Business revision Flashcards
What is an aim?
A broad, long-term goal that summarizes what a company wants to achieve.
What is an objective?
A specific, measurable goal that a company works towards to achieve its long term vision.
An example of a financial aim.
To increase revenue so that profits are more likely to increase.
An example of a non financial aim.
Customer satisfaction, employee satisfaction and environmental sustainability.
What is a hostile takeover?
A takeover without the managements knowledge.
What is a friendly takeover?
When both sides of the transaction consent to the deal.
Suggest three ways a business can grow in size?
Advertisement, opening new outlets and expansion overseas.
How is the size of a business measured?
Number of employees, revenue/turnover and volume of sales.
What is internal growth?
When a company grows within the business by opening new branches or introducing new products.
What is external growth?
When a company grows by joining with another company.
What is a merger?
Two companies joining together.
What is a takeover?
One company helping another.
What is globalisation?
When the world is becoming interconnected by a business.
What is retained profit?
The amount of a business’s net income that is kept within accounts rather than paid out to shareholders.
What is import?
Goods or services brought from abroad.
