Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business Studies EDEXCEL IGSCE > Business Activity and influences on businesses :Unit 2 -5 > Flashcards

Business Activity and influences on businesses :Unit 2 -5 Flashcards

1
Q
  1. What are objectives for a business?
A
  • goals or targets set by a business.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  1. Who are executives?
A
  • managers in an organization who help make important decisions.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
  1. What do you mean by diversify?
A

Diversify is when a business, company, or country diversifies, it increases the range of goods and services it produces.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
  1. What are the 4 reasons businesses need to have objectives?
A
  • Employees need something to work towards.
  • Owners might need motivation to keep the business going
  • Objectives help decide where to take a business.
  • It is easier to assess the performance of a business if objectives are set.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
  1. What are the 2 types of business objectives?
A
  • Financial objectives.
  • Non- financial objectives.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  1. What are the 5 financial objectives?
A
  • Survival
  • Profit
  • Sales
  • Increase market share
  • Financial security
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

6.5 What is profit maximization?
profit satisficing?

A
  • Profit maximization is making as much profit as possible in a given time period.
  • Profit satisficing is making enough profit to satisfy the needs of the business owners.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  1. What are the 4 non-financial objectives?
A
  • Social objectives
  • Personal satisfaction
  • Challenge
    -Independence and control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q
  1. Name the 5 reasons objectives change as businesses evolve.
A

-Market conditions
- Technology
- Performance
- Legislation
- Internal reasons

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q
  1. What is are dividends?
A
  • Share of profit paid to shareholders in a company.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. What are a large business?
    - Small businesses?
A
  • A large business is a business that employs more than 250 people.
    A small business is a business that employs fewer than 50 people
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. Who is an innovator?
A
  • Someone who introduces changes and new ideas.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  1. What is labor?
A
  • People employed in a business/ used in production.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
  1. What is unincorporated business?
A

_ business where there is no legal difference between the owner and the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. What is incorporated business?
A
  • Incorporated business that has a separate legal identity from that of it owners.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. Who is sole trader?
A
  • Is a business owned by a single person.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q
  1. What is unlimited liability? limited liability?
A

