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A Level Business Sept-Feb OCR > Blackwell > Flashcards

Blackwell Flashcards

1
Q

2 determinates of supply

A

Cost of the supply

Taxation

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2
Q

Market size

A

Collective value of the goods/services that buyers purchase

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3
Q

Market growth

A

Percentage change in the size of market in a specific period

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4
Q

Online market/digital market

A 
Online= get something tangible as a result
Digital= don’t get something tangible (downloads)
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5
Q

Physical/non physical market

A

Physical= an actual store

Non physical= online store

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6
Q

2 barriers to entry

A

Large set up costs

Possibility of an existing business(es) starting a price war

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7
Q

Market structures (biggest-smallest)

A

Monopoly
Oligopoly
Monopolistic competition
Competitive market

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8
Q

Market power

Market dominance

A

Ability of a firm to influence/control the terms and conditions on which goods are bought and sold

A measure of market share compared to competitors

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9
Q

2 Barriers to exit

A

Difficulty of selling off capital

High redundancy costs

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10
Q

Synergy

A

Interaction or cooperation of 2 or more organisations to produce a combined effort that is greater than separate efforts

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11
Q

Economies/diseconomies of scale

A

EOS- as output increases, cost per unit decreases

DEOS- as output increases, as does cost per unit

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12
Q

1 ad + 1 dis of organic growth

A

Risk is far less than external growth

However it is slow- shareholders want faster results

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13
Q

2 Regulation key points

A

CMA (competition and markets authority) can stop mergers and acquisitions going ahead
CMA encourage competition

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14
Q

2 Sanctions CMA can enforce

A

Fine up to 10% of a business’ global turnover

Fine individuals such as directors if they fail to cooperate

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15
Q

GDP (definition, if rising/shrinking, limitations)

A
  • total value of output produced in an economy in a year
    If rising the economy is growing/expanding and visa versa

Doesn’t tell you what’s ahead

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16
Q

Economic growth

A

Annual percentage change in GDP

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17
Q

Inflation ( definition, gov aim and current inf, drawbacks of high inflation)

A

Persistant general tendency of prices in economy to rise
Government aim- 2%
Currently- 4.2%
High inflation= exports uncompetitive as countries won’t buy our products due to higher prices
Businesses won’t invest
People don’t know the worth of their money (£5000 in 5 years?)

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18
Q

Consumer price index (CPI)

A

A measure that examines the weighted average prices of a basket of consumer goods/services

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19
Q

Causes of inflation

A

Cost push- inflation caused by costs increasing

Demand pull- more buyers wanting a product that may have a shortage

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20
Q

Solution to a low exchange rate for a business

A 
Long term: 
More automation
Find a domestic supplier
Short term: 
Reduce other costs
Employ on zero hour contracts
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21
Q

SPICED

A 
Strong
Pound
Imports
Cheap
Exports 
Dear
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22
Q

Interest rate definition:

+ who sets it

A

The reward foe saving and the cost of borrowing expressed as a percentage of amount borrowed or saved
MPC (BOE)

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23
Q

High exchange rate= SPICED

A

Low exchange rates= opposite of SPICED

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24
Q

Impact of higher interest rates

A

Strong pound- higher demand-more hot money
Increase cost on borrowing
Increase reward for saving
Visa versa for low interest rates

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25
Q

Unemployment

A

Where people are willing and able to work but aren’t employed

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26
Q

Drawbacks of high unemployment:

A

Waste of HR
Unemployment may bring social problems such as crime
Less tax for govt
Benefits are a waste of govt spending

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27
Q

Balance of trade

A

Difference between the value of exports and imports
If exports exceed imports- BoT surplus
If imports exceed exports- BoT deficit

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28
Q

How to increase exports

A

Higher quality/unique products
Weak pound
Programmes such as passport to export

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29
Q

Indirect tax

A

Tax on spending, paid indirectly by suppliers

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30
Q

Direct tax

A

Tax on income and profits, paid directly to HMRC from bearer

31
Q

Corporation tax

A

A tax on the profits of businesses

32
Q

Stamp duty

A

Tax on buying a house

33
Q

Purpose of taxation

A

Raises large amounts of revenue for the govt to spend on public services
To control economic activity

34
Q

Monetary policy

A

Manipulation of level of demand through interest rates

Done by MPC

35
Q

Fiscal policy

A

Used to influence level of spending in economy, conducted by the government through taxes and public spending

36
Q

Multiplier effect

A

Effect of changes in one sector on other sectors. If one has change in demand, a knock on effect on suppliers

