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GCSE Business > Business In The Real World > Flashcards

Business In The Real World Flashcards

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1
Q

Equation for Revenue

A

Price x Quantity sold

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2
Q

Equation for Profit or Loss

A

Total Revenue - Total Cost

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3
Q

Primary Sector

A

Industry involved in Raw Materials

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4
Q

Secondary Sector

A

Involved in using the raw materials to convert them to products

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5
Q

Tertiary Sector

A

Organisations that provide services-FAST FOOD RESTAURANT

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6
Q

4 Factors Of Production

A

Land
Labour
Enterprise
Capital

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7
Q

External Influences of a Business (name 3)

A

Social(age changes,family size)
Economic(interest rate,inflation)
Environmental(ethical)

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8
Q

Limited Liability

A

Owner/Shareholders have a separate identity from their business. Not responsible if anything happens to the business

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9
Q

Unlimited Liability

A

Shareholder are legally tied to the business

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10
Q

Main Business Objectives

A 
Survive
Profit
Shareholder value
Satisfaction
Market Share
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11
Q

Dividends

A

Sum of money paid by a company to it’s shareholders

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12
Q

Impacts Of Business Location

A 
Raw Materials.                       
Employment.                         
Competitors.                         
Infrastructure 
Proximity
Finance
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13
Q

Internal Growth

A

Occurs when a business get bigger by selling more products

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14
Q

External Growth

A

Occurs when a business gets bigger by joining or buying another business

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15
Q

Market capitalisation

A

Measures value of all the companies shares

Market price of share x number of shares

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16
Q

Franchise

A

Occurs when a franchisor sells the rights to a franchisee in return of fee and percentage of profits

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17
Q

Franchisee

A

Buys a franchise usually for a fee and a turnover

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18
Q

Franchisor

A

Sells a franchise in return of fee and a turnover

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19
Q

E-Commerce

A

Is the act of buying or selling a product using an electronic system such as the internet

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20
Q

Outsourcing

A

Occurs when a business uses another business to produce for it

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21
Q

Merger

A

Occurs when two or more businesses join together to form a new business

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22
Q

Takeover

A

Occurs when one business buys control of another

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23
Q

Economies of scale

A

Occur when a business’s unit cost of production falls as it’s output rises and the business expands

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24
Q

Diseconomies of scale

A

Occur when the cost per unit increases as a business expands

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25
Q

Examples of economies of scale

A

Bulk buying
Marketing
Advertisment

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26
Q

Examples of diseconomies of scale

A

Poor communication
Poor coordination
Poor cooperation

27
Q

Backwards intergration

A

Moving further from customer

28
Q

Forwards intergration

A

Closer to customer

29
Q

Horizontal Intergration

A

Horizontal integration is when two companies at the same stage of the production process merge or take over each other.

30
Q

Conglomerate intergration

A

Operating in a completely different industry

31
Q

Offshore

A

Setting up a business in another country

32
Q

Reshoring

A

Returning a company to the original country

33
Q

Goods

A

A physical product

34
Q

Service

A

Intangible product provided by someone

35
Q

Customer

A

Someone who buys a product from a business

36
Q

Consumer

A

Is someone who uses good and services provided by a business

37
Q

Entrepreneur

A

Someone who is willing to take risks to start a new business

38
Q

Enterprise

A

Refers to a business of organisation. Can also mean someone who takes advantage of new business opportunities

39
Q

Resources

A

Inputs in a business that are used to provide a good or service

40
Q

Interest

A

Reward for Saving and the Cost of Spending

41
Q

Interest rates

A

Refers to the cost of borrowing money

42
Q

Inflation

A

Refers to the rate at which prices are increasing

43
Q

Sole trader

A

Is someone who sets up a business on their own

44
Q

Advantages of being a sole trader

A

. Quick and easy to set up
. Make decisions for yourself
. Keep or decide what happens to all profits generated

45
Q

Disadvantages of being a sole trader

A

It can be stressful making all decisions yourself
-A sole trader needs to handle all aspects of the business
If the business goes wrong you have unlimited liability meaning you and your business are legally tied.

46
Q

Profit

A

The sum of money left from total revenue when total costs are paid

47
Q

Partership

A

Occurs when two or more people join together in a business enterprise to pursue profit

48
Q

Deed of partnership

A

Is an agreement between partners that sets out the rules of the partnership, such as how profit will be divided and how the partnership will be valued if someone wants to leave

49
Q

Private Limited Companies (Ltd)

A

Firms where shares are private. Shares/Ownership can only be sold if all shareholders agree

50
Q

Public Limited Companies (PLC)

A

Firms where shares and ownership can be sold and bought by anyone. PLCs shares are available on the stock market

51
Q

Advantages of Ltd

A

.limited Liability
.incorporated
.easier to get loans or mortgage
.owners have a lot of control over how business is managed

52
Q

Disadvantages of ltd

A

.more expensive to set up
.lots of legal paperwork
.legally obliged to publish its accounts every year

53
Q

Advantages of PLC

A

.much more capital can be raised by plc than any other business
.shares allow to expand and diversify the company
.limited liability and incorporation

54
Q

Disadvantages of PLC

A

.hard to get many shareholders to agree on how business is run
.easy for someone to buy enough shares to take over the company
.accounts have to be made public so competitors see if the business is struggling
.more shareholders means theres more demand for dividend payments

55
Q

Non-profit-organisation

A

These are firms whose goals are not solely for profit but to give back to the community

56
Q

Social Enterprise

A

Firms that make money by selling products and its aims are to use profits to benefit society

57
Q

Stakeholders

A

Anyone who is affected by a business’ decisions

58
Q

Who are the stakeholders

A

Owners- benefit from profit,high dividends and high share price
Employees- benefit from profitability,growth and ethics
Supplier-benefits from profitability and growth
Local Community-profit from environmental impacts,ethical considerations,profitability and growth
Government- benefit from profitability,growth and job creation
Customers-benefit from customer satisfaction

59
Q

What does a business plan do

A

Gives the business a clear idea of what they are going to need to do to be successful

60
Q

Sections of a business plan

A 
Personal Details
Mission Statement
Objectives 
Product description
Product details
Staffing requirements 
Finance
61
Q

What is the location of a business influenced by

A 
Raw materials
Labour Supply 
Competition 
Location of the market 
Cost
62
Q

Types of economies of scale

A

Purchasing Economies of Scale

Technical Economies of scale

63
Q

Methods of organic growth

A

E-commerce
Opening New Stores
Outsourcing

64
Q

Qualities of an entrepreneur

A

Hardworking
Organised
Innovative
Willingness to take risk

GCSE Business (6 decks)

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