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business managment > #1AOS1 business foundations SAC 1 > Flashcards

#1AOS1 business foundations SAC 1 Flashcards

1
Q

types of business structure;

A
  • social enterprise
  • public limited companies
  • private listed companies
  • sole trader
  • partnerships
  • government business enterprise
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2
Q

Type of business structure
social enterprise definition
advantages and disadvantages

A

A type of business structure that exists primarily to fulfil a vision that benefits the community or social need rather then shareholders

avantages;
meet a social need can encourage community support- increase profit
improve moral within business (employees value work they do)

disadvantages;
difficult to obtain finance to begin
difficult to focus on financial and social objectives

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3
Q

Type of business structure
Government Business Enterprise (GBE) definition
advantages and disadvantages

A

A type of business structure that is owned and operated by the government, with the aims to make profit along with carrying out government polices. owned by the government, and controlled by a board of directors

advantages;

  • benefits community, as may invest in an area that private sector may hesitate benefiting community
  • provide healthy competition to private sectors- decrease price increase goods

disadvantages;
- strategic direction can change if government does
- came political interferences
-

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4
Q

Type of business structure
Listed Company
advantages and disadvantages

A

A type of business structure that is Publicly listed on the exchange for members of the public to freely by shares. The business owner has limited liability.

advantages;

  • limited liability
  • all public has opportunity to buy shares after 18 yrs

disadvantages;
highly complex, time consuming to establish to list on public exchange
- loss control, don’t have to approve shares or % of shares

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5
Q

Type of business structure
limited company
advantages and disadvantages

A

A type of business structure that is privately owned by 2-50 shareholders, that are not freely available to the public instead have to have permission from other shareholders and be invited into the shares.

advantages- limited liability

  • life of company can live longer then directors
  • attract more capital cause of shares then sole traders or partnerships

disadvantages- more complex and expensive to setup

  • shares cannot be traded feely (not as easy to attract finance)
  • more reporting required to government and owners
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6
Q

Type of business structure
partnership
definition
and advantages and disadvantages

A

A type of business structure that is owned by 2-20 people. as Partners share the same entity, all members have unlimited liability, meaning owner responsible for all the businesses debts, if business unable to pay its owner is liable.

advantages; workload shared
- different skills and experience brought to business

disadvantages; potential for disagreements over key decisions

  • liability for debts incurred by other parteners
  • shared profits
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7
Q

Type of business structure
soletrader definition
and advantages and disadvantages

A 
A type of business structure that is owned by one person. that is responsible for all aspects of the business including financial and operational side (unlimited liability) 
advantages 
- simple and inexpensive to set up 
- complete control 
- keeps all net profits 
 disadvantages
- unlimited liability 
- burden on managing the entire business
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8
Q

objective

A

an objective is desired goal, outcome or specific result that a business intends to achive

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9
Q

5 types of objectives

A
  • to make a profit
  • increase market share
  • fulfil a market need
  • fulfil a social need
  • meet shareholders expectations
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10
Q

to make a profit (objective)

how

A

amount of money left over after expenses have been deducted from revenue. Means able to survive and grow
- increase sales and revenue or minimising their spending

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11
Q

increase market share (objective)

how

A

the proportion of the total sales the business has in an industry for a particular goof or service. Represented as a percentage, showing customers choosing their business over another.
- strengthen customer relationships

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12
Q

fulfil a market need (objective)

A

market is a specific group have similar characteristics that businesses focusing selling goods and services need to think about peoples needs and wants.
-market research to find what needs and wants of different consumer groups are and the business aims to satisfy their needs and wants

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13
Q

fulfil a social need (objective)

A

Goods/services sold to generate money to positively improve the community lives/environment

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14
Q

meet shareholders expectations (objective)

A

those that own the business, expect return on their investment through
capital gains- value of business increase (shares increase too)
dividends- their share in the business profits

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15
Q

stake holders (objective)

A

groups and individuals who have some form of interest in the business and after affected by activities. stakeholders can exists in the internal and external environments of a business

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16
Q

types of stake holders (7)

A
  • owners/shareholders
  • employees
  • managment
  • customers
  • suppliers
  • competitors
  • community
17
Q

owner/sharholders (stakeholders)

