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Business AS-Level > CH1 - Business Plans > Flashcards

CH1 - Business Plans Flashcards

1
Q

What is a Business?

A

A single person or a group of people producing and producing a product

Trading and selling of goods and services in exchange of revenue

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2
Q

What is Revenue?

A

Profit

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3
Q

What is a Consumer ?

A

not buyer, can just looking/ Buyer is a customer

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4
Q

Definition of a Product/Good

A

Tangible ( Spend money to get a physical object in return)

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5
Q

Definition of a Service

A

In/non tangible (Spend money to get a service in return)

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6
Q

How would you identify a customers wants and needs?

A

By looking at Market habits and share, questionnaires

Customer wants and needs can be seen through their buying habits at the company, through questionnaires. Looking at what the market share is, looking at social media.

Surveys, Market research, focus group

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7
Q

What are the Factors of Productions?

A

Land , Labour , Capital & Enterprise

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8
Q

What is land ?
(Factors of Production)

A

Where which either the factory resides or the company owns the land from which their materials are farmed (Renewable and no-renewable energy)

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9
Q

What is labour ?
(Factors of Production)

A

People - Work done by people

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10
Q

What is Capital ?
(Factors of Production)

A

What the company owns such as finances, land, factories

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11
Q

What is Enterprise ?
(Factors of Production)

A

The combined abilities of a person, who is often the owner of the business, to create and make a product/service ……..

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12
Q

What is an Entrepreneur ?

A

A Person who sets up a business or businesses taking on a financial risks in hope of profit.

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13
Q

Attributes of an entrepreneur ?

A
  • Someone who is innovative (they have new ideas and methods)
    • Someone who has the motivation to commit to long hours and work through failures
    • Have may skills and learns quickly
    • Leadership skills and are able to delegate while being able to encourage others
    • Risk taker who has money (useful if they have a good reputation)
      Someone who is confident with themselves to see things through and not have failures affect them much
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14
Q

What are the Production Factors ?

A

Land, Capital , Enterprise & Labour

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15
Q

What is Land ?
(Production Factors)

A

Raw materials e.g. Oil, ore (Site upon which they are farmed also - land and sea)

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16
Q

What is Capital ?
(Production Factors)

A

Money, cash flow and capital goods

17
Q

What is Enterprise ?
(Production Factors)

A

Risk takers (Entrepreneurs), Decision makers and coordinators

18
Q

What is Labour?
(Production Factors)

A

Skilled, unskilled, temporary, seasonal and permeant

19
Q

What is creating value?

A
  • Increasing selling price
  • Buying cheaper versions of the material and keep the same price
  • Using raw materials so cost of item falls
20
Q

Problems with Creating Value?

A
  • Will existing customers buy if the selling price is increased?
    • Will the new price turn away new customers if increase?
    • What will happen to quality of product if materials are swapped with lower grade yet cheaper materials?]
    • Dose the business have the equipment and capability to use raw materials?
      Are the staff properly trained skilled workers or would the business need to hire to produce products with raw materials
21
Q

What is Opportunity cost ?

A

The cost or benefit of the next best item given up

22
Q

Why is a business environment dynamic?

A
  • Political environment
    • Other businesses
    • Technological advancements
    • Social and demographic factors
    • Government economics
    • Social policies
    • Labour market
    • Legal framework (for businesses e.g.
    • Customer demand and taste
      Business is a dynamic situation, it’s always changing.
23
Q

What are common reasons for business failing?

A
  • Lack of record keeping ( Includes : Inventory, employee details, invoices, inventory, stock takes etc.)
    • Lack of capital ( no cashflow forecasts, not starting with enough capital, poor skills with marketing and cash handling etc.)
    • Poor management skills ( No ; leadership skills, sales and marketing skills, poor at decision making, bad communication skills)
    • Changes in business environment ( New competition, legal changes, economic changes, technical changes)

Business is a dynamic situation, it’s always changing.

24
Q

What are the “basic” business sizes?

A

Local Business
National business
International business (MNC)

25
Q

What is a Local business?

A

Operate in small, “well defined” areas of a country. Owners often don’t aim to expand and attract customers from the whole country. (Examples - Hairdressers, child minding services)

26
Q

What is a National business?

A

A business which advertise to the a whole country and operates in many places across the country

27
Q

What is an International business (MNC)?

A

Business which operate in one or more countries and advertise to the countries or the world

28
Q

What are barriers to entrepreneurs?

A
  • Access to finances
    • Fear of failure
    • Location
    • Lack of customers
      - Lack of training/knowledge
29
Q

Impact of an enterprise on a country and its economy

A
  • Increase in employment
    • Increase in GDP (measure of a country’s standard of living)
    • Entrepreneurs bringing in new ideas
      Increase exports
30
Q

Definition of Intrapreneurship

A

Intrapreneurship is the practice of promoting entrepreneurial thinking/behaviour in an existing business within its employees

31
Q

What are the pros and cons of Intrapreneurship

A

Pros - Can use employees to make a difference in the market with their ideas (competitive advantage) / Can increase motivation within a business

Cons - Leadership conflicts, strategy conflicts

32
Q

What are the output types?

A
  • Consumer products
  • Consumer goods
  • Consumer services
  • Capital goods
33
Q

What are capital goods?

A

Brought and used in the industry, used for the production of other products

34
Q

What are Consumer services?

A

Non-tangible for example train rides/ a flight on the plane

35
Q

What are Consumer goods?

A

Both durable and non-durable products used by the average person/household

36
Q

What are consumer products?

A

Goods & Services - Brought by final customer to use, they are not able to be used to produce other products from

37
Q

Output examples

A

Snickers - Consumer good
Washing Machine - Consumer good
Flight - Consumer service
Restaurant meal - Consumer good
Rubber? - Capital good

38
Q

Three sectors are ..

A

Tertiary Sector
Primary Sector
Secondary Sector

Business AS-Level (11 decks)

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