Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

GCSE BUSINESS > Business In The Real World > Flashcards

Business In The Real World Flashcards

1
Q

What is a business?

A

An organisation that trades it’s products and services for money.

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

What is a product?

A

Anything that is capable of satisfying customer needs, it is tangible and can be touched

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

What is a service?

A

A service is an act that a business person carries out for you in exchange for money

Example: gardening, hairdresser

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

What are the 4 factors of production?

A

Land– somewhere to produce the goods e.g. a farm

Labour– people to work in the business e.g. farm workers

Capital– money to get the business started

Enterprise– This is the drive or motivation from the owners to start a business

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

What is an opportunity cost?

A

The cost of not selecting an alternative decision ( that idea had the opportunity to do better so it is not literal cost but a metaphorical cost.)

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

What are 5 good reasons to start a business?

A

To produce goods
To supply a service
To distribute products
To fulfill a business opportunity
Providing a good or service to benefit others – social enterprise

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

What is a social enterprise?

A

A business which has the objective of trading to help people or the planet, rather than making a profit

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

What is the primary sector?

A

The primary sector extracts raw materials from the planet ( mining diamonds )

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the secondary sector?

A

In the secondary sector goods are manufactured from raw materials into finished goods ( metal made into cars )

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

What is the tertiary sector?

A

The tertiary sector also includes shops, retail, banking and insurance

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

What is the definition of enterprise?

A

A company or business

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

What is an entrepreneur?

A

A person who starts a business and takes on financial risk in the hope of making a profit

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

Why would some people want to become an entrepreneur?

A

To be your own boss
Flexible hours
To pursue an interest
Dissatisfaction with current job
To identify a gap in the market
To earn more money

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

What are inflation rates?

A

The rate of increase in prices for goods and services

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

What are interest rates?

A

This is set by the Bank of England. When this rises the cost of borrowing increases

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

How would inflation rates affect a business?

A

If these go up in the UK then raw materials required to make goods may increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How would interest rates affect a business?

A

A rise interest rates will impact a business because if they have loans or overdrafts these will now cost them more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are unemployment rates?

A

The rate of unemployment in the UK is those people without a job who have been actively seeking work in the past 4 weeks and are available to start work in the next 2 weeks

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

How would unemployment rates affect a business?

A

More unemployed means that a business will have more applicants per job that they advertise

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

What are exchange rates?

A

the cost of one currency expressed in terms of another e.g. $ to £

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

How would exchange rates affect a business?

A

If the pound is strong (increases) then a business thatimports will find that the goods become cheaper, however if they export the goods will become dearer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a sole trader?

A

A sole trader is a business which has only one owner
Have unlimited liability

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

What are some examples of sole traders?

A

Corner shops
Plumber
Electrician
Cleaner

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

What are the advantages of being a sole trader?

