Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

my flashcards<3 > business- activity > Flashcards

business- activity Flashcards

1
Q

what’s a business?

A

organisation that produces goods/ supplies service and sells it for a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what’s a dividend?

A

payment of limited companies sharing their profits with shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what’s a sole trader?

A

business owned by 1 person
they keep all the profits
e.g hairdresser

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what’s a shareholder?

A

investor in a company that gets dividend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what’s a partnership?

A

business owned by 2-20 people
all the profits and debts are shared
e.g gray partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what does the term float on the stock market mean?

A

selling shares on the stock market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are costs?

A

money paid out of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is a business plan?

A

document outlining what a business is about with sections like marketing and finance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is a silent partner?

A

person that buys a share or invests in a company but doesn’t have a say in the decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is a public limited company?

A

company owned by shareholders
shares are openly traded on the stock exchange and can be bought by the public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is capital?

A

money that is invested in the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is revenue?

A

income of the business

quantity X price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is limited liability?

A

when the company is bankrupt but the shareholders possessions are not at risk for the outstanding debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is unlimited liability?

A

when the business is bankrupt and the owners possessions are at risk for outstanding debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what does the term entrepreneur mean?

A

someone who takes a calculated risk with their time and money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is an aim?

A

states overall purpose for the business and the long term goal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is an objective?

A

specific and measurable targets to meet the aim of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is a good and service?

A

goods- actual objects

service- activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are needs and wants

A

needs- goods and services we need to consume to live

wants- goods and services we don’t have to consume to survive

20
Q

2 reasons for starting a business

A

Making a profit

Being your own boss

21
Q

3 characteristics

A

Confident, Risk-taker, Passion

22
Q

What’s the point of a business plan?

A

helps test financial viability idea and if it has a level of profitability and doesn’t run out of cash

23
Q

+ and - of a business plan

A

+ clarifies vision and decide whether or not to go on with the idea
+estimate start up costs and how much is needed to invest in finance

-time consuming = not guaranteed
-if competitor opens up things change and sales go down

24
Q

why is business ownership important?

A

Shows who keeps all the profits

Helps decision making + nulls arguements

25
+ and - of sole trader
+ easy to run and set up +get all profits +decisions made quickly as you are the owner +loyal customers -unlimited liability -heavy workload= time consuming working long hours -difficult to raise finance
26
Why become a partnership?
covers more customer base more finance more set of skills
27
+ and - of a partnership
+ jobs can be shared= like marketing and finance so less stress +simple to form a business= quick to move forwards + more skills and knowledge= solve problems faster=growth of business - unlimited liability= less risk taken= won't invest in new products -decisions take longer= arguments -profits shared
28
What's the purpose of the deed of partnership?
legal document stating how profits and losses are shared and the rules to the partnership - costs time and money to create + less arguments as they can refer back to the deed of partnership
29
+ and - of LTDs
+ limited liability +easier to sell shares + stable form of structure= company still exists even if the shareholders change -shareholders have to agree on how the profits are shared - more administrative costs than setting up as a sole trader/partnership -less privacy = not as much as plc
30
+ and - of PLCs
+limited liability +increased capital as public can buy shares +operating in a large scale means lower costs per unit and larger profit margin -many laws and regulations slowing down decision making -accounts are made public so bad reputation=decrease in sales -original owner may loose control
31
what is an aim and objective?
aim= overall purpose for the business and the long term goal objective= specific and measurable targets to help meet the aim
32
State 3 objectives
survival growth profit maximisation
33
what is the purpose for setting objectives?
focus= for employees to increase efficiency direction= to decide what the business should do like, if they should expanding or not
34
What is the role of objectives in running a business?
Level of competition Size of business
35
state why business objectives change
internal reasons = business achieved one so needs to set another one external reasons= a new competitor joined the market
36
What is purchasing economies of scale?
when large amounts of material is bought in large amounts so the unit cost goes down as a result
37
What is risk bearing economies of scale?
larger portfolio of products so they can invest and also develop more products
38
Internal/ Organic growth ?
expands premises takes on new workers makes and sells products (and never take over other companies)
39
Merger + and -
+ less competition= they merged with the competition= more sales and more market share +benefit from purchasing economies of scale they buy in large amounts= unit cost goes down= customers get it for cheaper -culture clash= businesses will be used to doing things differently= slows down decision making -redundancies occur= motivation of employees decrease
40
Horizontal Integration + and -
+ less competition= they merged with the competition= more sales and more market share +benefit from purchasing economies of scale they buy in large amounts= unit cost goes down= customers get it for cheaper -culture clash= businesses will be used to doing things differently= slows down decision making -redundancies occur= motivation of employees decrease -expensive(buying another competitor)
41
Vertical integration + and -
+ cheaper costs as the company is their own supplier +more control on supply -culture clash= businesses will be used to doing things differently= slows down decision making -expensive(buying another competitor) -lack of experience
42
What is backwards and forwards Vertical Integration
Backwards- firm buys a business further back of the chain of production Forwards- firm buys a business further forward of the chain of production
43
Conglomerate Integration?
firm takes over an unrelated business
44
Conglomerate Integration + and -
+ benefit from risk bearing economies of scale= if one product makes a loss there are others making profits +bigger reputation as the business is in multiple markets -culture clash= businesses will be used to doing things differently= slows down decision making -expensive(buying another company) -lack of experience
45
2 factors that affect business growth
Size of business Financial position of the business

my flashcards<3 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions