1.1 - Explain the characteristics of different business markets A business market is the specific group, company or an industry focuses on trying to sell a services or product. A Consumer market is where products and services are sold to consumers; this is one of the largest markets with one of the highest number of transactions this is because the huge amount of number of consumers. Examples of Consumer markets are cafes and supermarkets Professional services markets are ones in which a professional service is sold to both business and individual customers these services include legal advice and financial advice. Service markets are one which a business sells its services directly to the consumers Examples include, Emergency alarm call monitoring …show more content…
Financial viability is the ability of the business to achieves its goal and fulfil its mission over a long term plan. Financial viability is the ability of an organisation to generate sufficient income to meet operational expensive (provide resources staffing, materials, equipment and meet financial obligations) and to generate sufficient funds for future growth. This enables the organisation the ability to provide a sufficient services or product and fulfil its long term goals and objectives. 3.2 - Explain the consequences of poor financial management. Poor financial management is bad financial planning, you need think carefully about capital expenditure and make sure that it money you spend will be justified by the income it generates, you need to work hard and plan to keep cost down, as over investment and lacking any reserve could see your business flounder Consequences can include running the business at a loss, having difficulties in paying their financial obligations, legal implications, insolvency and the business folding because of poor financial management. 3.3 - Explain different financial