LA-A2 - Purpose and Structure of a Business - Practice

Front

What are the aims and objectives of a business?

Back

Aims and objectives are the goals a business wants to achieve, such as profitability, growth, and market share.

Front

What is a product/service in a business context?

Back

A product/service is what a business offers to its customers to fulfill their needs or solve their problems.

Front

What are the types of ownership in a business?

Back

Types of ownership include sole proprietorship, partnership, corporation, and limited liability company (LLC).

Front

Why might a business need to change its ownership?

Back

A business may need to change its ownership to access more capital, reduce risk, or bring in new expertise.

Front

What are the different structures of a business?

Back

Business structures can be flat, matrix, or hierarchical, each with its own way of organizing roles and responsibilities.

Front

What are the possible locations for a business?

Back

A business can be located locally, nationally, or internationally, depending on its market and operational needs.

Front

What is involved in the evaluation, justification, and synthesis of business ideas?

Back

This involves analyzing business ideas for feasibility, justifying their potential success, and combining them to create a cohesive business strategy.

Front

What is a business model?

Back

A business model outlines how a company creates, delivers, and captures value, including its revenue streams and cost structures.

Front

What is market segmentation?

Back

Market segmentation is the process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.

Front

What is the role of a business plan?

Back

A business plan serves as a roadmap for a business, detailing its goals, strategies, target market, and financial forecasts.