Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business > Eve higher business 2022 > Flashcards

Eve higher business 2022 Flashcards

1
Q

primary sector

A

business that are involved in exploiting natural resources e.g. farming, mining and oil drilling

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

secondary sector

A

business that are involved in manufacturing and construction, taking natural resources and turiung them into products to be sold later.
e.g. car production, house building

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

tertiary sector

A

business that are involved providing a service e.g. hotels, banks and hosptitals

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

quaternary sector

A

business that provides infromation and knowledge based services e.g. ICT, consultanct and R&D

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

public sector

A

government owned organisations what aim to provide a service to society. includes NHS, police and state education

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

public limited companies PLC’s

A
  • owned by shareholders - who have limited liability
  • controlled by board of directors
  • rasie finance by selling shares publicly, through stock market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

aims of a PLC

A
  • dominate the market
  • increase market share
  • increase market value
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

advanatges of a PLC

A
  • shareholders have limited liability
  • large amounts of money can be rasied through public sale of shares
  • easy to borrow money due to size and repuatation
  • easily dominate the market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

disadvanatges of a PLC

A
  • dividends are shared with many shareholders
  • control of the business can be lost as anyone can buy shares on the stock market
  • annual accounts have to be published
  • setting up a PLC is costly and complicated
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

the public sector - central government

A
  • the UK government provides national services to the citizens of the UK that would be very difficult to rely on the private sector to provide
  • also includes nationalised companies - bought by government to stop them from going bust
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

the people of the central government

A
  • overall control is held by elected politicains

- individual departments are controlled by employed citizens - civil servants

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

aims of the central government

A

to provide a quality service

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

the public sector - local government

A

provide essential services to the public all free of charge such as:
schools
refuse collection
street lighting

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

the people of the local government

A

strategic decision making is carried out by elected councillors
tatctical decisions and operational day-to-day running is done by managers and employees of the council

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

finance for the local government

A

rasied by taxation from central gov, local council tax and local business rates.

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

finance for the central government

A

raised through taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

aims of the local government

A
  • provide a quality service
  • dont aim to make profit
  • aim to stick to a budget
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

factors affecting objectives

A
  • sector of industry
  • size of organisation
  • changing circumstances
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

satisficing

A
  • aiming for a satisfactory result, rather than best possible outcome.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

managerial objectives

A

managers within large PLCs or public sector organisations may persue their own objectives. They may try to achive objectives which they believe will improve their status within the company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

working within a budget

A

some organisations will have the objective of sticking to thier annual budget and not overspending.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

corporate social responsibility

A

refers to organisations aiming to act in an ethical way or in any way that benefits either society or the environment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

methods to ensure good CSR

A
  • ethical and envriomental responsibilities, e.g. avoiding the use of child labour
  • philanthropy for example, donating to charity.
  • economical responsibilies, e.g. using fair and competitve marketing
  • legal responsibilies, e.g. abiding by laws that govern businesses.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

advantages of positive CSR

A
  • the business gains a good reputation for its craing nature
    customers who agree with the aim are likey to use the business
  • the business can attract high-quality staff who believe in the ethics of the business
  • society and the environment are kept in good order, which will benefit the business in the long run.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

growth

A

to make the business larger.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

advantages of growth

A
  • reduces the risk of failure
  • increases profits
  • avoids being taken over
  • removes competition
  • econmies of scale
27
Q

outsourcing/ contracting-out

A

when orgainisation arranges for another organisation to carry out certain activities for it, instead of doing it itself.
e.g. construction, legal services, IT work and marketing

28
Q

advantages of outsourcing

A
  • allows the buisness to concentrate on on doing what it is good at.
  • less labour and equipment is required for outsourced activites
  • there should be high-quality work from the outsourced business as it should have greater expertise and specilist equipment.
  • the outsourced business may provide the service cheaper than an in-house department
  • the business is able to use the service when it is required
29
Q

disadvantages of outsourcing

A
  • the business will have less control over outsourced work so quality mey fall
  • communication between the businesses needs to be very clear to make sure exact specifications are met
  • the business may have to share sensitive information wuth the outsourced business that could get into the hands of competitors. - outsourcing could be more expensive than in-house as specialists and expertise come at a price.
30
Q

external factors

A

external factors are the different situations that impact on the success of an organisation that arise outside the organisation.
the organisation can’t control external factors.

