Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Bus Man > Business In Contemporary Society > Flashcards

Business In Contemporary Society Flashcards

0
Q

Sectors of Business Activity

A

Primary
Secondary
Tertiary
Quaternary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Factors of Production

A

Land
Labour
Capital
Enterprise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Primary sector

A

Extraction of raw materials and natural resources e.g.fishing, mining, oil/gas extraction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Secondary sector

A

Manufacturing and construction e.g. Oil refinery, ship building

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Tertiary sector

A

Services provided e.g. Retailing, nursing, selling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Quaternary sector

A

Information and environmental technology e.g.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Private sector organisations

A

Are owned by private individuals with the prime objective of making a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A Sole trader is:

A

A business owned and controlled by one person e.g. Newsagents, hairdresser

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Advantages of a sole trader include:

A 
Simple to set up.
Owner has complete control of decisions.
Owner keeps all profits.
Owner chooses work hours/holidays
More personal service offered to customers
No legal formalities to set up business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Disadvantages of a sole trader:

A

Sole trader has Unlimited Liability.
Borrowing from banks is more difficult.
Owner has no one to share workload with.
Taking holidays/falling ill will effect business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Unlimited liability:

A

The owners are personally responsible for debts of the business. This may result in the owner losing their car/house/possessions or becoming bankrupt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Objectives of a sole trader:

A

Survival
Good image in community
Maximise profits
Improve owner’s personal status

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A Partnership is:

A

A business that is owned and controlled by 2-20 people (except for solicitor/accountant firms). They should have a Legal Agreement stating how profits are to be shared etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Advantages of a Partnership

A

Partners can specialise and bring expertise.
Partners can share responsibilities.
More money can be invested as there is more owners.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Disadvantages of a Partnership

A

The partners have unlimited liability.
Profits have to be shared.
Partners may disagree.
If a partner leaves a new agreement must be set up which can upset running of business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Objectives of a Partnership include:

A

Survival
Maximise profits
Improve status of partners
Good image in community

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

(Sole Trader) Finance raised from:

A 
Owner's savings, Retained profits,
Borrowing from friends & family,
Bank loan/overdraft,
Trade credit, Redundancy package
Debt factoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

(Partnership) Finance raised from:

A 
Partners' savings/profits
New partners, Redundancy payments
Bank loan/overdraft 
Government grant
Trade credit
Debt factoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A Private Limited Company (Ltd) is:

A

A company whose shares are owned privately with friends or family. Owned by shareholders and run by a board of directors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Advantages of Ltd

A

Shareholders have limited liability (only lose amount invested)
Control of company is not lost to outsiders
Mores finance can be raised from lenders and shareholders
Expertise/experience from shareholders & directors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Disadvantages of LTD

A

Profit shared between more people.
Shares cannot be sold to public.
Abide to Companies Act.
Annual Accounts to Companies House in Edinburgh

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

(LTD) Finance is from:

A 
Company profits
New shareholders: selling shares to family & friends
Bank loan/overdraft
Government grant
Trade credit
Debt factoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Objectives of a LTD:

A

Maximise profits
Growth
Strong status
Highest possible sales revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A Public Limited Company (PLC) is:

A

A company whose shares are available for purchase by the public on the Stock Market. Owned by shareholders, controlled by Board of Directors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Private sector organisations include:

A

Sole Trader
Partnership
LTD
PLC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Advantages of a PLC

A

Large amounts of finance can be raised.
Often dominate markets.
Easy to borrow money from lenders because of large size.
Shareholders have limited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Disadvantages of PLC

A

Set-up costs can be high.
Must abide by Companies Act.
No control over who buys shares.
Must publish Annual Accounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Objectives of a PLC

A 
Maximise profits
Expand output
Growth
Higher sales revenue
Dominate market
Strong image
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

(PLC) Finance from:

A 
Company profits
Selling shares to general public via stock market
Bank loan/overdraft
Issue debentures
Government grants
Trade credit
Debt factoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

A multinational is:

A

A PLC which has its headquarters in one country but its manufacturing plants in more than one country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Being a multinational allows a company to:

