Business unit 1 gcse Flashcards
What is a good?
Goods – physical (tangible) products such as burgers, cars, laptops.
What are wants?
Wants – things which we desire.
What is a service?
Services – non-physical items such as hairdressing, NHS, banks,
insurance.
What are needs?
Needs – essential for us to live.
Land definition ?
Land - A business needs land or a building
Labour definition?
Labour - A business needs workers.
Capital definition ?
Capital - A business needs money to start and run.
Enterprise definition?
Enterprise - An entrepreneur is needed to bring it all together and run the business.
Primary sector definition ?
Primary - Extraction of raw materials e.g farmer, coal mining.
Secondary sector definition ?
Secondary - Turing the raw materials extracted at the primary stage
into finished goods.
Tertiary sector definition ?
Tertiary - Provide a service and sell the goods and services e.g. NHS,
shops.
What is an Entrepreneur?
Entrepreneur - someone who takes a risk and starts a business. Determination, passion, creative, motivated, takes risk, organised persistent
What are Stakeholders?
anyone who is interested or affected by what a business does
Why do businesses face a constantly changing environment (external)?
Political, Environmental, Social (trends changing), Technology, Legislation (laws), Economy (unemployment, interest rates), Competitors
Who can stakeholders be?
Owners, employees, customers, local community, suppliers, government etc. or Stakeholders sometimes have conflicting views and can influence the decisions a business makes.
What is a Sole trader ?
a type of enterprise owned and run by only one person and in which there is no legal distinction between the owner and the business entity.
What is a Partnership?
a legal arrangement that allows two or more people to share responsibility for a business
What is a Private limited company ?
A business that is owned by its shareholders, run by directors and where the liability of shareholders for the debts of the company is limited.
What is a public limited company?
is a business that is legally allowed to sell its shares to the public
What is unlimited liability?
if the business fails, you not only lose the money you invested, but your personal possessions can also be taken to repay any debt the business has.
What is limited liability?
you only lose the money that you invested. If the business fails and has debts, your personal possessions are NOT at risk of being taken.
Aims for businesses?
An aim is general and is what a business hopes to achieve as a result of its work e.g. survive, maximise profit, grow, increase market share, improve customer satisfaction, be more ethical, increase shareholder dividends, break even.
Objectives for businesses?
Objectives state in more detail how an aim will be achieved. Objectives should be SMART. Specific,Measurable, Achievable Realistic, Time based.
E.g. To grow by opening 20 new stores within the next two years.
Why does a business have aims and objective?
To co-ordinate business activity, Gives a common goal for workforce, Helps with decision making
How can a business measure success?
Profit, number of stores, customer satisfaction, number of customers, reputation, number of items sold, market share.
Factors influencing business location?
Proximity to target market, cost, availability of raw materials, availability of labour, infrastructure in area, competition.
What are Business Plans?
personal details, mission statement, aims and objectives, details of product/service, market research, production details, expected costs and profit, financial documents
Expanding a business?
Organic (internal) growth franchising, open new stores, embrace e-commerce, outsource, develop new products./ External (inorganic) growth: merger & takeovers./
Economies of scale
the benefits a business gets by growing
Diseconomies of scale
(the negatives a business can experience by growing in size):
Poor communication, lack of motivation, loss of direction and co-ordination.
