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.
What is child labour
Children can be found working in many export-oriented industries, including garments and footwear, glass manufacturing, leather tanning, stone quarries, and gem stones. Many work unacceptably long hours, often in unsafe conditions or with minimal respect for their rights.
What does interest rates mean
An interest rate is the cost of borrowing money or the return for investing money.
What does globalisation mean
Globalisation involves businesses buying and selling around the world, often due to the cost or availability of products or cheap labour. Additionally, some products have a reputation for being from a certain part of the world, so versions of the product from that location may be highly desired.
What does multinational mean
companies that operate in a number of countries around the world. Globalisation has hugely increased the number of MNCs around the world.
What are exchange rates
The exchange rate is the price of one currency. expressed in terms of another currency. For example, £1.00 = €1.13 or £1 = US $1.20. The value of a currency is determined by supply.
What is an non-profit organisation
A not-for-profit organisation is a business that aims to do something other than to make profit for the owners, such as providing a public service or helping people
What is the stock exchange
stock exchange is a business organisation that helps companies and government authorities to sell their shares to people and other organisations that want to buy them.
What does salary mean
fixed compensation periodically paid to a person for regular work or services.
What are some advantages of having a private limited company
Reduced risk of personal liability. …
Higher business profile. …
Easier access to growth funds. …
Protected business name
What are some disadvantages of having a private limited company(plc)
4 – Shared Ownership. …
5 - Limited Stock Exchange Access. …
6 - Lack of Flexibility. …
7 - Difficulty Raising Capital. …
8 - Personal Financial Liability.
What are some advantages of having a public limited company
the public can invest in them. …
Transferability of Shares. …
Legal Entity. …
Less Risk Involved. …
Expansion
What are some disadvantages of having a public limited company
.is expensive to set up, requiring a minimum set up cost of £50,000.
.there are more complex accounting and reporting requirements.
.there is a greater risk of a hostile takeover. …
.shareholders will expect to receive a percentage of the profits as dividends.
What does varible cost mean
Variable costs are those that change as the amount produced, or the number of customers served, changes. Examples of variable costs include: raw materials. packaging.
What does bulk buying mean
the buying at one time of a large quantity of a particular product. E.g
you buy ten boxes of batteries together for a fraction of their individual sale price.
What does e-commerce mean
E-commerce refers robthe buying and selling of goods and services online. It includes any transactions between businesses carried out using the internet.
What is franchising
the right given by one business to another to sell goods using its name
Whats the difference between organic and external growth
Organic growth, occurs when a business decides to expand its own activities by launching new products or new marketing. External growth is when the business merge together or a takover.
what are fixed cost
they are directly related to production rent, rates, interest payments and salaries
what are the difference between aims and objectives
aim is long term and provides overall direction, while objectives are short term and measurable.
what is unlimited liability
this exist in general partnerships and sole traders.Each business owner is equally responsible for whatever debt accrued within a business.
What is limited liability
Limited liability means that the business owner or owners are only responsible for business debts.
What is a trade off
A trade-off is when you choose one thing which causes you to have to give up, or sacrifice, another.
What is globalisation
Globalisation involves businesses buying and selling around the world, often due to the cost or availability of products or cheap labour.
What are consumer laws
any piece of government legislation. designed to protect consumers from poor-quality products and poor business practices.
What are the health and safety law
outlines the responsibilities that both employers and employees have in keeping the working environment safe. Employers should provide: staff training. safety equipment, including tools and clothing where appropriate.
What are examples of employment law
Minimum wage, age discrimination, disability, gender,
What is a risk in a business
Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.
What situation would a business be in if there was no competition
Entrepreneurs who don’t have competition should be wary. Rather than being a strength, a lack of competition in your market can be indicative of a serious weakness.
What are some impacts on competition for a business
Competitors can be problematic for businesses. For example, some competition can be territorial (within the same location or area), where one business tries to force other businesses to close down by setting its prices extremely low or putting on offers that other businesses can’t compete with.
What is market risk
. A company’s marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition.
What are exxhange rates
An exchange rate is the rate at which the money of one country can be exchanged for the money of another country.
Lean production
An approach to productionthat aims to minimise waste.
Just in time production(JIT)
Holds as little stock as possible.Items are ordered just in time to be used.
Kaizen
Continuous improvement.Is is an approach to production that aims to achieve change of a series of small steps
Just in case production(JIC)
Holds stocks just in case there is a delay from supplies or a sudden unexpected increas in demand.
Purchasing economies of scale
Occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.
Procurement
Involves selecting suppliers, establishing the terms of payment and negotiating the contract.
Supply chain
The supply chain refers to all the businesses, people and activities that take part n the production processes from the start until it gets to the cusomer.
Logistics
Logistis refers to the movement of good , services, information and money throughout the production process.
