1. Business in the Real World Flashcards
What is a Service?
Service is an intangiable product (physically cannot touch) such as Bus Journey or Financial Service.
What is a customer?
A Customer is someone who buys a product from a business.
What is goods?
Goods are physical products such as Bike or car.
What is consumers?
Consumers is someone who borrows/uses a goods or supplies from a business.
What is an Entrepreneur?
An Entrepreneur is someone who takes risks to develop their business ideas.
Why do people want to become an entrepreneur?
People want to become an Entrepreneur because,
- Not satisfied with their job
- Their dream to setup a business
- Does not want to work for someone
- Want to become rich in which they know how to be successful.
- Have spotted a great business opportunity.
What is Social Enterprise?
Social Enterprise is a group of orgonisation. who are trying to raise money as a charity or helping society rather making a profit. This is known as a non-profit-orgonisation.
What is resources?
Resources are inputs that are used for goods/supplies within your/their business.
What is Interest?
Interest is where you get a financial reward for saving money/ getting cashback.
What are the 3 sectors?
Primary Sector= Dig
Secondary Sector= make
Tertiary Sector= sell
What are the 4 functions of a Business?
The 4 functions of a Business are:
- Marketing
- Human resources
- Finance
- Operations
What are the charecteristics to become an Entrepreneur?
- Hard work and determined
- Organised
- Innovative
- Risk takers
What is a sole trader?
A Sole Trader is someone who setups his/her business by his/her own.
What is Profit?
revenue - total costs is the definition of Profit.
What is unlimited liability?
Unlimited Liability is the owner is a risk if their is any problems, there is no limit to the amount of money that the owners have to pay out.
What is Partnership?
Partnership is 2 or more people who joins a business to make profit.
What is a Deed of Partnership?
A Deed of Partnership is 2 or more people who have decided to leave the company, in which the profit will be divided equally.
What is a stakeholder?
A Stakeholder are organisations being affected or affects a business.
What is a shareholder?
A Shareholder is someone/ a person who owns half of the company.
What is a Company?
A Company is a business that haves it own legal items where it can be sued, or sue someone else or even own money.
What are the Advantages of a Company?
- Limited Liablility
2. Continue business even if the owner is dead.
What are the Disadvantages of a company?
- Closes buyers and sellers
- Have to register
- Accounts being checked several times
What are the 2 types of companies are there?
Public Limited Company and a Private Limited Company (ltd)
What is a Public Limited Company?
A Public Limited Company is one that is being allowed to buy and sell shares over the Stock Exchange.
What is a Private Limited Company (ltd)?
An ltd, is an private organisation which is owned by shareholders in which it cannot be allowed on the Stock Exchange.
What is aim?
Aim is a general goal for your business.
What is an objective?
An Objective is a target that is setup for a business to achieve.
What is a Stakeholder?
A Stakeholder is an organisation that affects or is affected by an business.
What are the groups of a Stakeholder?
- Shareholders
- Community
- Customers
- Suppliers
- The Government
- Supplies
Why is Business Location important
Business Location is important due to Sales, Costs and the Image of a business.
What does factors of a Business affects by its location?
- Costs
- Avaliabilty of Resources
- Transport Services
- Technology
- Market
- Type of Business
What is a Business Plan?
A Business Plan contained by a document in which the business hopes to achieve in the future.
What do they update every year within the business?
The business plan shall be updated per year.
Why should the Business Plan be updated every year?
Because, in the case of an Pandemic or something that is changed towards the economy/society in the country.
What is e-commerce?
e-commerce is an act of buying or selling a product using an electronic device such as to the internet.
