Business management Flashcards
AOS1 unit2
The environment that comprises all of the elements within a business
Internal environment
The environment immediately external to a business
Operating environment
The environment that consists of factors directly affecting businesses that are outside their control
Macro environment
Consists of two environments, the operating and the macro environment
External environment
A business owned and operated by one individual.
Sole trader
A business owned by two or more individuals.
Partnership
A company owned by private shareholders, not available to the public.
Private company
A company whose shares are traded publicly on a stock exchange
Public company
The plan implemented by a business to generate revenue and make a profit
Business model
Businesses that conduct activities via the internet
Online business model
A model where the business’s products are sold directly to consumers with no intermediaries involved
Direct-to-consumer model
A business with a physical presence such as a shopfront or an office, and involves face-to-face interaction with customers
Bricks-and-mortar business model
Where a business owner (franchisor) grants another (franchisee) the right to use their trademark or trade name, business systems and processes.
Franchise model
Businesses that buy and sell products across international borders
Importer and exporter business model
The items required by a business to produce its goods and services.
Resources
Raw materials from the environment that are used in the production of goods and services.
Natural Resources
People who provide the business with their skills and qualifications to conduct business activities
Labour Resources
Man-made goods used in the production of goods and services.
Capital Resources
the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making decisions.
Corporate social responsibility (CSR):
The physical or non-physical place that a business operates from
Business location
Businesses that use the internet to advertise and sell their goods and services
Online Businesses
Businesses that operate at home (the business owner’s or the client’s) and therefore do not require a specific business location
Home Businesses
where a business gets money from to fund their business activities
Sources of finance
A method of financing a new business with personal savings or invested funds from family or friends; can be supported by working to keep costs down and using revenue to grow rather than borrowing
Bootstrapping
