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Business > 1.what Is Buisness > Flashcards

1.what Is Buisness Flashcards

1
Q

And all 4 business functions

A

HR,marketing, finance , operations

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2
Q

Mission

A

Aim of business that is settled upon by owner

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3
Q

Aim

A

General statement of where the business is heading

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4
Q

Why do business set objectives

A

Motivating, having a clear goal

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5
Q

Profit optimisation

A

Surplus of revenue over costs should be just right neither too high in short term nor low to finance long term

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6
Q

Profit maximisation

A

Make as much profit as possible

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7
Q

Delegated

A

Passing authority down the hierarchy so that local or more expert person makes the decision

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8
Q

Mission statement

A

Short and powerfully expressed sentence or two that explains the business aims clearly yet motivationally

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9
Q

Objectives

A

Targets Precise enough to allow praise or blame for person in charge

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10
Q

Strategy

A

Medium -long term plan for meeting objectives

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11
Q

Interest

A

Cost of borrowing and reward for saving

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12
Q

Smart

A

Specific
Measurable
Achievable
Realistic
Timed

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13
Q

Benefits of business

A

Create employment
Innovate
Pay taxes to government
Create wealth
Help the world

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14
Q

Tactical objectives

A

Focused on short term and low risk and realistic and achievable

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15
Q

Unincorporated

A

Sole traders and partnerships
UnLimited liability
Owner is the business

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16
Q

Incorporated

A

PLC
LTD
Limited liability
Legal difference between owners and business

17
Q

Pros of sole trader

A

Quick and easy to set up, the business can always be transferred to a limited company once launched
Simple to run, owner has complete control and over decision making and it’s easy to close and shut down
Minimal paperwork 

18
Q

Cons of sole trader

A

Unlimited liability
How to raise finance
The business suffers if the owner becomes ill owners interest

Can pay a higher tax rate than a company

19
Q

Company

A

Illegal entity for owners of a company are shareholders

20
Q

Benefits of limited companies

A

Limited liability
Easy to raise finance
Stable formal structure, business continues to exist, even when she holders change

21
Q

Cons of Limited, companies

A

Greater admin costs
Public disclosure of company information
Directors legal duties 

22
Q

Public sector companies

A

Whereas small number companies are owned or controlled by the government for example network rail RBS

23
Q

Public sector organisations

A

There are many more organisations that provide goods and services which are owned and I’ll by public bodies
Funded by central local government
For example, NHS high agencies 

24
Q

Not for profit organisations

A

Businesses that trade in order to benefit the community, the businesses have social aims as well as trying to make money 

25
Q

Demand

A

The amount of a product of service that customers are prepared to buy

26
Q

Costs

A

Amount that a business incurs in order to make goods and or provide services 

27
Q

Two main ways to increase revenue

A

Increase quantity sold and achieve higher selling price 

28
Q

Examples of variable cost

A

Raw materials, wages, marketing costs ,bought in stocks 

29
Q

Examples of fixed cost

A

Rent and rates salaries, advertising insurance, and banking software, design and development

30
Q

Profit

A

Rewards or return for taking risks and making investments

31
Q

Two ways to measure profit

A

Profit absolute terms and profit relative terms

32
Q

Stakeholder 

A

A stakeholder is any individual or organisation who has a vested interest in the activities and decision-making of a business

33
Q

Internal stakeholders

A

Employees and shareholders and owners

34
Q

Connected shareholders

A

Customers, suppliers and creditors 

35
Q

External shareholders

A

Competitors, government and society/community

36
Q

Profit warning

A

Mark expeditions will not be met, almost always result in a significant full and share price 

37
Q

Two methods of issuing shares for a public company

A

Flotation and rights issue Rights issue is the new shares given to existing shareholders to have the right subscribe for the new shares at significant discount price
Flotation is stock exchange, 

Business (8 decks)

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