Business Activity, Marketing And Finance Flashcards
What is the legal document that partnerships have to sign?
The deed of partnership
What does the deed of partnership outline?
It states roles and what % of profit each partner will get.
What is a stakeholder?
A party that takes in interest in the business and can either affect or be affected by it.
Who are internal stakeholders?
Those within the business e.g suppliers,employees
Who are external stakeholders?
Those outside the business e.g customers and competitors
What is a shareholder?
A person who owns at least one share of the company
What is a business aim?
A general goal of a business
E.g to grow
What is a business objective?
A specific goal e.g To increase profit by 20% in the next 2 years
What is a sole trader?
A business owned by ONLY one person,they may have staff working for them.
UNLIMITED LIABILITY
What is a business?
An economic activity that involves exchange,sale or production of goods and services.
What is the purpose of a business?
To make profit and satisfy the needs of customers
What are the characteristics/skills of an entrepreneur?
Risk-taking
Determination
Confidence
Creativity
What is organic growth?
The growth of a business through internal processes,relying on its own resources.
What is trade credit?
allows a business to obtain raw materials and stock but pay for them at a later date (short term)
Formula for net profit
Revenue-total costs
Gross profit calculation
Revenue-variable costs
Average rate of return formula
Average annual profit/ cost of investment * 100
What’s is cost-plus pricing
When a business sets the price of the product based on the costs to produce it
An additional percentage is added on top to make profit
What are disadvantages of private limited companies? (LTDs)
Expensive to set up
Paying corporation tax
Must publish their accounts,competitors will know their profits
There are limited shares friends and family are willing to buy
What are advantages of limited companies?
Limited liability( the business is a separate entity to the owner)
Banks are more willing to lend to limited companies than soletraders
What are disadvantages of plcs?
Expensive to set up
Competitors know their profit
How many partners can be in a partnership?
2-20
The 4ps of the marketing mix?
Product
Price
Place
ProMotion
What are some ways to segment your market?
Gender
Lifestyle
Income
Age
Location
What are the pricing methods?
Cost-plus
Pénétration
Skimming
Competitors
Promotional
What does r and d stand for
?
Research and design