Unlimited liability- is when the owner of a business is personally liable for all the business debts
Limited liability - is when a business owner is only liable for the original amount of money invested in the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q
  1. What are the 6 advantages of a sole trader?
A
  • The owner keeps all the profit
    -They are independent - the owner has complete control.
  • It is simple to set up with no legal requirements.
  • Flexibility - for example can adapt to change quickly.
    -Can offer a personal service because they are small.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q
  1. What are the 6 disadvantages of a sole trader?
A
  • Have unlimited liability
  • May struggle to raise finance.
  • Independence may be too much of a responsibility.
  • Long hours and very hard work.
  • Usually too small to exploit economies of scale.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q
  1. What is partnership?
A
  • Partnership is a business owned by between 2 - 20 people
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q
  1. What is a deed of partnership?
A
  • binding legal document that states the formal rights of partners.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q
  1. What are the 5 advantages of partnership?
A
  • Easy to set up and run - no legal formalities
  • Partners can specialize in their area of expertise.
  • The job of running a business is shared.
  • More capital can be raised with more owners.
  • Financial information is not published.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q
  1. What are the 5 disadvantages of partnership?
A
  • Partners have unlimited liability.
  • Profit has to be shared.
  • Partners may disagree and fall out.
  • Any partners’ decision is legally binding on all.
  • Partnerships still tend to be small.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q
  1. What is a limited partnership?
A
  • Limited partnership is a partnership where partners contribute capital and enjoy a share of the profit but do not take part in the running of the business.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
24. What are audits?
official examination of a company's financial records in order to check they are correct.
26
25. What is franchise?
- Structure in which a business(the franchisor) allows another operator (the franchisee) to trade under their name.
27
26. What is merchandise?
- Goods that are being sold.
28
27. What are the 4 advantages to franchisee of a franchise?
- Less risk - tried and tested idea - Back up support is given - Set up costs are predictable - National marketing may be organized.
29
27. What are the 4 disadvantages to franchisee of a franchise?
- Profit is shared with the franchisor. - Strict contracts have to be signed. - Lack of independence - strict operating rules apply. - Can be an expensive way to start a business.
30
27. What are the 4 advantages to franchisor of a franchise?
- Fast method of growth. - Cheaper method of growth. - Franchisees take some of the risk - Franchisees more motivated than employees.
31
27. What are the 4 disadvantages to franchisors of a franchise?
- Potential profit is shared with franchisee. - Poor franchisees may damage brand's reputation. - Franchisees may get merchandise from elsewhere. - cost of support for franchisees may be high.
32
28. What is social enterprise?
Social enterprise is a business that aims to improve human or environmental well- being, charities for example.
33
29. What are the 5 types of social enterprises?
- cooperatives - consumer cooperative - retail cooperative - worker cooperative - charities
34
30. What is a cooperative?
A company or organization in which all the people working there own an equal share of it.
35
31. What is a consumer cooperative?
- a cooperative that is owned by its customers.
36
32. What is a retail cooperative?
- cooperative of retail members, who often work together to assert their purchasing power.
37
33. What is worker cooperative?
- a cooperative that is owned by its employees.
38
34. What are charities?
- organizations that give money, goods, or help to people who are sick or in need.
39
35. What is a limited company? What are the two type of limited liability?
- Limited company is a business organization that have a separate legal identity from that of their owners
40
36. Who is entrepreneur?
Entrepreneur is an individual who has the ability to combine land, labour and capital to turn a business idea into reality
41
41. What is the certificate of incorporation?
- document needed before a new company can start doing business.
42
42. What is a memorandum of association?
-it sets out the constitution and gives details about the company.
43
42. What is a private limited company?
A small to medium-sized firm that is usually family-owned which has limited liability but cannot issue shares to the public (Stock market).
44
43. What are stock market?
market for shares in PLCS.
45
44. What are the 4 features of private limited companies?
- name ends in Limited or Ltd. - Shares can only be transferred "privately". - they are often family businesses owned. - The directors of these firms tend to be shareholders and are involved in the running of the business.
46
45. What are the 5 advantages of private limited companies?
- Shares have limited liability. - More capital can be raised. - control cannot be lost to outsiders. - Business continues if a shareholder dies. - Has more status.
47
46. What are the 5 disadvantages of private limited companies?
- Financial information has to be made public. - costs money and takes time to set up. - Profits are shared between more members. - Takes time to transfer shares to the new owner. - Cannot raise huge amounts of money like PLCs.
48
47. What is a public limited company
- a limited company whose shares are freely sold and traded.
49
48. What are the 6 advantages of public limited company?
- Large amounts of capital can be raised. - Shareholders have limited liability. - PLCs can exploit economies of scale. - May be able to dominate the market. - Shares can be bought and sold very easily. - May have a very high profile in the media.
50
49. What are the 6 disadvantages of public limited company?
- setting up costs can be very expensive. - outsiders can take control by buying shares. - More financial information has to be made public. - Maybe more remote from customers. - More regulatory control owing to Company Acts. - managers may take control rather than owners.
51
50. What is a multinational company?
- large business with significant production or service operation in at least two different countries.
52
51. What are the 6 key features of a multinational?
53
52. What is a public corporation?
- business organizations owned and controlled by the state/ government.
54
53. What are the 6 features of a public corporation?
- State-owned. - Created by law. - Incorporation. - state-funded. - Provide public services. - Public accountability.
55
54. What is portfolio?
- collection of business interests or products.
56
55. What is infrastructure?
infrastructures are basic systems and structures that a country/organization needs in order to work properly.
57
56. What are the 5 reasons for public ownership of businesses?
- Avoid wasteful duplication. - Maintain control of strategic industries. - Save jobs. - fill the gaps left by the private sector. - Serve unprofitable regions.
58
57. What is natural monopoly?
- market where it is more efficient to have just one organization meeting the total market demand.
59
58. What are the 4 reasons against public ownership of business?
- Cost to government. - Inefficiency. - Political interference. - Difficult to control.
60
59. What is subsidize?
- paying part of the costs (often by the government in business)
61
60. What is privatization?
privatization of public sector resources to private sector(business)
62
61. What are the 4 ways of privatization?
- Sale of public corporations. - Deregulation. - Contracting out. - The sale of land and property,
63
62. Why does privatization take place? (4)
- To generate income. - To reduce inefficiencies in the public sector. - As a result of deregulation. - To reduce political interference.

Business Studies EDEXCEL IGSCE (13 decks)

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