Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A2 Business Specification Cards > 1 - Introduction to business > Flashcards

1 - Introduction to business Flashcards

1
Q

What is an ‘enterprise’?

A

a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is an ‘entrepreneur’?

A

a risk taker who sets up a business (not the same as being self employed)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Characteristics of an entrepreneur?

A
  • energetic and enthusiastic
  • comfortable with risk
  • has self belief and confidence
  • leadership skills
  • drive and determination
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 4 factors of production?

A
  • land
  • labour
  • capital
  • enterprise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Land?

A

natural resources from the land itself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Labour?

A

employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Capital?

A

technology and machinery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Enterprise?

A

bright new ideas and the person who organises the factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Factors of production

A

inputs used in the production itself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Added value?

A

what a business achieves by ensuring that the price of a good is in excess of the cost of inputs
leads to increased profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the 4 functions within the business

A
  • accounting and finance
  • operations management and production
  • marketing
  • human resource management
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 3 business sectors?

A

Primary - extracting; farming, mining, fishing
Secondary - manufacturing; building, factory work
Tertiary - services; retail, banking, teaching

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How much does the tertiary sector contribute to the UK?

A

80%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How much does the secondary sector contribute? and why has this declined?

A

14% - due to deindustrialisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How much does the primary sector contribute?

A

6%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What businesses make up the private sector?

A

soletrader
partnership
companies; private and public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What businesses make up the public sector?

A

local government owned
central government owned
these provide a service, not there to make profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the third sector?

A

charities, community groups etc

motivated by the desire to achieve social goals - any profits are reinvested in order to improve services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Private sector vs Public sector?

A

businesses owned and run by private individuals vs businesses owned and run by central or local government to provide service, not to make profit

20
Q

Sole trader

A

owns and runs their own business

21
Q

advantages of a sole trader

A
  • keep all profits
  • financial state is private
  • you are the boss
22
Q

disadvantages of a sole trader

A
  • fully responsible for all debts (unlimited liability)
  • can easily be overworked
  • hard to grow and often businesses don’t have the money to invest in expansion
23
Q

Partnership

A

two or more people own and run a business

24
Q

advantages of a partnership

A
  • easy to establish
  • losses and wins are shared
  • more skills
25
Q

disadvantages of a partnership

A
  • unlimited liability

- decision making can be slower and disagreements may arise

26
Q

What are limited liability partnerships? LLPs

A

combine features of partnerships with limited companies - owners therefore have limited liability and are called members rather than partners - accounts are however, viewed publicly

27
Q

Private limited company vs Public limited companies

A

Private: often a family business, shares are sold to family and friends only
Public: large business who sells shares on the stock exchange

28
Q

What is a cooperative?

A

a business owned and run by its members (employees and customers) - profits are shared between these people

29
Q

advantages of a franchise (in the eyes of the franchiser)

A
  • no cost of expansion

- under their control

30
Q

advantages of a franchise (in the eyes of the franchisee)

A
  • tried and tested brand names, no risk/ greater opportunity for success
  • specialist advice and training provided
31
Q

disadvantages of a franchise (in the eyes of the franchiser)

A
  • control issues and if things go wrong then bad publicity may result, for the whole brand
  • possibility of conflict
32
Q

disadvantages of a franchise (in the eyes of the franchisee)

A
  • continuing royalty payments (percentage of profits)

- less/no control over what is sold and at what prices

33
Q

advantages of a cooperative

A
  • legally straight forward
  • all work towards common goals
  • limited liability for members
34
Q

disadvantages of a cooperative?

A
  • weak management

- slow decision making

35
Q

When deciding on a businesses size, what two main factors are accounted for? (EU standardised way of deciding a businesses size)

A

number of employees and turnover/balance sheet value

36
Q

other than number of employees and turnover.. what other factors are taking into account when deciding a businesses size?

A

capital employed (total of the businesses assets)
number of shops/offices etc
stock market value

37
Q

how is share market value calculated?

A

current share price x the number of shares issued

38
Q

What factors can effect the size of a business?

A
  • market size
  • nature of the product
  • personal preference
  • ability to expand
39
Q

a business may want to grow for what type of reasons?

A
  • entrepreneur wants a greater challenge
  • owners want a higher return on their investment
  • a bigger business, better adapted to fight any economic decline
40
Q

Organic growth?

A

growth achieved through increasing sales by selling more to existing customers and finding new customers

41
Q

Mergers and Acquisitions?

A

two companies join together to form a bigger company

42
Q

Joint ventures?

A

a formal business arrangement in which two businesses agree to work together on a particular project. both invest time and money into it.

43
Q

Strategic allience?

A

allience means ‘cooperation’ - similar to a joint venture but less involved
an agreement between two or more parties to pursue a set of agreed upon objectives, while remaining independent organisations. this occurs when two or more organisations join together to pursue mutual benefits.

44
Q

limited company advantages?

A

-

45
Q

limited company advantages?

A
  • access to larger amounts of capital through the ability to issue shares
  • limited liability.. and for all shareholders, which encourages people to invest
  • continuity - a company is a separate legal entity and so does not come to an end when the original owners die
46
Q

limited company disadvantages?

A
  • setting up a company can be very expensive
  • company accounts are not private so its difficult to keep financial accounts out of the public eye.
  • more vulnerable to take over

A2 Business Specification Cards (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions