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Business Studies I Have Created Myself > Chapter 1- Business Start Up > Flashcards

Chapter 1- Business Start Up Flashcards

1
Q

What is a business

A

It is any organisation which is involved in the providing of goods and services to meet our everyday needs

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2
Q

What are four factors of production

A

Land- the natural resources, the land we build on as well as, mines, fishing and forestry, payment= rent
Labour- the physical and mental contributions given by an employee, payment= salary
Capital- not wanted as its self but what it can go on to make eg. computers 💻
Entrepreneurship- people who are willing to take the risk and bring all factors together to create a successful business

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3
Q

What is an entrepreneur

What are 3 characteristics of an entrepreneur

A 
Is someone who is willing to take risks to achieve a successful business 
Risk taking 
Independent 
Hard working 
Ability to learn from failures
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4
Q

Why does the government encourage entrepreneurship (4)

A

Employment
Stimulates economic development
Can bring money to Northern Ireland
People who set up are usually highly motivated

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5
Q

What are three types of product

A

Primary- the extraction of raw materials form the earth
Secondary- the manufacturing and construction of a finished product
Tertiary- provides a service

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6
Q

What is the chain of production

A

Refers to all the production stages a product goes through before it is sold to a customer

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7
Q

What is interdependence

A

When economies, businesses, workers and consumers all become dependent on each other for their welfare

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8
Q

What is the…
Private sector
Public sector
Voluntary sector

A

Owned by the government
Owned by private individuals aiming to make a profit
Owned by private individuals not aiming to make a profit

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9
Q

What are types of private sector businesses

A 
Plc
Ltd 
Sole trader 
Franchise 
Partnership 
Social enterprise
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10
Q 
Give facts about sole traders 
How many owners 
Liability 
Capital provided 
Profits 
Risks 
Legal requirements
A 
1
Unlimited 
Owner
Owner 
High 
None
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11
Q 
Give facts about partnerships 
How many owners 
Liability 
Capital provided 
Profits 
Risks 
Legal requirements
A 
2-20
Unlimited, sleeping partner (limited)
Partners 
Partners 
High 
None
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12
Q 
Give facts about plc 
How many owners 
Liability 
Capital provided 
Profits 
Risks 
Legal requirements
A

Unlimited amount of shareholder/ board of directors
Limited
Shareholders
Shareholders
Low
Certificate of trade, memorandum and articles association

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13
Q 
Give facts about ltd 
How many owners 
Liability 
Capital provided 
Profits 
Risks 
Legal requirements
A 
Unlimited amount of shareholders 
Limited 
Shareholder 
Shareholder
Low 
Registered under the memorandum and article of association act
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14
Q 
Give facts about franchise 
How many owners 
Liability 
Capital provided 
Profits 
Risks 
Legal requirements
A 
The franchisee owns the premises while the franchisor owns the name 
Depends on set up 
Franchisee 
Franchisor gets % royalties 
Low 
Depends on set up
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15
Q

What is an unincorporated business

A

No legal difference between the owner and the business

Sole trader, partnership

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16
Q

What is a incorporated business

A

There is a difference between the business and the owner

Plc, ltd

17
Q

What are four advantages of unincorporated businesses

A

Easy to set up
Provide a personal service
Specialist
Keep all profits

18
Q

What are three disadvantages of unincorporated business

A

Lack of continuity
Unlimited liability
Lack of capital

19
Q

What are three advantages of incorporate businesses

A

More capital from sale of shares
Limited liability
Specialisation

20
Q

What are three disadvantages of an incorporated business

A

Threat of takeover
Harder to set up
Divorce between ownership and control

21
Q

What is a franchise
What is a positive of it
Give examples
What sector is it in

A

Where a business (franchiser) allows another business (franchisee) to trade under their name
Growth
McDonalds, Pizza 🍕 Hut,
Private sector

22
Q

What is the advantages (2) and disadvantages (1) of a franchisee

A

Support from franchisor
Established name

Lack of control

23
Q

What are the advantages and disadvantages of a franchisor

A

Get % royalties from franchisee
Quick way to grow

Risk of reputation if bad franchisee

24
Q

What is a social enterprise

Give two examples

A

Aims to give back to the community, profits are reinvested or given to local community
Jamie Oliver’s Fifteen restaurent, divine chocolate 🍫

25
Q

What are some business aims (5)

A 
Profit maximisation 
Growth 
Corporate image 
Concern for environment 
Survival
26
Q

What are two public sector aims

A

Public service

Covering costs, breaking even

27
Q

Why are aims helpful

A

Gives staff and managers a common purpose and direction
Useful in the context of forward planning
Will help firm make decisions

28
Q

What is a stakeholder

A

An individual or group of individuals that are impacted if a business is successful or not

29
Q

What are four internal stakeholders and what are they interested in

A

Owners/ shareholder- profit
Employees- salary, job security, working conditions
Managers- salary, perks, job benefits Directors- profit, personal income

30
Q

What are four external stakeholders

A 
Customers- value for money 
Suppliers- regular orders 
Pressure groups- ethical behaviour 
Local community- employment 
Trade unions- employees treated fairly, gong pay levels, good working conditions

Business Studies I Have Created Myself (3 decks)

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