A

They are their own boss
Easy to set up
Need less capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What are the disadvantages of being a sole trader?
Unlimited liability Difficult to raise money No one to take over if ill
26
What does unlimited liability mean?
This means that the business and the owner are ONE legal entity If the business gets into debt, the owner gets into debt
27
What is a partnership?
2 or more people that run a business and are all joint owners of the business
28
What are some examples of partnerships?
Doctors Dentists Accountants Solicitors
29
What are some advantages of partnerships?
Easy to set up Small capital needed All information about the business can be kept private
30
What are some disadvantages of partnerships?
Unlimited liability Can disagree on many things Trust can be an issue
31
What does limited liability mean?
When an owner can only lose the money they invest into the business If the business is in debt, the owners will only lose the money they put into the business
32
What is a private limited company ( ltd ) ?
Shares cannot be bought by the public, the share issue is limited (hence the ltd) to friends and family who can buy shares in the business Have limited liability
33
What are some examples of ltds?
Eddie stobart Raleigh uk
34
What are the advantages of ltds?
Protection of limited liability for investors, they cannot lose their own assets on the value of the investment Easy to raise capital – issue more shares to friends and family Banks more willing to lend money to a ltd company than a sole trader
35
What are the disadvantages of ltds?
Business has to issue more information about itself which can be expensive to produce Business has to prepare Annual Accounts and have these printed and sent to all shareholders Also has to make annual accounts available for general public and competitors to see.
36
What is a public limited company ( plc ) ?
A company that sells products to anyone on the stock exchange Have limited liability
37
What are some examples of plcs?
Tesco Barclays Waitrose
38
Advantages of plcs
Protection of limited liability for owners and investors Easy to raise capital – issue more shares Banks more willing to lend money to a large well-established company – less risk
39
Disadvantages of plcs
Expensive to produce accounts every year Has to publish annual accounts which means the public and competitors can see all their financial information Expensive process to become a plc
40
What is a not for profit organisation?
A not-for-profit organisation is one that has the objective of something other than making a profit (but it still might make a profit) Made for a social cause Have limited liability
41
What are some aims a business may have?
Survival Profit maximisation Growth Market share
42
What are some objectives a business may have?
Customer satisfaction Getting to the break even point ( survival ) Reaching a certain amount of shops in the country or globally
43
What is the break even point?
Not making profit but not losing money
44
What is shareholder value?
Where shareholders, in a business, earn a return from their investment which is greater than their required rate of return
45
What are aims?
Aims are the strategic goals of a business; for example, to grow
46
What are objectives?
Objectives are more specific steps; for example, to increase sales by 5% over the next year
47
What is the role of objectives in a business?
Motivate workers Keep an eye on profit Helps the owner focus on growth
48
Why doesn't every business have the same objectives?
Business size Level of competition Type of business ( sole trader, partnership )
49
What would be objectives for a not for profit business?
Aim to tackle the effects of poverty – Provide jobs and tackle unemployment – Help children with a social need – Tackle the issue of an aging population – Help the homeless – Education and training initiatives
50
How could a business change their objectives?
They could start as a sole trader or partnership and then build their company as they make more profit
51
What is a stakeholder?
A stakeholder is defined as anyone who has an interest in a business and is affected by the actions of the business
52
Who are typically the main stakeholders of a business?
Owners, employees, local community, customers, suppliers
53
What is the owner's role in the business?
To start and run a business to make profit
54
What is the employees role in the business?
To work in the business in return for wages / money
55
What is the customers role in the business?
To buy goods or services from the business
56
What is the local community's role in the business?
For those who live near a business who may be affected by its operations and to give feedback for the business
57
What is the supplier's role in the business?
To provide the business with goods or services that they might need to sell
58
What do the owners want from the business?
To get a good return on any money they have invested into the business
59
What do the employees want from the business?
To have job satisfaction
60
What do the customers want from the business?
To get a good choice of goods and services and to get value for money
61
What do the local community want from the business?
They want the business to provide jobs and they want the business to operate in an ethical way
62
What do the suppliers want from the business?
They want to charge high prices for goods and services to make profit
63
How are stakeholders affected by business activity?
If the owners choose they want to grow the business then more employees are needed, there will be more customers, the local community will be larger and the suppliers may want more money
64
How do employees affect business activity?
They can influence productivity on how hard they work
65
How do suppliers affect business activity?
Can choose wether to raise prices for goods meaning the business will have to spend more money
66
How does the government affect business activity?
Introduce new laws to benefit or affect the business
67
How do customers affect business activity?
Decidimg wether to purchase the goods that the business sells
68
How does the local community affect business activity?
Protesting against the goods being sold or anything to do with a business
69
How can employees cause conflict in a business?
They want higher wages meaning the owners would have to spend more money to pay them more
70
How can managers cause conflict in a business?
They want big bonuses but owners and shareholders don't want to pay them
71
How can customers cause conflict in a business?
They want low prices and higher quality products which can cause a business to spend money they dont want to spend
72
How can local communities cause conflict in a business?
They want lower pollution levels but this will cost the owners and shareholders of a business more money
73
How can suppliers cause conflict in a business?
They want to get good prices for the goods they sell and this can cost businesses more money
74
What are some factors influencing the location decision of a business?
The cost of premises : can cost businesses a lot of money Government grants : they dont need to be payed back so can influence the location The type of goods a business sells The location of where the customers are Where a businesses competitors are
75
How could unemployment rate impact a businesses location?
If the unemployment rate in a specific area in higher then they will get more job applications if they move there
76
How may other businesses impact a businesses location?
If there are smaller businesses in a location, you could steal all of their customers to get more sales
77
How might materials impact the location of a business?
If all of a businesses raw materials are in a specific place, then it would be a good idea to put stores near where they are
78
Where would a retail business locate their shops?
Where other retail stores are
79
Where would a service business locate?
Near where their customers are
80
How would manufacturing affect the location of a business?
Put their business near roads to be closer to manufacturing stores

GCSE BUSINESS (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions