BUSINESS

Question 1

patnership

Answer 1

business owned between 2-20 partners

Question 2

retained profit

Answer 2

profit that is distributed to shareholders as dividends

Question 3

dividends

Answer 3

sum of money paid regularly by a company to its shareholders out of its profits

Question 4

qualitative data

Answer 4

databases on opinions of those being asked

Question 5

marketing mix

Answer 5

price
products
place
promotion

Question 6

backward vertical growth

Answer 6

a business merges / takes over a business THAT SUPPLIES IT with goods/services

Question 7

competitive pricing

Answer 7

prices set based on prices of competitors

Question 8

external growth

Answer 8

growth of business by merger / takeover

Question 9

flat organisational structure

Answer 9

adv : workers communicate with most colleagues - good for generating ideas
Dis: little chance of promotion, manager oversees everything so could be pressured

Question 10

revenue

Answer 10

money received from sales

Question 11

promotional pricing

Answer 11

price reduced to give products a boost

Question 12

penetration pricing

Answer 12

pricing set lower than competitors , usually for new businesses to break into market - short term

Question 13

e commerce

Answer 13

selling electronically

Question 14

owners capital

Answer 14

savings put into business by owners

Question 15

horizontal growth

Answer 15

merger/ takeover where the 2 businesses are involved in similar operation

Question 16

diversification

Answer 16

when a business merges / takes over another business with no connection

Question 17

tall organisational structure

Answer 17

adv - promotions , clear lines of communication

dis - being to controlled by their line management - being top heavy

for large organisations

Question 18

takeover

Answer 18

busienss takes a controlling interest in another business- e.g buying 50% of shares in it

Question 19

logistics

Answer 19

process of organising the transport of goods from seller to buyer

Question 20

liquidity

Answer 20

business pays its short term debts

Question 21

skimming

Answer 21

new product that is more advanced than competitors , so price is set high as consumers are willing to pay

Question 22

procurement

Answer 22

the management of purchasing within a business

Question 23

fringe benefits

Answer 23

additional benefits-
health insurance
childcare
gym membership

Question 24

internal methods of recruitment

Answer 24

notice boards
company website
emails to staff

Question 25

market share

Answer 25

% of total amount of product made in comparison to the market

Question 26

share issue

Answer 26

money raised from investors by selling new shares

Question 27

deed of partnership

Answer 27

document stating who owns there business, how much money each partner invested, and roles

Question 28

trade credit

Answer 28

business buys goods to sell and does not need need to pay supplier for a period of time often 30 days

Question 29

variable cost

Answer 29

costs that change wages materials

Question 30

forward vertical growth

Answer 30

when a business merges / takes over a business THAT IT SUPPLIES goods and services

Question 31

quantitave data

Answer 31

data collected off facts and numbers- easier to analyse than qualitative

Question 32

loan

Answer 32

sum of money borrowed for a stated period at interest

Question 33

net profit

Answer 33

gross profit - expenses

Question 34

economic climate

Answer 34

refers to how well the country is doing in terms of income and employment

Question 35

public limited company

Answer 35

sells its shares to whoever wants to buy

Question 37

flow production / mass production

Answer 37

1 product is made continuesly ad. - large quantities produced for sale dis. - repetitive + large stocks of material have to be brought in

Question 38

total costs

Answer 38

total fixed + totall variable

Question 39

external recruitment methods

Answer 39

websites newspaper social media magazines

Question 40

unlimited liability

Answer 40

business owner is responsible for repaying all business debt

Question 41

fixed costs

Answer 41

costs that stay the same rent tax

Question 42

sale of assets

Answer 42

items sold by the business

Question 43

batch production

Answer 43

1 type of product is made + then production is switched to make a different products e.g = paint / bread adv.. no storage costs goods made to order dis.. repetitive and boring for workers

Question 44

proximity

Answer 44

fancy word for - nearest to’ refers to market , raw materials , labour supplies

Question 45

limited liability

Answer 45

owners only loose the money they originally invested into the business

Question 46

external stakeholders

Answer 46

local community suppliers customers government

Question 47

job production

Answer 47

products made individually adv - high quality so can charge high price dis - production slow + high cost production

Question 48

expenses

Answer 48

wages mortgage insurance electricity

Question 49

internal stakeholders

Answer 49

people who work in the business

Question 50

assets

Answer 50

items owned by business vehicles buildings stock even non physical things like a .. good reputation

Question 51

merger

Answer 51

2+ businesses agree to join to become 1 business

Question 52

private limited company ltd

Answer 52

usually for a smaller businesss , it can sell shares to invited people only.

Question 53

quality control methods

Answer 53

customer questionnaires take random samples of products in middle of production and end

Question 54

supply chain

Answer 54

raw materials sourcing - production - storage- distribution- sales