3.1 What Is Business? Flashcards
What is a business?
An organisation that sells a service or product in pursuit of profit or another end goal.
What is a mission statement?
A simple and brief description that encompasses the purpose of a company defining its culture, goals and values.
What is an objective?
Statements of specific outcomes that are to be achieved.
What does SMART stand for?
Specific
Measurable
Achievable
Relevant
Time bound
What are some common business objectives?
- expand market presence by entering two new international markets by Q4
-increase quarterly revenue by 15% through a targeted sales strategy.
What is the difference between fixed and variable costs.
- variable costs change depending on the business’s output, fixed costs do not change no matter the business’s output.
Difference between public and private sectors in a business
Private sectors are owned and operated by an individual or groups, public sectors are owned and managed by the government.
What is an unincorporated business
A business that hasn’t been registered as a legal entity separate from its owner
Incorporated business definition
A business that has been registered as a legal entity separate from its owner.
Different types of ownership
- Public limited company
- private limited company
- sole trader
- partnership
- not for profit organisation
What is a public limited company?
A business that is legally allowed to sell its shares to the public (stock exchange)
Example -Barclays
Private limited company
A business that is owned by the shareholders, run by directors and where the liability of the shareholders for debts of the company is limited.
Example - apple
Sole trader
A person who is the exclusive owner of the business, they can have one or more employees.
Example - electrician
Partnership
A business where there are two or more owners of the enterprise. They usually establish a deed of partnership where it is agreed the profits they share, the workload etc.
Example - Ben and Jerry’s
What’s a not for profit organisation?
Not for profits’ activities are not for the financial benefit of the owners.
Example - charities like UNICEF.