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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
Unemployment
Where people are willing and able to work but aren't employed
26
Drawbacks of high unemployment:
Waste of HR Unemployment may bring social problems such as crime Less tax for govt Benefits are a waste of govt spending
27
Balance of trade
Difference between the value of exports and imports If exports exceed imports- BoT surplus If imports exceed exports- BoT deficit
28
How to increase exports
Higher quality/unique products Weak pound Programmes such as passport to export
29
Indirect tax
Tax on spending, paid indirectly by suppliers
30
Direct tax
Tax on income and profits, paid directly to HMRC from bearer
31
Corporation tax
A tax on the profits of businesses
32
Stamp duty
Tax on buying a house
33
Purpose of taxation
Raises large amounts of revenue for the govt to spend on public services To control economic activity
34
Monetary policy
Manipulation of level of demand through interest rates | Done by MPC
35
Fiscal policy
Used to influence level of spending in economy, conducted by the government through taxes and public spending
36
Multiplier effect
Effect of changes in one sector on other sectors. If one has change in demand, a knock on effect on suppliers
37
Supply side policies
Aim to increase the output of an economy
38
Business cycle
Observed pattern of increases and decreases in economic growth (measured in % change of GDP) over time
39
Stages of the business cycle
Boom Recession Slump Recovery
40
Businesses responses to a recession/slump
Redundancies Switching to cheaper suppliers Less holding of stock Liquidise assets
41
Boom/recovery key points
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
How businesses use the business cycle to their advantage during recession/slump
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
Income tax
A tax taken out of a persons income. Progressive system in UK
44
National insurance
Taken as a contribution towards the state pension and NHS
45
Ethics
Concerned with the judgement about whether something is morally right or not
46
Examples of ethical issues
Zero hour contracts Redundancies with managers getting wage increases Animal testing
47
Benefits of behaving ethically
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
Disadvantages of behaving ethically
Increased costs in turn will decrease profit margins Danger of building up expectations Less competitive on price
49
Why some businesses more affected by ethical issues?
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
Computer hardware
Includes the physical parts of a computer
51
Computer software
AKA programmes/apps, instructions that tell the hardware how to perform a task
52
Advantages of hardware and software
Systems are usually faster and more efficient Communication is easier Costs may be reduced in long term Remote working made possible
53
Disadvantages of hardware and software
High initial costs May lead to job losses Not always reliable Staff need to be trained
54
National minimum wage
Minimum amount per hour a worker can be paid by law. Reviewed yearly. Changes as the person gets older
55
Min wage key points
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
Intellectual property
Intangible property that is the result of creativity
57
Trademark
Company can register for one for its name slogan logo etc
58
Copyright
Automatic legal protection against copying
59
Planning permission
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
Consumer rights act main principles
Product must be: Of satisfactory quality Fit for purpose Product is as described
61
Consumer rights within 30 days of purchase
A repair, refund or replacement/exchange
62
Consumer rights after 30 days of purchase
A repair, partial refund or replacement/exchange
63
Clean air act
Improves sustainability through cutting coal Reduce burden on NHS smokeless zones introduced Households & businesses need to use smokeless products
64
Climate change act
UK to become first 'net zero economy' by 2050 | UK must comply with the act that aims to reduce emissions
65
Purpose of environmental laws
To address pollution, protect human health and support continued growth of economies
66
Anti money laundering
Activities financial institutions perform to comply with legal requirements to actively monitor for and report suspicious activities. Accountants and solicitors mainly check
67
Anti bribery legislation
It is illegal to offer, promise, give, receive or accept bribes
68
Bribery
Giving someone a financial or other advantage to encourage people to perform their function improperly
69
Financial laws purpose
Encourages professionals to report suspicious activity or known wrongdoing Promotes fairness and prevent businesses gaining unfair advantages
70
Data protection act
Controls how your personal information is used by organisations, businesses and the government
71
Health and safety act
Primary piece of legislation covering health and safety in the workplace
72
Benefit of being environmental
Increasingly important to investors as they want to see positive change to get a return on their investment
73
20 marker structure
2,4,6,8
74
15 marker structure
2,2,4,7

A Level Business Sept-Feb OCR (2 decks)

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