Business and People Flashcards
1
Q
why have a business?
A
- own boss
- choose your staff
- make more money
- own decisions
- holiday when you want
2
Q
what is a sole trader?
A
anyone who owns/runs their own business
3
Q
what are the advantages of being a sole trader?
A
- easy to set up
- own boss
- you decide what happens to profit
4
Q
what are the disadvantages of being a sole trader?
A
- long hours
- unlimited liability
5
Q
what is unlimited liability?
A
owners are personally liable for all debts
6
Q
what is limited liability?
A
shareholders are liable for the business debts depending on how much they invested
7
Q
what is a partnership?
A
where two or more people own or run a business
8
Q
what are the advantages of being in a partnership?
A
- less stress
- shared debt
- more free time
- more jobs taken on
9
Q
what are the disadvantages of being in a partnership?
A
- fall out
- shared money
- disagree on ideas
10
Q
what is a deed of partnership?
A
lays out rules for running the partnership
11
Q
what is a sleeping partner?
A
someone who invests money but takes no part in the day to day running
12
Q
what is a private limited company?
A
ltd after its name, can only be sold if all the shareholders agree, shareholders are often family and friends
13
Q
what are the advantages of private limited companies?
A
- family is reliable
- limited liability
- continuity if someone leaves
- keep control of business
14
Q
what are the disadvantages of a private limited company?
A
- more complicated to set up
- loss of individual control
- business accounts much be public
15
Q
what is a public limited company?
A
plc after its name, shares in the company are sold on the stock exchange, firms become plc when they want to expand
16
Q
what are the advantages of a public limited company?
A
- help company expand
- increase publicity
- more shareholders
17
Q
what are the disadvantages of a public limited company?
A
- people with shares can cause problems
- chance of takeover
- disagreements
18
Q
what is a multinational cooperation?
A
a company with factors all over the world
19
Q
what are the advantages of a multinational cooperation?
A
- benefit from economies of scale
- purchasing economies
- different Expertise
- decrease wages and factory costs
20
Q
what are the disadvantages of a multinational cooperation?
A
- money usually kept in the host country
- bad reputation from ‘cutting corners’ like avoiding tax
21
Q
what is a dividend?
A
sum of money payed regularly to the shareholders out of its profits
22
Q
what is a social enterprise?
A
-i.e Oskars, employ people in the local area that need a job, train employees and pay them, sell things for cheap prices
23
Q
what is a franchise?
A
the right to sell another firms products, use another business name, you have to apply to use the brand name
24
Q
what are the advantages of being a franchise?
A
- less risk of failing
- marketing and promotions are often done by the franchising
- help is given with staff
- help with accounting and managing
25
what are the disadvantages of a franchise?
- only sell the products on the franchise
- freedom is limited
- little control
26
what is royalty payment?
a payment given from the franchisee to another that owns a particular asset
27
what is the public sector/corporations?
business and organisations controlled by the government i.e.BBC, NHS and local councils
28
what is the private sector?
usually want to make a profit, usually private owners i.e sole traders, partnerships, franchise, private limited companies, social enterprise
29
what are stakeholders?
anyone with an interest in the business i.e CCs shareholders are parents,techers, government, students, universities
30
what are conflicting objectives in relation to stakeholders?
-sometimes stakeholders have conflicting objectives i.e. shareholder vs customers + managers vs employees= wanting to cut costs but employees wanting a higher wage
31
what is the primary sector?
raw materials i.e. farming, mining diamonds
32
what is the secondary sector?
manufacturing i.e. cement producer, textile making
33
what is the tertiary sector?
servies based i.e. tour bus company, hair dressers, banking, restaurant
34
how have the 3 sectors changed?
- people have more money to spend on services
- higher population
- technology taking over manufacturing
35
how can a business internally grow?
- open more shops
| - new factories
36
why do businesses fail?
- lazy staff
- bad location
- out-dated
- bad reputation
- bad management
37
what are the factors to consider when locating restaurants?
- how easy it would be to get staff in the area
- rent prices
- competition
- close to suppliers
38
what are the 5 main business objectives?
- profit
- increase market share
- survival
- growth
- service
39
what is satisfying?
when a business aims to make just enough profit to aim for they're future plans
40
what are the 7 types of employment?
