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Bio topic 10-12 syllabus > business igcse (all topics) > Flashcards

business igcse (all topics) Flashcards

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1
Q

1.1 what is economic problem (2)

A
  • unlimited wants but limited sources to fulfil this
  • creates scarcity
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2
Q

1.1 what is scarcity (2)

A
  • lack of products services
  • to fulfil needs of population
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3
Q

1.1 factors of production (4)

A
  • land: all natural resources (field, forest, oil, gas, minerals, metals)
  • labor: number of people available to make products
  • capital: finance, machinery and equipment needed to manufacture goods & services
  • enterprise: skill & risk-taking ability of managers and owners of firms
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4
Q

1.1 what is opportunity cost (1)

A

next best alternative given up by choosing another item (ex.: buying car over paying rent, opportunity cost = paying rent & keeping home)

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5
Q

1.1 what is specialisation (1)

A
  • when people and businesses concentrate on what they are best at
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6
Q

1.1 what is division of labor (2)

A
  • when production process is split into different tasks
  • each worker performs one specific task only
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7
Q

1.1 advantages of division of labor (2)

A
  • workers trained in one task and specialise in it -> increases efficiency and output
  • less time wasted moving from one workbench to another
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8
Q

1.1 drawbacks of division of labor (2)

A
  • workers can become bored doing just one job -> efficiency might fall
  • if a worker is absent and no one else can do the job, production might be stopped
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9
Q

1.1 what is the purpose of business activity (1)

A

combine the factors of production to make products which will satisfy peoples wants

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10
Q

1.1 what is added value (1)

A

difference between selling price and cost of bought-in materials

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11
Q

1.1 why is added value important (2)

A
  • helps pay for operating expenses
  • helps make a profit
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12
Q

1.1 how can a business increase added value (2)

A
  • increasing selling price
  • reducing cost of bought in materials
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13
Q

1.2 what is a primary sector (1)

A

extracts natural resources to supply raw materials to other businesses

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14
Q

1.2 what is secondary sector (1)

A

manufactures goods by using raw materials supplied by primary sector

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15
Q

1.2 what is tertiary sector (1)

A

provides services to consumers and other sectors of industry

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16
Q

1.2 what is a mixed economy (1)

A

economy with both a private sector and public sector

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17
Q

1.2 what is private sector (3)

A
  • business owned by private individuals and not government
  • decide on price to charge for goods/services
  • main aim is to profit
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18
Q

1.2 what is public sector (3)

A
  • government of a state own and control business
  • money for these come from taxpayers
  • objective: provide welfare to people in the economy
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19
Q

1.2 characteristics of successful entrepreneurs (4)

A
  • risk taking
  • confident
  • creative
  • innovative
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20
Q

1.3 what is a business plan (1)

A

document containing business objectives & details about finance, operations and owners of business

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21
Q

1.3 importance of entrepreneur creating business plan (2)

A
  • need to produce one to show bank if they want to apply for bank loan
  • forces entrepreneurs to think ahead to try and solve any potential problems
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22
Q

1.3 why government supports new startup firms (3)

A
  • new firms create jobs and reduce unemployment in country
  • increased output -> economy benefits from increased output
  • new firms give consumers in country more choice of goods and services
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23
Q

1.3 how the government supports new firms (2)

A
  • offer training to entrepreneurs who want to develop their skills of running a business
  • may offer grants to businesses so they can afford to open up business
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24
Q

1.3 how to measure size of business (4)

A
  • number of employees
  • value of output
  • value of sales revenue
  • capital employed
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25
Q

1.3 drawbacks of measure methods (4)

A
  • employees: if firm capital intensive, machinery carries out most production, number of employees = inaccurate
  • output: firms may produce few products very valuable per unit = unfair representation of output
  • sales revenue: unfair to compare small shop to luxury shop sales revenue
  • capital: firm may be labor intensive, not much need for capital (machinery) invested
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26
Q

1.3 why owners want to increase business (3)

