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A-Level Business > ASW > Flashcards

ASW Flashcards

1
Q

what is adding value

A

the process of making the product more valuable to the purchaser

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2
Q

methods of adding value

A

convenience, branding, quality, design, usp

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3
Q

what aims could a business have?

A

survive, break even, be more sustainable, make a profit

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4
Q

what is a mission of a business?

A

it’s overall purpose or main corporate aims or what they want to achieve

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5
Q

what are corporate objectives?

A

they are set to enable a business to achieve its missions/aims

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6
Q

what are functional (departmental) objectives?

A

they are a set of objectives for each department

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7
Q

What must all objectives be?

A

all objectives must be SMART

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8
Q

what does SPECIFIC (S) mean?

A

objectives are aimed at what the business does

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9
Q

what does MEASURABLE (M) mean?

A

the business can put a value to the objective

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10
Q

what does ACHIEVABLE (A) mean?

A

it must be able to be done by all those concerned in trying to reach the objective

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11
Q

what does REALISTIC (R) mean?

A

it should be able to be achieved with the resources available

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12
Q

what does TIME (T) mean?

A

progress can be checked and you can see if the objectives have been achieved or not

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13
Q

what is the formula for profit

A

total revenue - total costs

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14
Q

what is the formula for revenue?

A

selling price per unit x quantity of units sold

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15
Q

what is the public sector?

A

business that are owned and run by the government - aim to provide for the public rather than to make a profit (eg nhs and schools/universities)

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16
Q

what is the private sector?

A

owned by private individuals, usually have the main aim of making profit

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17
Q

what is limited liability?

A

you can only lose the money that you have put into the business and your personal assets cannot be taken.

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18
Q

what is unlimited liability?

A

the owner of the business is legally able to lose their personal assets

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19
Q

what is a sole trader?

A

a company which is run by one individual. they are the most common form of business and they are personally responsible for all business debts.

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20
Q

what are the advantages of a sole trader?

A

quick and easy to set up, simple to run, easy to close/shut down, owner is entitled to all profits and can choose when they work

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21
Q

what are the disadvantages of a sole trader?

A

unlimited liability, harder to raise finance, business suffers from owner’s absence, limited expertise, potentially long hours

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22
Q

what is a partnership?

A

started and owned by more than one person

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23
Q

what are the advantages of a partnership?

A

fairly simple to set up, expertise and efforts of more than one person, can provide specialist skills, greater potential to raise finance.

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24
Q

what are the disadvantages of a partnership

A

unlimited liability, complicated to sell or shut down, poor decisions by one partner can damage the interests or ideas of another

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25
Q

what is a private limited company? LTD

A

usually family businesses who cans sell shares to their friends/family

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26
Q

what are the advantages of LTD?

A

limited liability, allows you to get finance easier, viewed as more prestige (improving public image)

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27
Q

what are the disadvantages of an LTD

A

difficult to set up, difficulty to close down, all shareholders have to agree on decisions, not on the stock exchange, harder to make decisions.

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28
Q

what are public limited companies? (PLC)

A

can sell shares to the public, usually started off as private and switched to public as they grew

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29
Q

what are the advantages of PLC?

A

limited liability, easier to raise finance, stable form of structure, can pay less tax.

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30
Q

what are the disadvantages of PLC?

A

greater admin costs, have to publicly disclose company information, must give away a % of your business

31
Q

what is the stock exchange?

A

the stock exchange is where you buy and sell shares in a business

32
Q

what are shares?

A

shares are part of a business that you own

33
Q

what is ordinary share capital?

A

it is money that has been raised by selling shares

34
Q

what are dividends?

A

dividends are a proportion of the profits earned by the company which are split and paid out to shareholders.

35
Q

what is market capitalisation?

A

the total value of all of the ordinary shares issued by a company

36
Q

what is the formula for market capitalisation?

A

number of shares issued x current share price

37
Q

what are stocks?

