Brainscape's Knowledge GenomeTM

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


See full index

AS business > 1.2 > Flashcards

1.2 Flashcards

1
Q

Private Sector

A

Privately owned businesses with main motive of profit. only exists in free economy

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

Public Sector

A

Owned , funded and controlled by government. Operates for welfare of community and profit is second motive. Provide essential facilities that will be underprovided otherwise . only exists in planned econmy

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

Free Market

A

Economy where there is no government intervention and resources are allocated based on price mechanism

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

Planned Market

A

An economy where the government owns all the businesses and resources are allocated based on quotas and rationing

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

Advantages of Public sector (2)

A
  1. Social Objective - society benefits
  2. Tax financed - Loss making public services can work
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Disadvantages of Public sector (2)

A
  1. Inefficient - subsidies reliant
  2. Government interference - political favor
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sole Trader

A

A business in which one person provides full control over the finance and in return has full control over the business and is able to keep all the profits

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

Advantages of Sole trader (3)

A
  1. Easy to set up - less legalities
  2. Flexible - full control
  3. no profit sharing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Disadvantages of Sole trader (3)

A
  1. Unlimited Liablity
  2. Less invesmnets - no loans
  3. Lack of continuity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Unlimited Liability

A

Business owners have full legal responsibilities of the debt of the business

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

Partnership

A

A business in which two or more people come together to own a business and has shared capital Invesment and shared responsibly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Advantages of Partnership (3)

A
  1. Share workload- specialization
  2. Additional capital
  3. Loss and risk shared - less personal finance burden
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Disadvantages of Partnership (3)

A
  1. Unlimited liability
  2. Prodfits are shared - less return
  3. Loose decision making independance- more conflicts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Private Limited Company

A

Business owned by shareholders who are often members of the same family. Company cannot sell shares to the general market

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

Shareholders

A

Owners in a private or public limited company who have voting rights and get dividends in return for Invesment.

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

Disadvantages of Private Limited Company (4)

A
  1. Serval legal formalities - expensive and time consuming
  2. Less capital - cannot sell stock to public
  3. No secrecy - public inspection
  4. Hard to sell stocks - less desirable
16
Q

Advantages of Private limited company (4)

A
  1. Limited liability - personal assets are safe
  2. Separate legal identity - faulty products
  3. Continuity
  4. Raise capital - more Invesment
17
Q

Public Limited Company

A

A company whose shares are traded on stock exchange and can be bought and sold publicly

18
Q

Advantages of Public limited company (5)

A
  1. Limited liability
  2. Continuity
  3. Separate legal identity
  4. Lage sums of Capital - stock general public
  5. Easy to buy and sell shares - more invesment
19
Q

Disadvantages of Public Limited company (3)

A
  1. No secrecy over accounts - competitors can use
  2. Risk of takeover due to availability - another company can assume control
    3.Sevela legal formalities - expensive
20
Q

Co-operatives

A

Jointly owned business operated by members for their mutual benefit of producing or distributing goods or services. Consumer and framer cooperatives are examples

21
Q

Advantages of co-operatives (3)

A
  1. Economies of Scale
  2. Work together - better decision making
  3. Motivated - share profit
22
Q

Disadvantages of co-operatives (3)

A
  1. Poor Managment - inefficiency
  2. limited finance - no stocks
  3. All members need to be consulted - disputes
23
Q

Advantages of franchise (3)

A
  1. Less chances of failure - established brand name
  2. Pay for advertising and training
  3. Increase business expertise - quality suppliers
23
Q

Disadvantages (4)

A
  1. Initial license fees is expensive - financial pressure
  2. Limited control
  3. Profits shared
  4. Not all costs covered - local promotion
24
Q

Franchise

A

Legal right to us the name , logo and trading system of an already successful business

25
Q

Joint Venture

A

Two or more businesses agree to work closely together on a project and create a separate business division to do so

26
Q

Advantages of Joint venture (3)

A
  1. Cost and risk are shared- innovation
  2. Different strength and experiences- better products
  3. Explore new areas of market - more sales
27
Q

Disadvantages of Joint venture (3)

A
  1. Different culture and managment - conflicts
  2. Blame and failure of one is risk
  3. Profit are shared
28
Q

Social Enterprise

A

A business with mainly social objectives that reinvests most of profits into benefiting society rather than maximizing returns to owners

29
Q

Triple bottom line objectives

A

Economic, Social, Enviromental
1. Economic: Make profit and reinvest in business for growth. Operate in multiple area.
2. Social: Provide jobs for local.
3. Enviromental: sustainable environmental polices

30
Q

Features of social enterprise (4)

A
  1. directly produce or provide goods and services
  2. social aims and ethical ways
  3. Surplus profit to survive - no charity
  4. face competition

AS business (11 decks)

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