revision question for commerce

18. what is a brand logo?

' A graphical mark used to identify a company, organization, product or brand.

8.A. what is a revenue statement?

A business earns income by selling a good or service to its customers. This is known as trading. To measure how successful a business is at trading, a financial report called an income statement, or statement of financial performance.

4.B. what are the disadvantage of being self-employed

Hard work and long hours Other 'bosses' — customers, suppliers, financiers Income may fluctuate and be uncertain Risk of failure Stress and worry High levels of responsibility Constantly solving problems Difficulty in selling the business

24. what do you understand by liability

Liabilities are the debts owed by a business to others.

3. who is an entrepreneur? what are the reason for being self-employed?

Most of us have seen something advertised and thought, 'that is just what I need'. Someone had the original idea for this product and went on to start, operate and assume the risk of a business venture — that someone is an entrepreneur. The motivating force behind them doing this is the hope of making a profit. The desire to be your own boss is a major reason for people starting their own business. They desire the freedom to choose when and where they work, with whom they work and whether to work from home. The great attraction is the belief that they will have more control over their life. Of course, they are also motivated by the financial rewards they believe can be gained from establishing a business.

21. what is a partnership?

collecting and analyzing information about customers and the business opportunities available

14. what are advantages and disadvantages of using a travel agent?

dealing with qualified staff who are experts in their field and will consequently be aware of problem areas (this could include visa or immunization requirements) gaining access to cheaper holiday packages than those available to the general public organising travel insurance at a reduced premium. The main disadvantage of dealing with travel agents instead of organizing your own holiday is that sometimes their costs are higher, as they take a commission on the fees charged.

13. what are the options for organizing a trip?

do all the organization themselves use an agent.

16. what are the different ways to advertise a product?

mass marketing — television, radio, newspapers and magazines direct marketing catalogues — catalogues mailed to individual households telemarketing — the use of the telephone to personally contact a customer e-marketing — the use of the internet to deliver advertising messages social media advertising — online advertising using social media such as Facebook and Twitter billboards — large signs in strategic locations.

5. what are the ways of people going into a business?

setting up a new business, which may involve establishing a franchise purchasing an existing business.

19. what is market segmentation?

when the total market is subdivided into groups of people who share one or more common characteristics.

23. what are the three sets of account that are recorded on a balance sheet

1. Value of assets. Assets are items of value owned by a business. 2. Value of liabilities. Liabilities are the debts owed by a business to others. 3. Owner's equity. Owner's equity represents the value of the business to the owner(s).

1. what is the aim of sales promotion?

1. attracting new customers by raising awareness of a particular product. 2. increasing brand loyalty by reinforcing the image of the product 3. encouraging existing customers to purchase more of the product. 4. encouraging new and existing customers to purchase new products.

7.the advantages and disadvantages of buying an existing business:

Advantages and disadvantages Buying an established business has a number of advantages: Sales to existing customers will generate instant income. A good business history increases the likelihood of business success. Stock has already been acquired and is ready for sale. Equipment is available for immediate use. Existing employees can provide valuable assistance. However, there may also be disadvantages: The existing image of the business may be difficult to change, especially if the business had a poor reputation. The success of the business may have been due to the previous owner's personality and contacts and this may be lost when the business is sold. It may be difficult to assess the value of goodwill with the likelihood of paying more than the business is worth.

6. what are the advantages and disadvantages of setting up a new business?

Advantages and disadvantages Starting a business from scratch has a number of advantages: The owner has the freedom to set up the business exactly as he or she wishes. The owner's objectives can be matched more closely to the business. The owner is able to determine the pace of growth and change. The owner has more flexibility to select the location, target market, range of products and level of customer service. There is no goodwill for which the owner has to pay.335 If funds are limited, it is possible to begin on a smaller scale. However, there are also disadvantages: There is a high risk and a measure of uncertainty. Without a previous business reputation, it may prove difficult to secure finance. Time is needed to develop a customer base, employ staff and develop lines of credit from suppliers. If the start-up period is slow, then profits may not be generated for some time. Potential customers may be more difficult to attract than initially expected or unforeseen competition may appear, especially if the level of planning was inadequate.

4.A. What are the advantage of being self-employed?

Be your own boss — independence Possibility of making a profit Challenge, reward and satisfaction Increase personal wealth Contribute to society Develop own creative ideas Overcome unemployment Achieve a better lifestyle Employ family members Possible tax advantages

25. what is debt financing and how is it different from equity financing? what are the advantages of each of these two?