A
  • increase profits
  • benefit from economies of scale
  • more status & prestige for owners
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27
Q

1.3 how a business can grow (2)

A
  • internal growth: business expands existing operations
  • external growth: business takes over/merges with another company
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28
Q

1.3 horizontal integration def (1)

A

business merges/takes over another business in the same stage of production

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29
Q

1.3 horizontal integration benefits (2)

A
  • less competitors
  • business can now benefit from economies of scale
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30
Q

1.3 horizontal integration drawbacks (2)

A
  • diseconomies of scale
  • communication more challenging as business is larger
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31
Q

1.3 why businesses fail (3)

A
  • lack of management skills: bad decisions on innovating products/locating premises
  • changes in business environment: recessions, covid, inflation
  • liquidity problems: low ratios, not able to pay day to day expenses
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32
Q

1.4 what is unlimited liability (3)

A
  • owners of business can be held responsible for debts of business
  • personal possessions at risk of business can’t pay off debts
  • sole traders and partnerships have unlimited liability
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33
Q

1.4 what is incorporated business (1)

A

business that has separate legal status from owners (LTD, PLCS)

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34
Q

1.4 what is unincorporated business (1)

A

don’t have separate legal status from owners (sole traders, partnerships)

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35
Q

1.4 what is a partnership (1)

A

business in which 2 or more people agree to jointly own a business

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36
Q

1.4 partnership benefits (3)

A
  • more finance can be invested into business from all partners
  • less stress as responsibilities are shared
  • more ideas from partners -> lead to better products/customer service
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37
Q

1.4 partnership drawbacks (3)

A
  • profits have to be shared
  • disagreements can occur, distraction from focusing on quality of products/customer service
  • unlimited liability
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38
Q

1.4 what is a private limited company (LTD) (2)

A
  • business owned by shareholders
  • cannot sell shares to public -> sell them to family and friends
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39
Q

1.4 LTD benefits (3)

A
  • raise more capital from selling shares
  • all owners have limited liability -> less risk
  • can maintain control of business as they approve who they sell shares to
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40
Q

1.4 LTD drawbacks (2)

A
  • cannot sell shares to public, limited ability to raise capital
  • expensive to be an LTD, lots of legacies and paperwork to complete
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41
Q

1.4 what is a public limited company (PLC) (2)

A
  • company owned by shareholders
  • shares can be sold to public on stock exchange
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42
Q

1.4 PLC benefits (2)

A
  • can raise more capital from selling shares to the public
  • all owners have limited liability -> less risk
43
Q

1.4 PLC drawbacks (2)

A
  • risk that original owners may lose control of business when it goes public
  • need to pay shareholders dividends -> less profit for original owners
44
Q

1.4 what is a franchise (2)

A
  • business with strong brand name
  • franchiser (owner) sells rights to use brand name to franchisee
45
Q

1.4 benefits to franchisor (2)

A
  • receives royalties
  • responsibilities of day to day running handed over to franchisee -> less stress
46
Q

1.4 drawbacks to franchisee (2)

A
  • poor management + bad reputation of one branch = risk of ruining entire brand reputation
  • don’t get to keep 100% profit from every branch
47
Q

1.4 what are joint ventures (1)

A

2 or more businesses start a new project together, sharing risks and profit

48
Q

1.4 joint ventures benefits (3)

A
  • businesses share costs of new project
  • risk shared
  • each business may benefit from knowledge/expertise of the other businesses
49
Q

1.4 joint ventures drawbacks (2)

A
  • profits shared
  • disagreements may occur on how to run project, distraction from improving quality/service
50
Q

1.4 what are public corporations (2)

A
  • business owned and controlled by government
  • usually initially owned by private sector and now owned by public sector
51
Q

1.4 public corporations benefits (2)

A

-ensures consumers are not taken advantage of by privately owned monopolies
- important for providing non profitable but important services

52
Q

1.5 what is a business objective (1)

