Brondy's Flashcards
With reference to BRD PLC, describe one advantage and one disadvantage of using share capital to fund external growth [4]
Advantage:
Interest rates are high, with share capital you won’t need to pay interest
Disadvantage:
Potential loss of control
With reference to BRD PLC, describe one advantage and one disadvantage of becoming a public limited company [4]
Advantages:
Higher possibility of market dominance
Disadvantage:
Final accounts are public, this might advantage competition
Paternalistic Leadership
A leadership style where the leader takes on a parental role, providing guidance, support, and decision-making in the best interest of employees.
Niche Market
A smaller, specialized segment of a larger market that caters to specific customer needs or preferences.
Liquidity Crisis
A situation where a company faces a shortage of available cash or assets that can be quickly converted into cash, often leading to financial difficulties.
Innovation
The introduction of new ideas, products, processes, or technologies that bring positive changes to a business or industry
Fringe Benefits
Additional non-monetary perks or advantages offered to employees beyond their regular salary, such as health care, meals, or car allowances.
Employee Engagement
The level of commitment, motivation, and involvement of employees in their work and the organization’s goals.
Batch Production
A manufacturing process where products are produced in groups or batches rather than individually, often to achieve efficiency and cost savings.
Autonomy
The ability of individuals or groups within an organization to make decisions and take actions independently.
Acquisitions
The process of purchasing and taking over other companies or their assets to expand business operations.
Private limited company
a business organization owned by shareholders with limited liability. The shares in a PLC are traded on a public stock exchange
