Business & The Budget Flashcards
What are some different forms of business ownership?
Sole Trader
Partnership
Private company
Sole Trader features
One owner
Employees work for them
Milk bar, carpenter, florist
Private company features
Between 1-50 shareholders
Seperate legal entity
30% tax on income
Aldi, 7/11
Factors that can affect business location?
Target market Foot traffic How much income that area makes Surrounding businesses Think strategically Putting a fish and chip shop next to a bottle o. Good idea.
What is business ethics?
Business ethics are the moral guidelines and principles a business should follow. For example, paying staff on time, paying suppliers on time, not exploiting staff and avoiding false advertising.
How can you be an ethical producer?
Establish partnerships with companies that have ethical policies in place
If purchasing resources from poorer countries, make sure they are getting paid properly.
What is surplus?
Surplus is a quantity of assets that is larger than needed. It is having too much if something than what is needed. In terms of the budget it would be having too much money and not enough places to allocate it.
What is deficit?
Deficit is the property of being an amount by which something is less than required. In the budget, deficit is an excess of expenditure over revenue.
Is the budget in surplus or defect?
The current budget is in defect. There is an excess of expenditures over revenues.
Outline a proposed change to revenue of expenditure that the government wishes to introduce and what will be the impact.
The government wants there to be less deficit, so they have cut money from certain areas such as pension to create more revenue. But impact wise, people who are on these sort of welfare benefits will endure a lack of money and will be effected by not having the extra money.
Three Assets that should go on a balance sheet
Money in bank
Stock
Furniture
Three liabilities that should go into a balance sheet
Loan from bank
Creditors
Owners equity (assets-liabilities)