A
  • aim/target business works towards
53
Q

1.5 why are business objectives important (2)

A
  • give workers and managers clear target work -> increased motivation
  • allows business to compare against their performance to judge wether they have been successful or not
54
Q

1.5 types of business objectives (4)

A
  • survival (common in first year/recession/new competitors enter market)
  • profit
  • growth
  • increase market share (value of business sales compared to entire market)
55
Q

1.5 what is a social enterprise (2)

A
  • operated by private individuals
  • have more than just profit objective (helping community/environment)
56
Q

1.5 what are stakeholders (1)

A

person/group who has direct interest in performance and activities of business

57
Q

1.5 what are internal stakeholders (3)

A
  • owner (wants business to grow & gain profit)
  • employees (want fair salary, good working conditions, job satisfactions, job security)
  • managers (want job security and profits)
58
Q

1.5 what are external stakeholders (4)

A
  • customers (want safe & reliable products, high quality, fair price)
  • government (make sure business is abiding to laws, want business success so low employment, earn corporation tax)
  • local community (can get job in business, make sure business doesn’t damage local community)
  • banks (want business to pay back bank loans with interest)
59
Q

1.5 differences in objectives of private sector (1) and public sector enterprises (3)

A
  • private sector = profit
    -provide services to public
  • create employment
  • make profit
60
Q

2.1 why people work (5)

A
  • money: pay necessities & luxuries
  • security: knowing job & pay are safe
  • social need: being part of a group + meeting new people
  • esteem needs: feeling needed/important
  • job satisfaction
61
Q

2.1 benefits of well motivated workforce (5)

A
  • high output per worker: decrease average costs, increase profits & efficiency
  • willingness to accept change
  • willing to communicate effectively with workers
  • decreased labor turnover: lower recruitment & selection costs
  • lower absenteeism: increased output & efficiency
62
Q

2.1 Maslow’s hierarchy of needs (5)

A
  1. self actualisation
  2. esteem needs
  3. social needs
  4. security needs
  5. psychological needs
63
Q

2.1 how Maslow’s hierarchy can be achieved generally (5)

A
  • self actualisation: achieve full potential
  • esteem needs: praising/recognition for doing good
  • social needs: belonging & friendship
  • security needs: protection
  • psychological needs: shelter, water, food, rest
64
Q

2.1 how Maslow’s hierarchy can be achieved in workplace (5)

A
  • self actualisation: promotion
  • esteem needs: praised for work/rewards
  • social needs: staff social events, team bonding, supportive colleagues
  • security needs: job security, safe working environment
  • psychological needs: wages/salary to pay rent & buy food
65
Q

2.1 F.W Taylor’s theory (4)

A
  • how productivity can be increased
  • workers motivated by money
  • broke down jobs into simple processed and set target for employees
  • targets reached = employees paid more money
66
Q

2.1 benefits of F.W Taylor’s theory (1)

A

employees based on output, more motivated by money which makes them more productive and increases efficiency for the business

67
Q

2.1 F.W Taylor’s theory drawbacks (2)

A
  • employees not necessarily only motivated by money -> if business doesn’t provide good working conditions & relationships -> may cause demotivation
  • often difficult to measure output in business
68
Q

2.1 Herzberg sets of needs (2)

A
  • basic needs/hygiene factors
  • motivators (psychological growth)
69
Q

2.1 what are Herzberg hygiene factors (4)

A
  • good working conditions
  • good relationships with supervisor & work colleagues
  • salary/wage
  • job security
70
Q

2.1 what are Herzberg motivators (4)

A
  • recognition
  • achievement
  • promotion
  • the work itself
71
Q

2.1 what are wages (2)

A
  • regular payment paid every week
  • either by time rate (paid by the hour) or piece rate (paid by quantity of products made)
72
Q

2.1 time rate benefits (2)

A
  • easy to calculate by company
  • employees know exactly how much they should be paid
73
Q

2.1 time rate drawbacks (1)

