Business paper 1 Flashcards
Give the 4 main characteristics of being an entrepreneur
- Creativity
- Risk taking
- Determination
- Confidence
What are 2 potential rewards for risk taking?
- Financial
- Self satisfaction
What are 3
potential drawbacks for risk taking?
- Health
- Strained relationships
- Loss of finance
What should go into a business plan? (Name 3)
- The business idea
- The people running the business
- Competitors
- Market research
- Finance
- Objectives of the business
- The target market
What are the 4 main roles of a business plan?
- Identifying gaps in the market
- Helping with finance
- Identifying resources that a business needs to operate
- Achieving business aims and objectives
Give 2 advantages of being a sole trader
- Easy to set up
- Profits
- Control
- Financial information is private
Give 2 disadvantages of being a sole trader
- Unlimited liability
- Illness
- Shortage of capital
- Hours of work
- Skill shortage
- Continuity
Give 2 advantages of being in a partnership
- Capital
- Easy to set up
- More skills in the business
- Workload is shared
- Financial information is private
Give 2 disadvantages of being in a partnership
- Profit is shared
- Unlimited liability
- Shortage of capital
- Slower decision - making
- Continuity
What are the 5 business aims/objectives?
- Profit
- Growth
- Market share
- Survival
- Providing a service
How might a businesses aims and objectives differ from being a new business compared to an already established business
A new business will want to survive whereas an established business will want to grow or earn profit.
Who are the 2 main internal stakeholders?
- Employees
- Owners
Who are the 4 main external stakeholders?
- Customers
- Local community
- Suppliers
- Government
What are the two ways a business can grow?
- Organically
- Externally
Give 2 examples of organic growth
- Gaining new customers
- Developing new products
Give 2 examples of external growth
- Merger
- Takeover
What does the human resources department deal with?
- The organisation of workers
- Communications in the workplace
- The recruitment and selection of workers
Name the 2 types of organisational structures and describe them both
Flat structure has less layers
Tall structure has more layers
Give 2 advantages of tall structures
- The span of control is likely to be narrower
- There is more opportunity for promotion
Give 2 advantages of being a flat structure
- Wider span of control will means managers can delegate easily
- Less chance of miss communication as communication is now clearer
Give 1 advantage and 1 disadvantage of being a part time worker
A
It is cheaper and less responsibility
D
Part time usually means a lower income
Give 1 advantage and 1 disadvantage of working from home
A
They might be more motivated
Can do more work
Save costs and space
D
They can exchange ideas easily
The worker may produce less
May miss out on the social aspect of work
Name the 3 types of verbal communication
- Phone
- Meetings
- Presentations
Name the 3 types of written communication
- Letters
- Social media/websites
- Emails and texts
Explain how using a website can have advantages and disadvantages to a business
A
The products are available 24/7
There is a wider target market
Customers can buy from home
D
The website could stop working
There is a lot of advancement in technology so the website could become outdated
It needs to be updated regularly
Name the 2 steps for recruitment
- Analysis of human resources needs
- Advertise the job
Name the 2 steps for selection
- Shortlisting the candidates
- Selecting who to interview from the shortlist
Name the 2 types of recruitment and define them
Internal recruitment
- Employing from inside the business
External recruitment
- Employing from outside the business
What could be in a job advertisement
- Duties or tasks
- Qualifications which may be needed
- Salary details
- Place of work
- Hours of work
- Contact address
- Details of how to apply for the job
Name at least 3 methods of selection
- Letter of application
- Application from
- CV
- Interviews
- Tests and presentations
- Group activities
- References
What benefits do well - motivated workers bring to a business?
- High employee performance
- Less need to supervise them
- Reduced waste of raw materials
- Better delivery of services
What are the two types of motivation and give an example of each?
Financial
- Wages
- Bonusses
Non - financial
- Praise
- Working environment
What might a business train their workers towards?
- Management skills
- Personal development
- Product knowledge
- Health and safety training
What are the two types of training and give an advantage and disadvantage of each?
Off the job training
A
- Experts give the training so it is more professional
D
- They may gain the skills and then leave
On the job training
A
- The training is more specific to the business
D
- The workers need to train them so there will be less productivity
What could a business discriminate against?
- Race
- Ethnicity
- Sex / Gender
- Religion / belief
- Sexual orientation
How could a business discriminate against a worker?
- Pay them less
- Not promote them
- Not train them properly
Name the 3 types of production
- Batch production
Where a product is made in sections - Job production
Where one employee makes the whole product - Flow production
Where every employee does one part of the product
Give an advantage and a disadvantage of each type of production
Job production
A - Products are usually high quality
D - Costs will be high as workers need to be skilled
Batch production
A - The products are made suited for the customer
D - Takes time to switch between the products
Flow production
A - Large amounts can be made
D - Jobs on an assembly line can be repetitive and so can be very boring for the workers, making them lose motivation
Describe the difference between quality control and quality assurance
Quality control is checking a product is good quality before selling
Quality assurance is checking a product is good quality while it is being made
Give 3 methods of selling
- E - commerce
- Face to face
- Telesales
How could a business provide good customer service (name 3 points)
- After - sales service
- The importance of good product knowledge
- Customer engagement
What 3 things should a product be to be able to sell it?
- Of satisfactory quality
- Fit for purpose
- As described
What factors influence where a business might choose to be located?
Proximity to:
- Labour
- Suppliers
- Customers
- Competitors
- Raw materials
What is the role of procurement (3 points)
- Identifying customer needs
- Choosing suppliers
- Ordering goods and services
