

Steps in the R&D process

A
Idea generation
Screening of ideas
Development of ideas
Prototype and testing
Launch