Business In The Real World Flashcards
What is a business?
An organisation that produces a good or supplies a service
Examples of a business
ASDA, which sells food and other goods for money
Eletrician goes to customer’s houses and fixes their electrics in return for money
Examples of a product
Cars
Washing machines
Mobile phones
A service
an act that a business person carries out for you in exchange for money
Examples of a service
Accountancy
Travel agents
Cleaning
4 factors of production
Land – somewhere to produce the goods
Labour – people to work in the business
Capital
Enterprise
Reasons for starting a business
To produce goods
To supply a service
To distribute products
How social enterprises help people
Aim to tackle the effects of poverty
Provide jobs and tackle unemployment
Help children with a social need
How social enterprises can help the planet
Reduce pollution
Tackle deforestation
Halt climate change
Primaty sector
extracts raw materials from the planet
Mining materials, chopping down trees for wood
Secondary sector
Goods are manufactured from raw materials into finished goods
Examples of a secondary sector
Plastic
Metal
Other materials made into cars
Tertiary sector
concerned with providing services for its customers
Examples of teritary sectors
Lorries and transport of goods
Entreprenueur
A person who starts a business and takes on financial risk in the hope of making a profit
Business Initiative
internal campaigns in companies set out to achieve certain goals
What can businesses use social media for
Attract customers
Get customer feedback
Increase your market reach
Inflation rates
The rates of increase in prices for goods and services
Interest rates
the cost of borrowing money or the return for investing money
Why would anyone want to be an entrepenuer
They want to keep all profits of a business for themselves so they can earn more money
They have an interest or obby which grows into a business
They want to be their own boss and make their own decisions instead of being employed and reporting to someone else
Entrepenuership
Refers to the ability to be an entrepenuer to take risks to develop a business idea
Social enterprise
A business set up to help society rather than to make a profit
What is a good
physical products that are either purchased or produced for the purpose of being sold
Customer
Someone who buys a product
How to make a business successful
When it can meet the needs and wants of customers effectively
Consumer
Someone who uses goods and services produced by businesses
Opportunity cost
something that is given up in order to do something else
Example of opportunity cost
this could be when a business must choose between two different office locations
they will face opportunity costs for the location they do not choose
How do inflation rates affect businesses
by supply pressure as they pay more to buy materials and products
How do intrest rates affect a business?
Rising interest rates make your business debt more expensive
What are the unemployment rates
the percentage of people in the labour force that are unemployed
What impact do unemployment rates have on businesses
For many businesses, this will result in lower sales as people spend less
What are exchange rates?
A rate at which one currency will be exchanged for another currency
How do exchange rates impact a business?
By changing the attractiveness of their products to overseas customers
Capital
money to get the business started
Enterprise
drive or motivation from the owners to start a business
3 methods of external growth a business could choose
Merge
Takeover
Franchise
Explain one benefit to a business of using part-time staff
Flexibility to cover breaks and holidays
Explain one benefit of providing induction training for employeees
new recruits become productive as quickly as possible
What does the term RECIPE stand for?
R-aw materials,E-mployment,C-competitors,I-nfrastructure,P-roximity to market,E/F-inance
What does the term SIC stand for?
Sales,Image,Costs
What is a stakeholder?
A stakeholder is someone who has an interest in a business, like employees, customers, or shareholders. They can influence or be affected by the business’s decisions.
What does business planning include?
Market research,financial forecast,external pressures,sales and marketing,production process,human resources
What is franchising?
Franchising is a business arrangement where a franchisor grants a franchisee the right to sell its products or services using the franchisor’s brand and business model. The franchisee pays fees and royalties to the franchisor in exchange for this right.
