Business Studies Topic 1 Flashcards
What is a business
An organisation that produces a good or supplies a service
Example of a business
ASDA, which sells food and other goods for money
Eletrician goes to customer’s houses and fixes their electrics in return for money
Examples of products
Cars
Washing machines
Mobile phones
A service
an act that a business person carries out for you in exchange for money
Examples of a service
Accountancy
Travel agents
Cleaning
4 factors of production
Land – somewhere to produce the goods
Labour – people to work in the business
Capital
Enterprise
Reasons for starting a business
To produce goods
To supply a service
To distribute products
How social enterprises help people
Aim to tackle the effects of poverty
Provide jobs and tackle unemployment
Help children with a social need
How social enterprises can help the planet
Reduce pollution
Tackle deforestation
Halt climate change
Primary sector
extracts raw materials from the planet
Mining materials, chopping down trees for wood
Secondary sector
Goods are manufactured from raw materials into finished goods
Examples of secondary sector
Plastic
Metal
Other materials made into cars
Tertiary sector
concerned with providing services for its customers
Examples of tertiary sector
Lorries and transport of goods
Entreprenueur
A person who starts a business and takes on financial risk in the hope of making a profit
Business Initiative
internal campaigns in companies set out to achieve certain goals
What can businesses use social media for
Attract customers
Get customer feedback
Increase your market reach
Inflation rates
The rates of increase in prices for goods and services
Interest rates
the cost of borrowing money or the return for investing money
Why would anyone want to be an entrepenuer
They want to keep all profits of a business for themselves so they can earn more money
They have an interest or obby which grows into a business
They want to be their own boss and make their own decisions instead of being employed and reporting to someone else
Entrepenuership
Refers to the ability to be an entrepenuer to take risks to develop a business idea
Social enterprise
A business set up to help society rather than to make a profit
What is a good
physical products that are either purchased or produced for the purpose of being sold
Customer
Someone who buys a product
What makes a business successful
When it can meet the needs and wants of customers effectively
Consumer
Someone who uses goods and services produced by businesses
Opportuniy cost
something that is given up in order to do something else
Example of opportuniy cost
this could be when a business must choose between two different office locations
they will face opportunity costs for the location they do not choose
How do inflation rates affect businesses
by supply pressure as they pay more to buy materials and products
How do interest rates affect businesses
Rising interest rates make your business debt more expensive
What are unemployment rates
the percentage of people in the labour force that are unemployed
What impact do unemployment rates have on businesses
For many businesses, this will result in lower sales as people spend less
What are exchange rates
A rate at which one currency will be exchanged for another currency
How do exchange rates impact a business
By changing the attractiveness of their products to overseas customers
Capital
money to get the business started
Enterprise
drive or motivation from the owners to start a business
3 methods of external growth a business could choose
Merge
Takeover
Franchise
Explain one benefit to a business of using part-time staff
Flexibility to cover breaks and holidays
Explain one benefit of providing induction training for employeees
new recruits become productive as quickly as possible
Identify 3 stakeholders of a business
Customers
Owners
Suppliers
How to work out percentage increase of 36 to 54 items sold a week
54 - 36 = 18
18 ➗ 36 x 100 = 50% increase
How to work out percentage increase
Find the difference between 2 numbers (a - b)
Divide the difference with the original number
And x100
(c ➗ b x 100) = increase
Sole trader
a self-employed person who owns and runs their own business as an individual
What’s a partnership business
arrangement by two or more parties to manage and operate a business and share its profits
Examples of a partnership business
GoPro & Red Bull
Uber & Spotify
Apple & MasterCard
Explain, using one business example, why conflict may arise between different business stakeholders
Employees will want higher wages but owners will want lower costs and higher profits
Explain one benefit to a successful business of expanding through franchising.
A successful business can grow quickly with limited risk