A

Take advantage of economies of scale.
Avoid restrictions no. of products imported.
Avoid restricting legislation in home country.
Receive tax advantages & grants from other governments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

MNCs have developed because:

A

See notebook

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

MNCs support the UK economy through:

A

Providing jobs which reduces unemployment
Bringing in new expertise & new technology
Bringing in new ideas (successful work practices from Far East)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Drawbacks of multinationals operating in an economy

A

They are in a strong bargaining position & can influence government policies,
Different work practices can lead to disputes,
They may export their profits (go back to home country)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Financial economies of scale

A

Obtaining loans can often be easier because of their size as MNCs will own assets worth a considerable amount of money which can be used as a collateral/security for a loan. They are also able to obtain better interest rate margins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Non-profit making organisations

A

Charities

Voluntary organisations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Purchasing economies of scale

A

Bulk-buying discounts, reduced costs for retailer/business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Charities are:

A

Exempt from paying some taxes.
Set up as trusts with no individual owner.
Control and management by Board of Trustees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Marketing economies of scale

A

Being a large organisation usually means that you will be able to strike better rates for advertising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Objectives of charities

A

Provide a service
Relieve poverty
Fund research

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Voluntary organisations

A

Are run and staffed by volunteers.
E.g. Youth groups, scouts
Bring together people with similar interests.
Run by a committee of elected volunteers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

(Charities) Finance from:

A 
Donations from public/businesses
Government/lottery grants
Profits from own shops
Sale of goods through mail order/internet
Fundraising
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

(Voluntary organisations) Finance from:

A

Lottery/Local authorities/sports council grants

Subscription fees to become a member/use facilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Publicly-funded organisations are:

A

Owned by the taxpayer and controlled by local/central government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Publicly-funded organisations include:

A

Local government organisations
Central government organisations
Public corporations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Local government organisations provide:

A

A range of services including local education, recreation, housing and refuse collection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Local government organisations’ objectives include:

A

Meet local needs
Provide a wide range of services
Make cost savings
Stick to agreed budgets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

(Local gov. organisations) Finance from:

A

Central government
Business rates
Council tax
Charge for services - leisure centres, parking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Central government organisations provide:

A

Important national services by government departments such as the Treasury, Defence, Health and Transport

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Central government organisations’ objectives include:

A

Provide a service
Improve society
Make effective use of funds and taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

(Central gov. organisations) Finance from:

A

Mainly Taxation

Central government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Public corporations are:

A

Companies that are owned by central government e.g. BBC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Advantages of Public Corporations

A

Little competition
Provides service to all consumers
Provides service which may be unprofitable if provided in private sector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Objectives of public corporations include:

A

Provide a quality service
Make best use of funds
Be better than rivals
Serve the public interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

(Public corporations) Finance from:

A

Government grants
Raise finance from public - BBC charges for TV licence and products
Merchandise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Franchises are…

A

Business arrangements where one organisation pays for the right to run under the trading name of another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Franchisee

A

The person or firm who runs and owns the business. Buys into the business. Buys the rights to trade as the franchising business in a way agreed with franchiser.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

A stakeholder is:

A

A person, organisation or group that has an interest in the success of an organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Franchiser

A

The firm that owns the names

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Internal stakeholders

A

Owners, shareholders, managers, employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Benefits to the franchiser

A

See notebook

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

External stakeholders

A

Customers, banks, suppliers, local community, central government, local government, charities, tax payers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Disadvantages to the franchiser

A

The franchiser’s reputation depends in how good the franchisees are. Any bad publicity about a product or branch will affect all the branches

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Interest of owners

A

Want firm to be profitable to provide them with a good financial return and improved value

64
Q

Advantages for the franchisee

A

See notebook

65
Q

Influence of owners

A

They make all the decisions on behalf of the business

66
Q

Disadvantages for the franchisee

A

See notebook

67
Q

Interest of shareholders

A

They want the company to be profitable to provide them with good dividends and improved share value

68
Q

Influence of shareholders

A

They can exert influence on the company by voting for particular directors and approving dividend payments at the AGM

69
Q

Interests of managers

A

They receive salaries and perhaps bonuses so they will want the business to be successful

70
Q

Influence of managers

A

They make important decisions regarding hiring staff, product portfolio which may or may not be successful