  • definition
  • their interests
  • csr
A
  • invest money into the business, to own a share of the business.
  • interest is wanting return on their investment through capital gains, improve profits (dividends), increase share prices
  • csr; managers being honest with current and potential shareholders regarding future for the business so they can make wise investment decision
18
Q

managers (stakeholders)

  • definition
  • their interests
  • csr
A
  • employeed by the business to over see employees and make decisions for the business, to ensure business strategy is carried out so the business objectives are achieved. can be one or more levels of management depending on size of business
  • their interest involved in decision making, objectives being met and take correction action if they are not. make sure employees are kept working hard and completing set tasks
  • csr; fair pay, positive work conditions
19
Q

Employees (stakeholders)

  • definition
  • their interests
  • csr
A
  • people that work in business in exchange remuneration. the ones that complete activities to achieve business objectives.
  • their interests fair pay, good working conditions, ongoing employment
  • csr; ongoing training, career advancement, fairway and good working conditions
20
Q

customers (stakeholders)

  • definition
  • their interests
  • csr
A
  • shoes who purchase goods/ services from business, who must meet their expectations in oder to remain competitive
  • their interests; goof quality products at a fair price
    csr; ensure high quality products (value for money)
21
Q

suppliers (stakeholders)

  • definition
  • their interests
  • csr
A
  • those that provide a business with materials and other resources. important for business to develop strong relationship with suppliers
  • interests; strong/ long term relationship meaning arrive on time and potentially lower costs, paid on time
    csr; local suppliers, seeking ethical suppliers (fair trade)
22
Q

competitors (stakeholders)

  • definition
  • their interests
  • csr
A
  • rival business that sell similar product in the same market. Business need to monitor their competitors actions (what selling and prices) so they can respond and remain competitive
  • their interests are healthy and fair competition, ensure gain competitive edge over other business, differentiate their product or service, compare and evaluate their performance against others
    csr; fair competition, no harm in advertising
23
Q

Community (shareholders)

  • definition
  • their interests
  • csr
A
  • have a responsiblity to the community they run in (those living in same place business does) and sell to look to benefit the community
  • their interests; business give ack to the community, employment opportunities, minimise their impact on environment
  • csr; ethical waste disposal (minimise impact on community)
24
Q

capital gain

A

profit from investment

25
Q

dividends

A

Money paid to shareholders, out of its profits

26
Q

remuneration

A

money paid for work or a service

27
Q

money paid for work or a service (whats this called plus spelling)

A

remuneration

28
Q

ares of business management responsibility (5)

A
  • operations
  • finace
  • marketings/sales
  • technological
  • human resources
29
Q

operations

  • definition
  • activities involved
  • how business objectives met
A

-responsible for maintaining the process of goods and services (transporting quality inputs into out puts in an effect and efficient way to reach customers satisfaction)
-ordering, sourcing stock. ensure meets customer expectations, redesigning the sequence of production to be the best
- quality outputs= revenue as well as customers satisfaction meaning objectives around sales are met.
(increase sale and market share, productivity and profit)

30
Q

finance

  • definition
  • activities involved
  • how business objectives met
A
  • monetary aspects of the business, receiving and spending money (surplus= in and out money) as well as budgeting for the business.
  • budgeting, financial planning, day to day payments and receipts
  • ensure revenue higher then expenses increases profit to be able to buy supply to meet customer satisfaction as well as shareholders because of dividends
31
Q

human resources

  • definition
  • activities involved
  • how business objectives met
A
  • the area that managers the relationships between the employees and the business
  • activities involve; recruitment, selection training, motivating, ultimate termination
  • skilled employees , motivated, increase productivity fulfils a market need
32
Q

sales and marketing

  • definition
  • activities involved
  • how business objectives met
A
  • responsible for promoting the business and its products with their end consumers.
  • actives involved; determining product features, pricing, promotion, distribution, customer services and after sales support
  • business objectives; customer sales increase profit, increasing shareholders dividends meeting shareholders expectations
33
Q

technology

  • definition
  • activities involved
  • how business objectives met
A

-responsible with providing employees and customers with user friendly technology and assistance for individuals have technical problems with electronics devices.
-activites include; computer problems, website crashes, phones fixed
business objectives; keeping employees productive, customer satisfaction is met increasing sales and profit and market share increases

34
Q

corporate social responsibility

A

CSR is used by a business when making decisions, business need to ensure there decisions are both ethical and socially responsible. And there is no negative effect on the environment or public.

business managment (5 decks)

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