All Flashcards
What does opportunity cost mean
An opportunity cost is something that is given up in order to do something else. For example this could be when a business must choose between two different office locations, they will face opportunity costs for the location they do not choose. E.g school,offices ect
What are stakeholders and what are there objectives
A stakeholder is an individual or group impacted by business activity. Internal Stakeholders are those impacted by business activity inside the business: owners, shareholders, managers,employees,customers,suppliers,investers,the community and the government. External stakeholders are not owners or employees e,g Suppliers, creditors, and public groups ,but are affected by the activity of the business.
What is a sole trader
a simple business structure in which one individual runs and owns the entire business.
What is a partnership
A partnership is a type of business that has between 2 and 20 owners. They decide to set up and run a business between them. Partnerships are often found in businesses that provide a professional service, such as lawyers, doctors and accountancy practices.
What is a Ltd(private limited company)
Private Limited Companies (Ltds) – shares are sold privately, usually to family and friends. Shares can only be sold if all the shareholders agree.
What is a plc (public limited company)
A public limited company (‘PLC’) is a company that is able to offer its shares to the public. They don’t have to offer those shares to the public, but they can. Well over 95% of limited companies in the UK are “private” – it is by far the most common form of limited company.
Whats the difference between aim and objectives
Aim is long-term and provides overall direction, while objectives are short-term and measurable. Aim focuses on the purpose and “why” of a project, while objectives emphasize the actions and “what” to accomplish.
Whatare some advantages of expanding a business
.economies of scale.
.more power in the market.
.increased status and reputation will make it easy to launch new products.
.staff may be rewarded, which will increase motivation.
.more money.
What are some disadvantages of expanding a business
.A shortage of cash. You may need to borrow money to buy new premises or equipment to expand.
.Increased capital requirements. …
.Loss of control. …
.Compromised productivity and quality due to lack of resources.
Why is location important for a business
Deciding where to locate a business has always been important. Location plays a huge role in attracting and retaining the best employees, many of whom keep a close eye on where they’re based in order to optimize work-life balance. Good location decisions can significantly boost a company’s long-term performance.
What is economic climate mean
all the components that affect a business such as GDP growth, inflation, interest rates, consumer confidence, and business sentiment.
How can economic climate affect a business
A strong economic climate can lead to higher consumer and business spending, increasing demand for products and services. In contrast, a weak economic climate can lead to reduced demand and lower sales.
What is revenue
Revenue is any money that a business makes from selling its goods and services, whereas costs are anything that a business pays for.
Benifits of being environmentally responsible
Less plastic waste. …
Lower carbon footprint. …
Less energy consumption. …
Less water waste. …
Better planet for future generations.
What is legislation
Legislation is a set of laws put in place by the government to protect businesses, employees and consumers. Businesses must operate within these laws to ensure the fair and safe treatment of any party involved with a business.
How does a business survive
Business survival refers to keeping the business operating for a certain amount of time. Most businesses initially aim to survive their first year.
What is profit maximisation
Profit maximisation refers to any money left over after all costs have been taken away from any revenue made by a business. Businesses want to make as much profit as possible. Sales refer to an amount of a product or service sold by a business.
What the difference between domestic and international growth
Domestic growth is when a business grows there business in one country and international growth is growth for a business around the world.
What is market share
The share of the total market that is owned by a particular business, product or brand. Market share is the percentage of the total market that a company’s products or services represent.
Name the stakeholders
.owners
.local community
.employees
.customers
.investers
.suppliers
.government
.competitors
What is a stakeholder
Stakeholders are individuals or groups that have interest on other businesess.
Why is location very important for a business?
Location plays a huge role in attracting and retaining the best employees, many of whom keep a close eye on where they’re based in order to optimize work-life balance. Good location decisions can significantly boost a company’s long-term performance. Poor ones can cost millions in lost talent, productivity and capital.
What is a business plan
A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them.
What is an disadvantage of an business plan
Industries and even wider business climates can change very quickly. This means that even taking the time and money to create an in-depth business plan can be risky. In a world where nothing is 100% certain.
What is advertising
Advertising presents or promotes the product to the target audience through a variety of media such as TV, radio, cinema, online and magazines to encourage them to buy.
What does ethics mean
Ethics refers to well found standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations benifits to society, fairness or specific virtues.