71
Q

Interest of employees

A

They want good salaries/wages, job satisfaction, good working conditions and job security

72
Q

Influence of employees

A

They can exert influence by the standard of their work. They can also take part in various forms of industrial action

73
Q

Interest of customers

A

They want best quality products or services from the business at the lowest prices

74
Q

Influence of customers

A

Can choose to buy or not buy an organisation’s products or services. This influences the products/services an organisation makes/provides. They may also recommend the organisation to family/friends

75
Q

Interest of banks

A

Want to ensure that a business applying for a loan or with an existing loan has sufficient funds to make agreed repayments

76
Q

Influence of banks

A

They can exert influence by granting or withholding loans, setting loan rates, or requesting repayments of loans if an organisation’s ability to make repayment is in doubt

77
Q

Interest of suppliers

A

Wants a business to be a success to ensure repeat custom as they depend on their custom for survival

78
Q

Influence of supplier

A

Can offer trade credit (39/60/90 days), changing prices, offering discounts, reliability - quality/delivery time

79
Q

Internal stakeholders

A

Owners, shareholders, managers, employees

80
Q

External stakeholders

A

Customers, banks, suppliers, local community, central government, local government, charities, tax payers

81
Q

Interest of owners

A

Want firm to be profitable to provide them with a good financial return and improved value

82
Q

Influence of owners

A

They make all the decisions on behalf of the business

83
Q

Interest of shareholders

A

They want the company to be profitable to provide them with good dividends and improved share value

84
Q

Influence of shareholders

A

They can exert influence on the company by voting for particular directors and approving dividend payments at the AGM

85
Q

Interests of managers

A

They receive salaries and perhaps bonuses so they will want the business to be successful

86
Q

Influence of managers

A

They make important decisions regarding hiring staff, product portfolio which may or may not be successful

87
Q

Interest of employees

A

They want good salaries/wages, job satisfaction, good working conditions and job security

88
Q

Influence of employees

A

They can exert influence by the standard of their work. They can also take part in various forms of industrial action

89
Q

Interest of customers

A

They want best quality products or services from the business at the lowest prices

90
Q

Influence of customers

A

Can choose to buy or not buy an organisation’s products or services. This influences the products/services an organisation makes/provides. They may also recommend the organisation to family/friends

91
Q

Interest of banks

A

Want to ensure that a business applying for a loan or with an existing loan has sufficient funds to make agreed repayments

92
Q

Influence of banks

A

They can exert influence by granting or withholding loans, setting loan rates, or requesting repayments of loans if an organisation’s ability to make repayment is in doubt

93
Q

Interest of suppliers

A

Wants a business to be a success to ensure repeat custom as they depend on their custom for survival

94
Q

Influence of supplier

A

Can offer trade credit (39/60/90 days), changing prices, offering discounts, reliability - quality/delivery time

95
Q

Interest of local community

A

Business organisations produce employment therefore generating wealth for an area, communities also have an interest that their environment is not harmed by noise or pollution

96
Q

Influence of local community

A

They can exert influence by petitioning businesses, involving press in matters and making complaints to their local authority

97
Q

Interest of central government

A

Want businesses to be successful as they provide jobs, generate wealth & provide government with finance through taxation (income tax from working individuals & corporation tax from businesses)

98
Q

Influence of central government

A

Produce legislation which businesses must comply to e.g. Minimum wage act, health & safety procedures etc. Economic policies e.g. Changes in interest rates, inflation

99
Q

Interest of local government

A

Want businesses to be successful as they provide jobs & pay business rates. Want services it provides e.g. Schools, to be successful, meet central gov targets, provide good image & justify budget spending

100
Q

Influence of local government

A

By granting/not granting licenses for hotels/pubs, providing subsidised premises, granting planning permission. Influence services they provide (schools…) by allocating funding from council budgets & setting operational policies

101
Q

Interest of charities

A

Corporate donors want a charity that they donate to to be successful as it may provide them with good public relations

102
Q

Influence of charities

A

They can exert their influence by giving or not giving donations. Donors of large amounts of money may specify the use to which their donation is put.