A

more skilled and less skilled workers get paid same amount of money -> demotivation of better skilled workers

74
Q

2.1 piece rate benefits (1)

A

encourages workers to work faster & produce more

75
Q

2.1 piece rate drawbacks (1)

A

workers may focus on producing large amount of products and rush their work, impacting quality of products

76
Q

2.1 what is a salary (2)

A
  • paid monthly
  • amount of money paid per year divided/payed in 12 monthly amounts
77
Q

2.1 salary benefits (2)

A
  • only distributed once a month so less time consuming for HR and finance department
  • employer has money in their account for longer than if paying wages -> improve cashflow
78
Q

2.1 salary drawbacks (2)

A
  • workers may prefer weekly payments
  • no payment for working overtime -> demotivating employees
79
Q

2.1 what is a bonus (1)

A

lump slump paid to workers when they have worked well/reached a certain target

80
Q

2.1 bonus benefits (2)

A
  • motivating for employees
  • recognition for achievements (supports Maslow & herzberg theories)
81
Q

2.1 bonus drawbacks (2)

A
  • can become “expected” which disappoints employees if they do not get one
  • resentment may occur if some employees get bonuses and others don’t
82
Q

2.1 what is commission (2)

A
  • payment relating to number of sales made
  • more sales employee makes = more money employee made
83
Q

2.1 commission benefits (1)

A

motivates employees to sell more products -> increasing sales

84
Q

2.1 commission drawbacks (2)

A
  • other employees working on commission can pressurise customers to purchase products in order to get their commission -> non-returning customers and negative brand image
  • if there is a recession -> sales will be low -> commission hard to achieve
85
Q

2.1 what is profit sharing (1)

A

system where a proportion of the company’s profits is paid out to employees in addition to wages/salaries

86
Q

2.1 non-financial methods of motivation (6)

A
  • fringe benefits
  • job rotation
  • job enrichment
  • team-work
  • training
  • opportunities for promotion
87
Q

2.1 what are non-financial awards (1)

A

focus on increasing job satisfaction

88
Q

2.1 what are fringe benefits (2)

A
  • perks employers give employees
  • non financial rewards
  • ex.: discount, company car, gym membership, free lunch
89
Q

2.1 what is job rotation (1)

A

swapping around and doing different tasks for a limited time and changing around again

90
Q

2.1 job rotation benefits (2)

A
  • more work variety -> workers not bored
  • if people are in it is easy to cover workers as everyone is skilled to cover jobs
91
Q

2.1 job rotation drawbacks (1)

A
  • expensive to train all workers in different tasks
92
Q

2.1 what is job enrichment

A

looking at jobs and adding tasks that require more skill and responsibility

93
Q

2.1 job enrichment benefits (1)

A

workers given more responsibility will make them feel more empowered and trusted which leads to motivation

94
Q

2.1 job enrichment drawbacks (1)

A

employees may be unhappy if they have extra work with no extra pay

95
Q

2.1 what is team-work (1)

A

using groups of workers and allocating specific tasks and responsibilities to them

96
Q

2.1 teamwork benefits (1)

A

better sense of belonging -> increased motivation

97
Q

2.1 teamwork drawbacks (1)

A

clashes and arguments can distract from working and impact quality of work

98
Q

2.1 what is training (1)

A

process of improving a worker’s skills

99
Q

2.1 training advantages (2)

A
  • gain sense of achievement from worker -> increased motivation
  • employees able to take on new responsibilities -> job enrichment/promotion -> increased motivation
100
Q

2.1 training drawbacks (1)

A

expensive

101
Q

2.1 what are opportunities for promotion (1)

A

advancement of employee in organization, higher level in hierarchy

102
Q

2.1 opportunities for promotion benefits (1)

A

recognition, more work/pay.

103
Q

2.1 opportunities for promotion drawbacks (1)

A

conflict may occur if an employee is promoted and another isn’t

104
Q
A

Bio topic 10-12 syllabus (1 decks)

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