business Flashcards
What is Business?
The activity of producing goods and services to satisfy the needs and wants of people.
What are the types of business activities?
- Production: Creating goods and services.
- Marketing: Promoting and selling goods and services.
- Finance: Managing money within the business.
- Human Resources: Managing employees.
What are the three business sectors?
- Primary Sector: Extracting raw materials (e.g., farming, mining).
- Secondary Sector: Manufacturing and processing (e.g., factories).
- Tertiary Sector: Providing services (e.g., retail, banking, healthcare).
What is the economic importance of business?
- Provides goods and services.
- Creates employment.
- Generates tax revenue.
- Contributes to national and global economies.
What is a Sole Trader?
A business owned and operated by one person.
What are the advantages of a Sole Trader?
- Simple to set up.
- Full control.
What are the disadvantages of a Sole Trader?
- Unlimited liability.
- Difficulty in raising capital.
What is a Partnership?
A business owned by two or more people.
What are the advantages of a Partnership?
- Shared responsibility.
- More capital.
What are the disadvantages of a Partnership?
- Shared profits.
- Disagreements.
What is a Private Limited Company (Ltd)?
A company owned by shareholders, but shares are not sold to the public.
What are the advantages of a Private Limited Company?
- Limited liability.
- Easier to raise capital.
What are the disadvantages of a Private Limited Company?
- More regulation.
- Higher setup costs.
What is a Public Limited Company (PLC)?
A company that can sell shares to the public.
What are the advantages of a Public Limited Company?
- Easy access to capital through the stock market.
What are the disadvantages of a Public Limited Company?
- Greater public scrutiny.
- Costly to establish.
What is a Business Plan?
A document that outlines the goals, strategies, and financial projections for a business.
What are the objectives of a Business Plan?
- Attract investors or secure financing.
- Guide business operations and set goals.
- Analyze the competition and market.
What are the Four P’s of Marketing?
- Product: What is being sold.
- Price: How much the product costs.
- Place: Distribution channels.
- Promotion: Advertising, sales promotions.
What is Market Research?
The process of gathering and analyzing data about consumer needs and preferences.
What are the sources of finance?
- Internal: Retained profits, sale of assets.
- External: Loans, grants, share capital (for companies).
What does an Income Statement show?
A company’s profitability over a period.
What is a Balance Sheet?
Provides a snapshot of a company’s financial position, listing assets, liabilities, and shareholders’ equity.
What is Break-even Analysis?
The point at which total revenue equals total costs.
What is an Entrepreneur?
An individual who identifies business opportunities, takes risks, and organizes resources to start and run a business.
What are the characteristics of successful entrepreneurs?
- Risk-taking.
- Creativity.
- Determination.
- Leadership.
- Problem-solving skills.
What is Consumer Protection?
Laws designed to protect consumers from unfair practices.
What are the consumer rights?
- Right to safety.
- Right to information.
- Right to choice.
- Right to redress.
What is Sustainability in business?
Considering the long-term impact of operations on the environment.
What is Corporate Social Responsibility (CSR)?
Businesses take responsibility for their actions in relation to society and the environment.
What is Business Ethics?
The application of moral principles to business activities.
What are ethical issues in business?
- Fair wages.
- Working conditions.
- Transparency.
- Environmental impact.
- Consumer rights.
Fill in the blank: The process of managing money within a business is called _______.
[Financial Management]
What is Revenue?
The income a business earns from sales.
What are Costs?
The expenses incurred by the business in producing goods or services.
What is Profit?
The difference between revenue and costs.