103
Q

Interest of tax payers

A

They have an interest in publicly funded organisations to ensure that the taxes that they have paid are used effectively

104
Q

Influence of tax payers

A

They can exert their influence by voting for political parties at national and local government elections

105
Q

Short term finance

A

Paid back within a year. Bank overdraft, trade credit, debt factoring, grant, retained profits

106
Q

Advantages of bank overdraft

A

Borrow more than you have in your account - up to agreed overdraft limit. Easy to arrange. Relatively cheap as you only pay debit interest on the days that you are overdrawn.

107
Q

Disadvantages of bank overdraft

A

Can be expensive over a period of time. If limit is exceeded, the overdraft facility may be withdrawn and expensive charges incurred.

108
Q

Advantages of trade credit

A

Buy and revive raw materials/finished goods immediately but pay later (30/60/90 days). Useful when cash flow is a problem.

109
Q

Disadvantages of trade credit

A

No discount received before paying promptly. If you don’t pay when agreed, the creditor (the other business) may refuse to supply your business in the future

110
Q

Advantages of debt factoring

A

Gives a cash injection so that the company doesn’t have to chase debtors to solve debts. Improves cash flow. Factoring company chases all the unpaid invoices, saving your business time & money

111
Q

Disadvantages of debt factoring

A

Factors usually only deal with large quantities/invoices. Business does not receive full amount of invoice

112
Q

Advantages of a grant

A

Don’t normally have to pay it back. New business incentive particularly in areas of high unemployment

113
Q

Disadvantages of a grant

A

There is often conditions on what you can spend the money on. One-off payment that is not usually repeated

114
Q

Advantages of retained profits

A

Nothing to pay back

115
Q

Disadvantages of retained profits

A

Could slow any growth development

116
Q

Medium term finance

A

Paid back between 1- 3 years. Bank loan, leasing, hire purchase (HP)

117
Q

Advantages of a bank loan

A

Repaid in fixed instalments. Budgeting and planning easier

118
Q

Disadvantages of a bank loan

A

Often higher rates of interest paid for a small business because it is unlikely to have many assets for security.

119
Q

Advantages of leasing

A

Cheaper than buying in the short term. Avoids using up limited finance on an outright purchase. Leased equipment can be changed when obsolete - this is particularly useful regarding technology

120
Q

Disadvantages of leasing

A

Business does not own the equipment. Rental charges build over time - could work out more expensive than buying

121
Q

Advantages of Hire Purchase (HP)

A

Cost is spread, making it easier to afford. Equipment owned by business once final instalment paid

122
Q

Disadvantages of hire purchase (HP)

A

The goods are owned by the finance company until the final instalment is paid. Can be an expensive form of borrowing

123
Q

Long term finance

A

Can be paid back over many years. Owner’s savings, share issue, debentures, Venture Capital

124
Q

Advantages of Owner’s savings (sole trader/partnership)

A

This can reduce the amount to be borrowed if funding is required. It also allows the owners to keep control without bringing in others.

125
Q

Disadvantages of owner’s savings (sole trader/partnership)

A

Once invested, owner’s capital can be difficult to withdraw. Owner’s capital is at risk if business fails

126
Q

Advantages of share issue (PLC or LTD)

A

Limited liability & annual dividend for shareholders. Large sums can be raised. Does not need to be repaid.

127
Q

Disadvantages of share issue (PLC or LTD)

A

PLC could lose control of business. Issuing additional shares can be expensive. May be difficult to estimate an appropriate selling price.

128
Q

What is a debenture?

A

Individuals/organisations lend a company money. Can only be issued by PLCs. E.g. Fans in a football club

129
Q

Advantages of debentures

A

Won’t lose control of company. Debenture holders receive a fixed interest payment over the loan period & at the end of the loan period receive the original amount of the loan back e.g. 25 years. Large amounts of finance can be raised.

130
Q

Disadvantages of debentures

A

Debenture interest must be paid even if the business makes a loss. If the debenture dials, debenture holders have a relight to sell its assets in order to have the loans repaid.

