Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

BUSINESS STUDIES (COMPONENT 1) > BUSINESS OPPORTUNITIES (Jauncey) > Flashcards

BUSINESS OPPORTUNITIES (Jauncey) Flashcards

1
Q

What are needs?

A

Physical needs for survival
-water, shelter, food, etc
Limited

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

What are wants?

A

Luxuries that make our lives more comfortable
-mobile phones, holidays, etc
Unlimited

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

What is the definition of an entrepreneur?

A

A person who has an idea for a business, develops the idea and organises necessary resources to see the idea through

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

What are the roles of entrepreneurs?

A
  1. Thinking and researching an idea
  2. Set up
  3. Running of business
  4. Expansion
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are motives of an entrepreneur?

A

> maximise profit- gain return on investment
job satisfaction- able to be their own boss
recognition- increase self-esteem from success
promote a particular cause (utopian)

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

What are characteristics of an entrepreneur?

A
  • opportunity spotter
  • hard working
  • self motivated
  • determined
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are skills of an entrepreneur?

A
  • communication skills
  • literacy
  • numeracy
  • team working
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the importances of SMEs on the economy?

A
  • provide employment

- pay taxes

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

What is the definition of a stakeholder?

A

Anybody who is interested in the actions of a business

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

How can stakeholders be categorised as?

A

Internal or external
Primary or secondary
-P=directly related
-S=affected by actions but not directly

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

What is the definition of an enterprise?

A

A business whose purpose is to produce and sell goods and services.
Involves risk taking by an entrepreneur in order to gain a return on investments

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

What is the primary sector?

A

Extraction and use of natural resources and material from land and sea
includes:
-agriculture
-fishing

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

What is the secondary sector?

A

Raw materials turned into parts and components and finished products

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

What is the tertiary sector?

A

Where the business sells the final product to their consumer

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

How can you identify business opportunities?

A

Word of mouth

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

What are examples of stakeholders?

A
  • owners
  • customers
  • suppliers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a business plan?

A

A written document that describes a business. It covers objectives, strategies and sales

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

What are components of a business plan?

A

> financial forecast- break even, profit, etc
marketing strategy
the business and products or services

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

What are advantages of business plans?

A 
Attract investments (secure external findings)
Ensure firm develops healthy financial structure
Monitor progress
-Set targets (realistic=motivation)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are disadvantages of business plans?

A

Market research costs time and money
Cannot plan for future (unpredictable)
Can provide false hope

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

What are sources of guidance and information to help make a business plan?

A
  • princes trust
  • high street banks
  • the government
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the private sector?

A

Organisations can take numerous forms of business ownership
Usually exist to make a profit
Eg: Waitrose

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

What is the public sector?

A

Organisations owned and controlled by the government
Provide goods and services including street lighting, police and defence
Eg: NHS

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

In the public sector, what does the central government do?

A
  • provide services to the public, redistribute income from rich to poor (benefits through taxes) and pass laws
  • funded by income tax, VAT, corporation tax
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
In the public sector, what is the local government?
-solely responsible for certain are | Eg: refuge collection, flood defence, education, etc
26
What is an aim?
What the business aims to achieve in the long term
27
What is an objective?
A short term specific outcome which allows the business to achieve its aims
28
What are aims and objectives of the private sector?
- profit - expansion - survival
29
What are aims and objectives of the public sector?
- focussed more on needs than wants | - create a fair and just society
30
What are features of public goods?
Feature 1- non excludability -everyone can use them regardless of their wealth or circumstance Feature 2- non rivalry -ones persons use does not diminish anothers use
31
What are public goods funded through?
Tax revenue
32
What are merit goods
Provided by both public and private sector (although mainly public) Funded through tax revenue Eg: libraries, education and healthcare
33
What is unlimited liability?
Liable for all debts, personal assets may be used to pay off the debt
34
What is limited liability?
Business owners only liable for the amount they have invested into business
35
What is an unincorporated business?
The owner has no legal identity | The business has unlimited liability
36
Whats an incorporated business?
Legal difference between the business | Owner has limited liability
37
What is a sole trader and what are factors of them?
Business owned and controlled by one person - can employ people - owner has decision making power
38
What are aims and objectives of a sole trader?
Survival, profit and expansion
39
As a sole trader, where does the profit go?
Reinvestment Income tax paid on profit Withdrawn as drawings
40
What are benefits of being a sole trader?
Quicker decision making | Gain a profit
41
What are drawbacks of being a sole trader?
Limited capital- rely on own savings Limited range of skills Success rate relies on one person
42
What is a partnership?
Involves joint ownership of a business, usually between 2 and 20 Usually have unlimited liability but can have limited liability
43
What are objectives of a partnership?
Survival, growth and profit
44
What are benefits of being in a partnership?
Wider range of skills Shared decision making Less pressure=increased job satisfaction, key roles distributed
45
What are drawbacks of being in a partnership?
Unlimited liability Conflict- new partners can cause strains Profit must be shared- smaller income
46
What is a limited company?
Have limited liability as they become incorporated which involves separating the owner and business legally to form separate entities
47
What is the incorporation process?
Register with registrar of companies 1. Memorandum of association - outlines business details - purpose is to prevent fraud 2. Articles of association - internal rules of company
48
What is an LTD?
Shares cannot be bought or sold without agreement of director
49
What are benefits of an LTD?
Limited liability | More control
50
What are drawbacks of being an LTD?
Expansion is harder | Profit must be shared with shareholders
51
What is a PLC?
When an LTD has a share capitol of more than £50,000 it can convert to a PLC Shares can be floated on stock exchange
52
What are benefits of being a PLC?
Limited liability | Expansion easier
53
What are drawbacks of being a PLC?
Distance between customers | Easier to lose control as shares are sold to public
54
What are reasons for turning from an LTD to a PLC?
- banks more willing to lend (have £50,000) | - growth more likely
55
What are reasons to turn from a PLC to an LTD?
- reduce number of shareholders | - avoid risk of hostile takeover (51%)
56
What are charities?
Reliant upon donations Exist to promote their cause Spread awareness Usually rely on volunteers
57
What are cooperatives?
Organisations owned by its members where a group of people have come together to work, buy, or sell goods and services
58
What is a consumers cooperative?
Where a group of local consumers get together for mutual benefits. They buy, produce and sell it for a fair price
59
What is a workers cooperative?
``` Democratic organisations (everyone has their say) ^motivation ```
60
What are advantages of cooperatives?
Increase motivation- all involved in decision making (work harder=better quality=better rep=more customers=more revenue=profit=everyone gets more More ethically run=improve brand rep-word of mouth=increased awareness
61
What are disadvantages of cooperatives?
Prefer internal recruitment (limit further growth) -cant bring about new ideas Workers may find it hard to find external promotion difficult as its a radical change (different way of working)
62
What is a social enterprise?
A business with primarily social objectives whose surpluses are reinvested for that purpose rather than to make a profit for shareholders

BUSINESS STUDIES (COMPONENT 1) (7 decks)

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