- full time
- part time
- voluntary
- self-employment
- seasonal
- fixed contract
- job share
41
what is an example of full time work and what are the benefits and costs?
example- head teacher
benefits- high wages
costs- long hours
42
what is an example of voluntary work and what are the benefits and costs?
example- sports leader
benefits- good on CV, experience
costs- don't get paid
43
what is an example of part time work and what are the benefits and costs?
example- waiter
benefits- vary work/life balance
costs- lower wages compared to full time work
44
what is an example of self employment work and what are the benefits and costs?
example- builder, hair dresser
benefits- you get all the money
costs- find own customers
45
what is an example of seasonal work and what are the benefits and costs?
example- air hostess
benefits- get money for short amount of time
costs- only work short amounts of time
46
what is an example of fixed contract work and what are the benefits and costs?
example- teacher (maternity leave)
benefits- you can move more money
costs- you're not given proper job only temporary
47
what is an example of job share work and what are the benefits and costs?
example- shop workers, hospitality
benefits- not 100% committed all the time
costs- share money so get less
48
what is insolvency?
when a business has liabilities (debts) way bigger then its assets. it can no longer pay its debts
49
what is corporation tax?
the tax a company pays on its profits (sole traders and partnerships pay income tax). businesses often insolvent due to a tax bill
50
what is vertical integration?
merging with a business in fount/ behind you in the production process. i.e a bakery and a delivery company
51
what is horizontal integration?
merging with a business at the same level of production. i.e. two bakeries
52
what Is the recruitment process?
job analysis, vacancy, job description, person spec., advertising, application/CV, interviewing, appointment
53
what is a job description?
a formal account of an employees responsibilities
54
what is internal recruitment?
when a business looks to fill a vacancy from within the business
55
where can you advertise job?
```
paper
shop window
online
universities
business website
```
56
what is shortlisting?
only inviting 3-5 people for an interview because you're not wasting your time on people you know that you don't want as it would cost a lot of money
57
what is a trade union?
gives employees legal advice, can talk to management for them, negotiate with management
58
what can trade unions do to protest?
- stikes; withdrawing labour
- go slow; working to minimum speed
- overtime ban; refusing to do additional hours
- working to rule; only do exactly whats on your job description
59
what is redundancy?
when you job no longer exists
60
what is in a good contract?
- rate of pay
- hours
- job description
- duties
- contract type
61
what are the working time regulations?
- only work average 48 hours a week
- must have day off each week
- may only work max 12 hours a day
- under 18 cannot work night shifts
62
what are some financial motivation? (8)
```
pay- salary or paid per hour
bonus- money for achieving target
commission- % of what you sell
fringe benefit- benefits: pensions, free uniform, healthcare, parking
discount- money off buying in shop
profit sharing- % of profit shared out
overtime- chance to earn more per hour
piece rate- paid per product made
```
63
what are some non-financial motivation? (6)
praise- showing gratitude and thanks
recognition- giving rewards and prises
fear- warning of consequence
job rotation- swapping peoples jobs and roles
good physical environment- facilities you need
job enlargement- giving more responsibility and work
64
what is mellows hierarchy of needs?
BSBES= big scared bears eat salmons
| basic, safety, belonging, esteem, self-actualisation
65
what is an autocratic leader?
individual control over all decisions in a business
66
what is a democratic leader?
shared leadership with different members of the group contributing
67
what is an organisation chart?
-diagrams that show the internal structure of a business
68
what is chain of command?
the number of levels in the business
69
what is span of control?
the number of popped under you immediate control
70
what are line managers?
responsible for overseeing the work of other staff
71
what are subordinates?
report to other staff higher up in the hierarchy
72
what is authority?
refers to power managers have
73
what is delegation?
when managers pass authority to subordinates
74
what is empowerment?
sees managers levels within an organisation
75
what is a hierarchy?
refers to management levels within an organisation ( steep or flat)
76
what are centralised organisations?
the decisions are made by senior managers and then passed down the hierarchy i.e. tesco
77
what are decentralised organisations?
delegate authority down the chain of command
78
what are the 4 methods of promotions?
points of sale-having products very visible in the shop displays i.e. on the till
merchandising- having attractive displays
added value- making the product seem more valuable
loss leader- selling something at a discount or loss
