Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

business > enterprise > Flashcards

enterprise Flashcards

1
Q

definition of need

A

a need is a good or service essential for living

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

definition of economic problem

A

there are unlimited wants but limited resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

definition of want

A

a want is a good or service which people would like ot have but it isnt essential for living

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the factors of production?

A

land - natural resources

labour - people employed in a business

capital - machinery, factory, finance in order to manufacture goods

enterprise - the skills required by a man to connect the other resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

definition of scarcity

A

the lack of sufficient products to fulfill the total wants of the population

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

definition of opportunity cost

A

the next best alternative given up by choosing another item

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

definition of specialisation

A

it occurs when people and businesses concentrate on what they are best at

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is division of labour?

A

it’s when the production process is split up into different tasks and each worker preforms one of them

its a form of specialisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

advantages of division of labour

A

workers are trained in one task and they specialise in this so it increases efficiency and output

less time is wasted transitioning from one job type to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the disadvantages of division of labour?

A

workers can become bored so efficiency might decrease

if one worker is absent and no one else can do the job then production might come to a halt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is added value?

A

it’s the difference between the selling price of a product and the cost of bought in materials and components

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is the definition of business?

A

businesses combine factors of production to make products which satisfy people’s wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

how can you increase added value (2)

A
  • reduce material costs
  • increase price
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

define:

primary sector

secondary sector

tertiary sector

A

primary = it extracts and uses the natural resources of the earth to produce raw materials used by other businesses

secondary = it manufactures goods using the raw materials provided by the primary sector

tertiary = it provides services to consumers and the other sectors of industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is deindustrialisation?

A

it occurs when there is a decline in the importance of the secondary manufacturing sector of industry in a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

example of primary sector

A

fishing, farming, extracting raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what i mixed economy?

A

it has both a private and public sector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

example of tertiary sector

A

retailing, banking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

example of secondary sector

A

processing and manufacturing raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is a private sector?

what is a public sector?

A

private = owned by private individuals

public = owned and controlled by government or state agencies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is the definition of an entrepreneur?

A

it’s a person who organises, operates and takes the risk for a new business venture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

benefits of entrepreneurs

A

independence

income may become high

use own skills/ interests

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

disadvantages of entrepreneurs

A

risk

lack of business experience

start up capital needed

17
Q

common characteristics of entrepreneurs

A

self confidence

creative

innovative

independent

effective communicator

hard working

risk taker

optimistic

18
uses of a business plan
to help gain finance careful planning helps reduce risk you can identify possible risks before they happen so you can mitigate from them
18
what is a business plan?
its a document containing the business objectives and important details about the operations, finance and owners of the new business
19
why does the government support start ups?
reduce unemployment increase competition increase output benefit society can grow further
20
what is internal growth?
occurs when a business expands its existing operations
21
what is external growth?
occurs when a business takes over or merges with another business
22
merger
a merger is when the owners of two businesses agree to join their firms together to make one business
23
why do some businesses fail?
poor management failure to plan for change poor financial management over-expansion risks of new business start ups
24
what is a sole trader?
it's a business owned by one person
25
what's the definition of limited liability?
it means that the liability of shareholders in a company is only limited to the amount they invested
26
what's the definition of unlimited liability?
it means that the owners of a business can be held responsible for the debts of the business they own
27
what is partnership?
partnership is a form of buiness in which two or more people agree to jointly own a business
28
what is an unincorporated business?
it's one that doesn't have a separate legal identity. sole traders and partnerships are an example of this
29
benefits of partnerships
able to raise capital from all partners responsibilities are shared more ideas from new partners partners can specialise no limited liability
30
Benefits of Sole Traders
Owner in complete control No sharing profits Incentive to work hard Easy to set up No limited liability
31
Benefits of Limited liability company?
Raise Capital from sale of shares Limited liability for shareholders Separate legal identity Continuity
32
Limitations of limited liability company
Cannot sell shares to public Legal formalities Accounts must be available for public to see Not easy to transfer shares
33
Definition of Dividends
They are payments made to shareholders from the profits of a company
34
benefits of public limited company
Can sell shares to public Rapid expansion possible Limited liability Continuity
35
limitations of public limited company
Legal formalities Disclosure of accounts and other information Divorce between ownership and control Expensive to set up
36
Definition of a Joint Venture
when two or more businesses agree to start a new project together sharing the capital, the risks and the profits.
37
Advantages of joint ventures
Sharing costs- very important for expensive projects such as new aircraft Local knowledge- when joint venture company is already based in the country Risks are shared
38
Disadvantages of joint ventures
If the new project is successful, then the profits have to be shared with the joint venture partner. Disagreements over important decisions might occur. The two joint venture partners might have different ways of running a business- different cultures
39
Definition of franchise
It is a business based upon the use of the brand names, promotional logos and trading methods of an existing successful business
40
Advantages of a franchisor
The franchisee buys a license from the franchisor to use the brand name Expansion of the franchised business is much faster if the franchisor had to finance all new outlets The management of the outlets is the responsibility of the franchisee All products sold must be obtained from the franchisor
41
Disadvantages of franchisor
poor management of one franchised outlet could lead to bad reputation for the whole business the franchisee keeps profits from the outlet
42
Advantages of franchisee
The chances of business failure are much reduced because a well-known product is being sold The franchisor pays for advertising All supplies are obtained from a central source- the franchisor Training for staff and management is provided by the franchisor
43
Disadvantages of franchisee
less independence than with operating a non franchised business may be unable to make decisions that would suit the local area license fee must be paid to the franchisor and possibly a percentage of the annual turnover
44
what are public corporations?
these are fully owned by the state or the governement they are usually businesses which have been nationalised, this means they were once owned by individuals but now belong to the governement
45
46
Disadvantages of public corporations
there are no private shareholders to insist on high profits and efficiency often there is no close competition to the public corporations government can use there businesses for political issues
47
What objectives do businesses set?
Business Survival Profit Returns to shareholders Growth of the business Market Share Service to the Community
48
definition of business objectives
they are aims or targets that a business works towards

business (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions