1.1 The Purpose And Nature Of Business. Flashcards

1
Q

Definition of business

A

A business is an organisation designed to supply a product of service

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2
Q

Defintion of product

A

A product is anything that is capable of satisfying customer needs and it’s tangiable

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3
Q

Defintion of service

A

A service is an act that a business person carries out for you in exchange for money for example dental treatment,accountancy and agents.

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4
Q

Definition of land

A

Somewhere to produce the goods e.g farm.

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5
Q

Definition of labour

A

People to work in the business e.g farm worker

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6
Q

Definition of capital

A

Money to get the business started.

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7
Q

Defintion of enterprise

A

This is the drive or motivation from the owners to start a business.

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8
Q

Definition of primary sector

A

Extract raw materials from the earth by digging it up

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9
Q

Definition of secondary sector

A

Manufacturings like cars,toys.

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10
Q

Defintion of tertiary sector

A

When products are sold.

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11
Q

Sole trader

A

Your self employed run your own business as an individual and work for yourself.

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12
Q

Partnership

A

Legal arrangement that allows two or more people to share the responsibility for a business.

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13
Q

PlC

A

A company company that is legally allowed to offer it’s shares for sale to the public

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14
Q

LTD

A

Only allowing to invite people to buy your shares

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15
Q

Not for profit organisation

A

Doesn’t earn profit for it’s owners

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16
Q

Companies house

A

Any limited company or partnership business has to register with companies house.usually a fee to register.

17
Q

Survival

A

Trying to stay open once you open your business

18
Q

Make profit

A

Making more money that you spend on products than buying products

19
Q

Stakeholders

A

A person with an interest or concern about something e.g local community,government,owners.

20
Q

Domestic growth

A

How many shops a business have in a country

21
Q

Internationally

A

How many shops you have you have around the world

22
Q

Suppliers

A

To get the items to the customer quickly

23
Q

Market research

A

Who will buy the product
Why will they buy it
How bug is the market

24
Q

External pressures

A

Who are the competitors
How are they performing
How is the economy performing

25
Sales and marketing
What price shall we charge How can we promote the product How can we distribute the product
26
Production process
Where to setup How to organise the factory What production methods Can we ensure quality
27
Human resources
How many employees What skills/training are needed How will we manage our employees.
28
Financial forecasts
Cash flow Profit and less account Balance sheet Sales.