Business framework Flashcards
What is a service?
Something intangible.
What is a good?
Something tangible.
What is the VAT on needs?
20%
What is at the primary stage?
Producing the raw materials.
What is at the secondary stage?
Manufacturing the good.
What is at the tertiary stage?
Selling the good.
Why does a business exist?
A business exists to satisfy wants and needs profitably.
What is profit?
Profit = revenue - costs
What is a marketing plan?
A written formal plan/document.
What is a marketing objective?
Where the business wants to be using strategies and methods.
What does SWOT stand for?
S - strengths
W - weaknesses
O - opportunities
T - threats
What is demographics?
Population, characteristics and change
What is the land stage?
Natural resources.
What is the labour stage?
Making the good/service.
What is the capital stage?
Machinery used to produce and distribute.
What are the motives for wanting to become an entrepreneur?
- wanting to set up their own business
- wanting to go into the marketing business
- wanting to make a financial profit
- wanting to make a social profit
- wanting to fill a gap in the market
- legacy
- challenging them self
- following a dream/hobby
What are the characteristics of an entrepreneur?
- risk taker
- ambitious
- confident
- passionate
- committed
- hard working
- resilient
What are the disadvantages of an entrepreneur?
- loneliness and isolation
- can’t blame others
- financial pressure
- hard work
- strain in family and social life
- high stress level
- needs to be able to multi-task
- roller coaster of emotions
what are the rewards for enterprise?
- profits
- self-esteem
- personal development
- sense of control
What is opportunity cost?
The cost of missing out on the next best thing.
What is a stakeholder?
A person who has a certain objective or interest in a business.
What is a shareholder?
Someone who buy a share in a business (only PLC).
What is an internal stakeholder?
People who work for the business and are involved daily.
What is an external stakeholder?
People who aren’t working for the business and aren’t involved day-to-day.
List 6 internal stakeholders;
- customers
- creditors
- owners/shareholders
- managers
- employees
- suppliers
List 7 external stakeholders;
- financial institutions
- trade associations
- competitors
- pressure groups
- society
- the Government
- local resident/community
How do you work out gross profit?
gross profit = sale of price - cost of sales
How do you work out net profit?
net profit = gross profit - overhead
How do you work out retained profit?
profit before tax - dividends
What is revenue?
Money coming into the business
What is companies house?
Where you go to register your business.