Debt financing means borrowing money and not giving up ownership. Equity financing often means issuing additional shares of common stock to an investor. debt financing advantages: Maintaining ownership - unlike equity financing, debt financing gives you complete control over your business. As the business owner, you do not have to answer to investors. Equity financing advantages: Equity financing doesn't have to be repaid. Plus, you share the risks and liabilities of company ownership with the new investors. Since you don't have to make debt payments, you can use the cash flow generated to further grow the company or to diversify into other areas.

15. what are the things you should consider when you plan your trip?

Often, the language spoken in the countries you are visiting will be different from your own. Prior to leaving Australia, it is a good idea to learn some simple phrases in the language of the places you will visit. A bilingual dictionary is also a wise purchase. Travelling overseas requires a good deal of preparation to ensure your trip is safe and free of trouble. Your first step should be to ensure that your passport is in order. A passport is an official document granting permission to travel between countries. You must have a valid passport before leaving Australia, and it must be current for at least six months. You should also make certain that you have obtained any required visas. A visa is a stamp that is placed in your passport by a representative of the country you will be visiting. It usually states the length of time that you will be allowed to stay in the country. You must also pay a departure tax when leaving a country. In Australia, this is usually included in the cost of your airfare. In other countries, you may have to pay this at the airport before departing.

12 the list of various product promotion strategies

Personal selling Personal selling involves the activities of a sales representative directed at a customer in an attempt to make a sale. For example, a real estate agent uses personal selling when he or she shows a house and tries to persuade the potential home owner to purchase it. Because of its one-on-one nature, personal selling can be much more persuasive than advertising. In addition, the message can be modified to suit the individual customer's circumstances. Advertising Which current advertisement has most impressed you? What product is it advertising? Why did it impress you? You can probably answer these questions without too much thought. This is because you have been influenced by advertising. Everywhere you look, businesses are using advertising to influence our buying habits and choices.

10. the main means of transport and the advantages and disadvantages

Road: advantages Flexible — you can go when you want to Relatively inexpensive Most places are accessible by road Disadvantages Difficult to take a car outside Australia Road accidents are a problem Increasing traffic congestion Contributes to air pollution Stressful driving in strange cities with different road rules Costs — petrol, insurance, repairs, registration — are all increasingRail rails- advantages Relatively inexpensive Much safer than road transport Less polluting than road Less stressful than road Main stations are usually located in the centre of a city disadvantages Takes longer than air transport Subject to industrial disputes Level of service may be low Many smaller places do not have rail stationsAir advantages of air: It is very fast Level of service is high Fares have been greatly lowered in the last 20 years Only real option for international travel out of Australia for people with a time constraint Pollution and noise levels of latest aircraft are much lower than older aircraft aeroplane disadvantages: Problems of terrorism Frequent delays due to anti-terrorist security Some airlines have gone bankrupt, stranding passengers (e.g. Air Australia) Airports are frequently well away from the city centre Much more expensive than road or rail Subject to industrial disputes sea advantages: Very relaxed means of travel Usually the cost includes food and entertainment A safe means of travel ship disadvantages: Access limited to places with a port Very slow when compared to air travel Usually a floating resort rather than a means of transport

8.B the steps of revenue statement?

Step1: Record the revenue, which is the income earned by a business. Step2: Record the expenses, which are the costs incurred in running the business. Common expenses include wages and salaries, purchases of raw materials, payments for telephone, electricity and so on. Step3: Calculate the profit or loss. A gross profit/loss is the amount remaining when the cost of goods sold is deducted from revenue. A net profit/loss is the amount remaining when operating expenses are deducted from gross profit. The word 'net' means that all expenses have been deducted. To understand a revenue statement, we will examine Angelo's Eatery, an eat-in and takeaway café. Income_statement

9. what is a balance sheet?

The balance sheet or statement of financial position shows the financial position of a business at a particular time. It records three different sets of account

11.B what are the various factors which differentiate the products from other competitive products?

The difference could be as simple as changes to the packaging or labelling, or more complex, such as offering top quality service, greater convenience, better value for money or products that are environmentally friendly. These factors help in persuading consumers that the product is superior, therefore influencing them to buy it.

20. what are the methods for collecting information to do market research?

Who are our customers? What are they like? Why do they buy our product?

22. what is a sole trader?

a business owned and operated by one person

17. what is a niche market?

a very small segment of the total market. For example, look around any newsagent and you will see row upon row of magazines, each appealing to a specific niche market — male, female, young, old, urban, rural, outdoor lifestyle, indoor lifestyle and so on.

2. what is the strategies of sales promotions?

advertising, legal and ethical issues, targeting customers

11.a. what is product differentiation?

when products that are the same or similar are made to appear different and/or better than those of their competitors