1.1 The Purpose And Nature Of Business. Flashcards
Definition of business
A business is an organisation designed to supply a product of service
Defintion of product
A product is anything that is capable of satisfying customer needs and it’s tangiable
Defintion of service
A service is an act that a business person carries out for you in exchange for money for example dental treatment,accountancy and agents.
Definition of land
Somewhere to produce the goods e.g farm.
Definition of labour
People to work in the business e.g farm worker
Definition of capital
Money to get the business started.
Defintion of enterprise
This is the drive or motivation from the owners to start a business.
Definition of primary sector
Extract raw materials from the earth by digging it up
Definition of secondary sector
Manufacturings like cars,toys.
Defintion of tertiary sector
When products are sold.
Sole trader
Your self employed run your own business as an individual and work for yourself.
Partnership
Legal arrangement that allows two or more people to share the responsibility for a business.
PlC
A company company that is legally allowed to offer it’s shares for sale to the public
LTD
Only allowing to invite people to buy your shares
Not for profit organisation
Doesn’t earn profit for it’s owners
Companies house
Any limited company or partnership business has to register with companies house.usually a fee to register.
Survival
Trying to stay open once you open your business
Make profit
Making more money that you spend on products than buying products
Stakeholders
A person with an interest or concern about something e.g local community,government,owners.
Domestic growth
How many shops a business have in a country
Internationally
How many shops you have you have around the world
Suppliers
To get the items to the customer quickly
Market research
Who will buy the product
Why will they buy it
How bug is the market
External pressures
Who are the competitors
How are they performing
How is the economy performing
Sales and marketing
What price shall we charge
How can we promote the product
How can we distribute the product
Production process
Where to setup
How to organise the factory
What production methods
Can we ensure quality
Human resources
How many employees
What skills/training are needed
How will we manage our employees.
Financial forecasts
Cash flow
Profit and less account
Balance sheet
Sales.