131
Q

Advantages of Venture Capital (Venture Capitalists) e.g. dragon’s den

A

VCs will often provide finance when banks decide a loan is too risky

132
Q

Disadvantages of Venture Capital (Venture Capitalists) e.g. dragon’s den

A

VCs are usually only interested in large loans. Fees often high. VCs often want part ownership on exchange for the finance.

133
Q

Sources of assistance

A

Scottish Enterprise including Highland & Islands Enterprise, Business Gateway, Careers Scotland, Scottish Chamber of Commerce, Youth .business Scotland, Banks

134
Q

Scottish Enterprise including Highland & Islands Enterprise

A

Government funded and offer advise for business start-ups, help existing businesses grow, provide training courses & contracts, assist with obtaining grants e.g. EU grants, promote exporting

135
Q

Careers Scotland

A

Part of Skills Development Scotland. Provides assistance with recruitment & training, sources of information on local labour market, gives advice on employment law

136
Q

Youth Business Scotland

A

Charity providing low cost loans & grants to young people aged 18-25 interested in starting up a Business in Scotland. Also provides business mentoring, training & professional advice

137
Q

Banks

A

Provide source of finance, advice in financial planning, assistance in drawing up a business plan

138
Q

Methods of growth

A

Horizontal, vertical, diversification, de-integration, de-merger, divestment, asset stripping, outsourcing, management buy-out & buy-in

139
Q

Horizontal integration

A

Firms producing the same type of product/service combine together (e.g. 2 florists merging) goods/services become cheaper due to bulk buying, economies of scale & lower admin costs. Firms tend to dominate market

140
Q

Vertical integration

A

Firms at different stages of production in the same industry combine together e.g. Oil refinery integrating with a petrol station. Can be forward or backward

141
Q

Forward vertical integration

A

When business takes over a customer. Allows a firm to increase profits & control supply & distribution of their product e.g. Jam maker combining with the shop

142
Q

Backward vertical integration

A

When a business takes over a supplier. This gives a guaranteed source of stock. As stock will be cheaper, increased profits are possible e.g, jam maker taker over berry farm

143
Q

Diversification integration

A

When businesses operating in different markets merge. Reduced risk of business failure. Makes a larger & more financially secure business. E.g. Virgin (trains, active, Atlantic)

144
Q

De-integration

A

When a business cuts back on or sells minor areas of their business in order to concentrate on core areas. Also provides funds from selling off less profitable areas

145
Q

De-merger

A

Occurs when a business splits into 2 separate organisations to raise cash for investment. It concentrates its efforts on its core activities & cuts costs to make it more efficient

146
Q

Divestment

A

Occurs when a business sells its business assets or a subsidiary company to raise finance. E.g. When Morrisons purchased Safeway they identified a number of surplus stores to divest & sold them to other supermarkets

147
Q

Asset stripping

A

Occurs when a business buys another and then sells off profitable sections bit by bit & closes down the loss-making sections. A business may be worth more when sold off bit by bit than for the sum of what it was purchased for.

148
Q

Outsourcing

A

Involves 1 firm hiring another to supply parts or do part of a job instead of the firm doing it themselves. E.g. Printing, catering. Business may not possess specialist equipment, expertise or enough staff

149
Q

Advantages of outsourcing

A

See notebook

150
Q

Disadvantages of outsourcing

A

Less control over outsourced work, communication between businesses needs to be very clear, may have to share sensitive info (accounts, legal)

151
Q

Internal factors

A

Finance available, ability of staff, info available, ability of management, changes in costs

152
Q

How finance available affects a business

A

Lack of finance may mean that a business has to consider cost cutting measures such as staff redundancies, downsizing, delaying equipment replacement of new product developments

153
Q

How ability of staff affects a business

A

Expert and capable staff will be more productive in their work

154
Q

How information available affects a business

A

If a business possesses good quality market research information a business will be more capable of responding to consumer needs

155
Q

How ICT availability affects a business

A

The degree of ICT used within a business can influence the quality and quantity of products produced

156
Q

How ability of management affects a business

A

Good decisions made by management can have a positive influence on a business

157
Q

How changes in costs affects a business

A

Increases in wage rates or stock thefts would have a negative impact on a business’ profitability

158
Q

External factors - PESTEC

A

Political, economic, social, technological, environmental, competitive

Bus Man (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions