Brainscape's Knowledge GenomeTM

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


See full index

Mr Perry business > 3.1 what is a business? > Flashcards

3.1 what is a business? Flashcards

1
Q

what is a business?

A

a business is an organisation that exists to provide goods and services to customers

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

what are goods?

A

tangible products

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

what are services?

A

intangible products

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

what are customers?

A

individuals buying from businesses or organisations

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

why do businesses exist?

A

-they are formed by entrepreneurs
-to earn a return for the business owner
potential for profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

how do businesses play a key role in wider society?

A

-create employment
-create new products
-contribute to infrastructure
-pay taxes earned by the government
-create wealth by providing returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what do roles do entrepreneurs have?

A

-spot business opportunities
-take calculated risks
act as a catalyst for creation and growth

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

what is a business objective?

A

they are statements of specific outcomes that are to be achieved
they are often set at various levels and in financial terms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are the components of objectives?

A

mission - overall purpose of the business
vision - overall aspiration of the business
aims and goals - what a business intends to achieve
objective - more precise and detailed statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the mission of a business?

A

overriding goal of the business, provides a strategic perspective

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

advantages of an effective mission statement

A

-differentiates the business from competitors
-defines the markets or business in which the business wants to operate
-relevant to stakeholders
-motivates employees

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

what is the SMART criteria?

A

specific
measurable
agreed
realistic
timely

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are corporate objectives?

A

refers to the business as a whole, the focus on the desired performance and results of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are functional objectives?

A

relate to the specific functions of a business for example marketing, operations or HR
they are designed to ensure that the corporate objectives are achieved

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

what is profit?

A

the reward or return for taking risks and making investments

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

how is profit calculated?

A

total sales(revenue) - total costs

17
Q

what is revenue?

A

the amount of a product that customers actually buy from a business

18
Q

what is demand?

A

the amount of a product that customers are prepared to buy

19
Q

what are the factors affecting the level of demand?

A

-prices and incomes
-trends
-competitors actions
-seasonality

20
Q

equation for total revenue

A

total revenue = volume sold x average selling price

21
Q

how can a business increase revenue?

A

-increase the quantity sold
-achieve a higher selling price

22
Q

what are costs?

A

amounts that a business pays in order to make goods and services

23
Q

why are costs important?

A

-drains away the profits
-can impact profit margins
-main cause of cash flow problems
-change depending on output

24
Q

what are variable costs?

A

costs that change depending on output changing

25
Q

what are fixed costs?

A

do not change depending on output changing

26
Q

equation for total costs

A

variable + fixed

27
Q

what do unincorporated businesses include?

A

-the owner is the business
-unlimited liability
-sole traders and partnerships

28
Q

what do incorporated businesses include?

A

-separate legal identity
-limited liability
-private limited companies and public limited companies

29
Q

what is limited liability?

A

shareholders only lose what they invested

30
Q

what is unlimited liability?

A

shareholders have to pay the debts and also their investements

31
Q

what is a share?

A

a share is an individual part of the total issued share capital of a company

32
Q

how is the value of a business determined?

A

by the price at which shares are bought and sold

33
Q

what is market capilisation?

A

represents the total market value of the issued share capital of the company

34
Q

what are not for profit organisations?

A

they don’t aim to gain financial reward for their business

35
Q

what are mutual businesses?

A

do not have shareholders or other owners, they exist for their members

36
Q

what is a social enterprise?

A

makes its money in a socially responsible way, designed to benefit others

37
Q

what are charities?

A

they use the money earned from fundraising or operating services to benefit others in need

38
Q
A

Mr Perry business (2 decks)

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