A

stocks are a type of security that represents ownership in a corporation. stocks and shares are sold on the stock exchange

38
Q

why might shareholders invest?

A

capital gain (buying shares low and selling high), may receive a dividend due to their investment, want to be involved in running a business, believe in the aims of the business.

39
Q

what are the main roles of shareholders?

A

to provide funds, most shareholders are not involved in the running of a business.

40
Q

what could influence share prices?

A

scandals, trends, supple/demand, competitors’ actions, the state of the economy, the value of the business, interest rates

41
Q

what is rights issued?

A

when a company offers existing shareholders the chance to buy additional shares in the business for a lower price.

42
Q

what is business environment?

A

all of the internal and external factors that affect how a business functions

43
Q

what is market share?

A

what % of the market you ‘own’

44
Q

what is PESTLE and what does it stand for?

A

it is a way of analysing the external business environment. POLITICAL, ECONOMICAL, SOCIAL, TECHNOLOGICAL, LEGAL, ENVIRONMENTAL.

45
Q

what are the 6 external influences?

A

competition, market conditions, income, interest rates, demographics, environment and fair trade

46
Q

what are ethics?

A

moral principles or standards that guide the behaviour of a person or business.

47
Q

what makes a business ethical?

A

working conditions, rates of pay, quantity of work, importing of goods, diversity, reducing packaging, minimising impact on the environment.

48
Q

what are the advantages of behaving ethically?

A

improve, business image, happier customers, good PR, usually better quality products.

49
Q

what are the disadvantages of businesses behaving ethically?

A

costs may increase, ‘unethical’ things may not be deemed to be unethical to others.

50
Q

what is marketing

A

the process of identifying, anticipating and satisfying customer needs profitably

51
Q

what is needed from marketing objectives?

A

set out what the business wants to achieve from its marketing
need to be consistent with overall aims and objectives of the business
provide a focus for marketing management

52
Q

what is market analysis

A

market analysis gives firms information about market size and growth

53
Q

what is the formula for market growth (%)

A

new market size - old market size / old market size x 100

54
Q

what is market share?
(definition)

A

market share is the percentage of sales in a market that is made by one firm, or by one brand

55
Q

what is the formula for market share?

A

sales/total market size x 100

56
Q

what is the formula for sales growth?

A

sales this year - sales last year / sales last year x 100

57
Q

internal influences on marketing objectives

A

budget, workforce skills, operational targets, shareholders’ objectives, managers’ opinions

58
Q

external influences on marketing objectives

A

interest rates, competitor’s actions, consumer tastes, environmental factors, social trends.

59
Q

what is market size?

A

the number of sales in a market as a whole

60
Q

what is sales growth?

A

the percentage increase in the size of the sales of a firm in terms of either value or volume

61
Q

how can markets be classified?

A

geography, nature of the product, seasonality, development level, product destination.

62
Q

what is market research?

A

the process of gathering information (data) about the market

63
Q

why is market research done?

A

allows businesses to spot opportunities, helps with decision making, helps them identify if their plans are working.

64
Q

what is quantitative data?

A

concerned with data (usually numbers) - fixed answers
based on larger samples

65
Q

what is qualitative data?

A

based on opinions, attitudes, benefits and intentions. is commonly collected in focus groups and interviews

66
Q

advantages of quantitative

A

can take less time to receive and fill out
easier for the participant and for comparisons

67
Q

disadvantages of quantitative

A

don’t get any form of opinions
not specific enough

68
Q

advantages of qualitative

A

find out what the customer wants / their opinions
more detailed

69
Q

disadvantages of qualitative

A

more difficult for the participant

70
Q

advantages of primary research

A

you are the only one that has that data
tailored towards your business

71
Q

disadvantages of primary

A

it can be expensive or time consuming to gather

72
Q

advantages of secondary research

A

not so time consuming
more efficient to gather
cheaper to gather

73
Q

disadvantages of secondary research

A

can be outdated
may not be lined to your business

A-Level Business (6 decks)

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