37
Q

Supply side policies

A

Aim to increase the output of an economy

38
Q

Business cycle

A

Observed pattern of increases and decreases in economic growth (measured in % change of GDP) over time

39
Q

Stages of the business cycle

A

Boom
Recession
Slump
Recovery

40
Q

Businesses responses to a recession/slump

A

Redundancies
Switching to cheaper suppliers
Less holding of stock
Liquidise assets

41
Q

Boom/recovery key points

A

The higher the confidence, the more likley investment is
Higher the employment rate, higher spending in economy
Inflation will be above target during boom

42
Q

How businesses use the business cycle to their advantage during recession/slump

A

Land is cheaper so may capitalise and buy new assets
Shares are cheaper and will almost certainly rise in price during a recovery/boom
Employees can be acquired at a cheaper price

43
Q

Income tax

A

A tax taken out of a persons income. Progressive system in UK

44
Q

National insurance

A

Taken as a contribution towards the state pension and NHS

45
Q

Ethics

A

Concerned with the judgement about whether something is morally right or not

46
Q

Examples of ethical issues

A

Zero hour contracts
Redundancies with managers getting wage increases
Animal testing

47
Q

Benefits of behaving ethically

A

Attracts new customers/employees as their views are aligned with the business’
Creates positive publicity in the media
Prices may be allowed to rise as customers are willing to pay more

48
Q

Disadvantages of behaving ethically

A

Increased costs in turn will decrease profit margins
Danger of building up expectations
Less competitive on price

49
Q

Why some businesses more affected by ethical issues?

A

Larger businesses as they are in the medias spotlight
Businesses that outsource
Businesses with lower prices eg. Primark
Age of target market (younger care)

50
Q

Computer hardware

A

Includes the physical parts of a computer

51
Q

Computer software

A

AKA programmes/apps, instructions that tell the hardware how to perform a task

52
Q

Advantages of hardware and software

A

Systems are usually faster and more efficient
Communication is easier
Costs may be reduced in long term
Remote working made possible

53
Q

Disadvantages of hardware and software

A

High initial costs
May lead to job losses
Not always reliable
Staff need to be trained

54
Q

National minimum wage

A

Minimum amount per hour a worker can be paid by law. Reviewed yearly. Changes as the person gets older

55
Q

Min wage key points

A

Businesses will be fined for breach of civil law and reimburse underpayments
Complying avoids bad publicity
An increase in min wage pushes costs up dramatically

56
Q

Intellectual property

A

Intangible property that is the result of creativity

57
Q

Trademark

A

Company can register for one for its name slogan logo etc

58
Q

Copyright

A

Automatic legal protection against copying

59
Q

Planning permission

A

If new building is wanted to be built/make a major change to your building/change the use of your building you’ll need permission to do so

60
Q

Consumer rights act main principles

A

Product must be:
Of satisfactory quality
Fit for purpose
Product is as described

61
Q

Consumer rights within 30 days of purchase

A

A repair, refund or replacement/exchange

62
Q

Consumer rights after 30 days of purchase

A

A repair, partial refund or replacement/exchange

63
Q

Clean air act

A

Improves sustainability through cutting coal
Reduce burden on NHS
smokeless zones introduced
Households & businesses need to use smokeless products

64
Q

Climate change act

A

UK to become first ‘net zero economy’ by 2050

UK must comply with the act that aims to reduce emissions

65
Q

Purpose of environmental laws

A

To address pollution, protect human health and support continued growth of economies

66
Q

Anti money laundering

A

Activities financial institutions perform to comply with legal requirements to actively monitor for and report suspicious activities. Accountants and solicitors mainly check

67
Q

Anti bribery legislation

A

It is illegal to offer, promise, give, receive or accept bribes

68
Q

Bribery

A

Giving someone a financial or other advantage to encourage people to perform their function improperly

69
Q

Financial laws purpose

A

Encourages professionals to report suspicious activity or known wrongdoing
Promotes fairness and prevent businesses gaining unfair advantages

70
Q

Data protection act

A

Controls how your personal information is used by organisations, businesses and the government

71
Q

Health and safety act

A

Primary piece of legislation covering health and safety in the workplace

72
Q

Benefit of being environmental

A

Increasingly important to investors as they want to see positive change to get a return on their investment

73
Q

20 marker structure

A

2,4,6,8

74
Q

15 marker structure

A

2,2,4,7

A Level Business Sept-Feb OCR (2 decks)

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