Bussiness Sac Three Flashcards
What is a Quantitative Factor
Factors that can be numerically calculated, such as the cost of purchasing or renting a premise
What is a Qualitative Factor
Factors that deal with the psychological and emotional aspects of location, such as proximity to public transport
What are the key factors when choosing a business location
- Nature and type of business (including desired business image)
- Available budget
- Amount of space required
- Special facilities required
- Access for employees. suppliers and customers
What are the three types of resources
- Natural resources
- Labour
- Capital resource
Define Natural resource
A material source of wealth such as timber, fresh water or mineral deposits, that occur in a natural state and has economic value.
Define Labour
It is the human physical and mental effort used in creation of goods and services. Labour is a primary factor of production.
Define Capital resource
It is Human made items used in the production process of goods and services. machinery and equipment are examples of capital resources.
What are the three types of factors affecting choice of resources
- Quality
- Reliability
- Social responsibility
How does quality affect that decision
Selecting suppliers who provide quality resources will ensure a standard of high quality production is maintained.
How does reliability affect that decision
By having suppliers that are reliable and deliver what is required on time enables a business to maintain production and maintained competitive.
How does Social responsibility affect that decision
in order to gain and maintain a reputation for being ethically responsible a business must select suppliers who have similarly high standards.
What is a business Layout
It is the physical set-up or arrangement of a business. This includes the placement of type of plant and equipment, fittings and fixtures.
List two advantages and disadvantages of a Grid Layouts
Advantages:
-Makes efficient use of floors and wall space
-Good for stores carrying large volume of stock
Disadvantages
- Customers may easily miss items
-Not visually exciting or interesting for customers
List two advantages and disadvantages of a loop layouts
Advantage: -Exposes customers to multiple departments and encourages cross shopping -Encourages buying and impulse shopping Disadvantages: -Difficult to locate specific items -Waste customer time
List two advantages and disadvantages of a free-form layout
Advantages:
-Visual diversity
Creates relaxing environment that encourages shopping
Disadvantages:
-Less actual room for products to be displayed
-Lack of define traffic pattern.
List two advantages and disadvantages of a Cellular office layout
Advantages:
- Promotes autonomous work
-Employees feel secure in their own space
Disadvantages:
-Difficult for teamwork
-Staff may feel isolated and less involved
List two advantages and disadvantages of a Open plan layout
Advantages:
-Promotes teamwork and interaction
-Efficient use of work space. Can accommodate more work space in a smaller area
Disadvantages:
-Lack of confidentiality
-Nose may impact on productivity and concentration levels
Define work environment
The surrounding condition in which an employee operates.
Define Ergonomics
The study of the relationship between people and their working environment
Define a Sole trader
An individual owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.
List two advantages and disadvantages of a Sole trader.
Advantages:
-Sole trader has complete control over all aspects of the business
-Sole trader owns all assets and receives all profits
Disadvantages:
-Sole trader is faced with unlimited liability
-Owner is tied to the business; has to make sacrifices and commitments for the business to be successful.
Define partnership
Partnership is a legal form of business ownership where two to twenty partners work together, combining their expertise and resources to run the business effectively.
List two advantages and disadvantages of a Partnership.
Advantages:
-Risk is shared between partners
-Offers broader access to capital, knowledge, skills and experiences
Disadvantages:
-Liable for any and all debts incurred by others
-Potential for disputes and personality clashes
What is a Company
A company is a separate legal entity, completely legally independent to its shareholders. The share holders have limited liability and the company is run by directors and has perpetual succession.
What is incorporation
It refers to the process of legally declaring a corporate entity as separate from its owner.
Explain what a private company is.
A private company is a company where the share holding is limited (small), with shares being solder privately; often run as a family business; has the words “Proprietary limited” at the end of its company name.
Explain what a public company is .
It is a larger company that can have a unlimited number of shareholders; shares can be freely traded on the stock exchange; has the word “limited (Ltd) after its name.