31
Q

political factors

A
  • arise from decisions made and actions taken by the government, either at a local or national level.
  • this can be changes in laws and legislation, or alterations to a government’s fiscal policy which impacts upon spending in an economy by altering tax rates and levels of public spending.
32
Q

positives of changing laws and legislation

A

The government could introduce environmental protection laws and policies such as ‘Zero Waste Scotland’ and, by complying, organisations will
be seen in good light. This is good PR and can attract potential customers.

33
Q

negatives of changing laws and legislation

A

The government could increase the minimum wage so that organisations have
higher wage costs. This will result in a lower profit for the year.

34
Q

positive of changing income tax rates

A

The government could reduce taxes (money collected by the government to fund public spending), such as income tax. This will give customers a higher disposable income. This means customers will be more likely to buy
products.

35
Q

negatives of changing income tax rates

A

The government could increase income tax.
This will give customers a lower disposable income. This means customers would be less likely to spend money on a business’s
products, unless it is essential. This will reduce sales overall.

36
Q

positives of changing VAT rates

A

The government could lower VAT (value added tax). This is a tax on goods and services. Reducing the VAT rate will make products more affordable for customers, increasing sales for a business.

37
Q

negatives of changing VAT rates

A

The government could raise VAT. This will increase the selling price which could put
customers off purchasing products and reduce sales.

38
Q

positives of changing corporation tax

A

Many types of businesses, such as limited companies, have to pay a tax on their profits (corporation tax). The government could lower the rate of corporation tax which would mean
less money is taken from the business and given to the government, which would increase profits.

39
Q

negatives of changing corporation tax

A

The government could raise the rate of corporation tax which means more money
would be taken from the business and given to the government, which would reduce the profit of the organisation.

40
Q

positives of public spending on infrastructure

A

The government could decide to fund the development of infrastructure. Examples include building new motorways, car parks, tram networks, and so on. This will increase the
likelihood of attracting customers for businesses in these areas.
Public spending also creates jobs, which gives people wages and enables them to spend money on other goods and services.

41
Q

negatives of public spending on infrastructure

A

Public spending is a contentious issue as it only improves certain areas. For example, the Edinburgh tram network greatly improved Edinburgh’s infrastructure; however, businesses in Glasgow saw no benefit. Tis is known as ‘opportunity cost’, i.e. the cost of spending money
on one area is that it can’t be spent in another.

42
Q

competition policy

A

In 2014, the Competition and Markets Authority (CMA) was launched by the UK government. Its aim is to investigate markets and enforce competition policy in order to promote competition for the benefit of consumers

43
Q

reasons for promoting competition

A
  • prices are kept low for consumers
  • products and services are high quality
  • customer service is good
  • entrie markets improve and grow, creating jobs and raising GDP
  • healthy markets can attract foreign investment
44
Q

impact of competition policy - cartels

A

Organisations cannot participate in cartels. This means colluding with other organisations to fix prices to make higher profits. If found guilty of participating in cartels, owners or management can be fined or even sentenced to prison.

45
Q

impact of competition policy -mergers

A

The CMA can block mergers if it is likely to lead to a ‘substantial lessening of competition’ in any market. The CMA can also impose conditions that must be met for a merger to be given the green light. For example, when the CMA investigated the Sainsbury’s/Asda merger they forced them to divest (sell) a number of stores, mostly to Morrison’s, to ensure there was enough competition in certain towns.

46
Q

impact of competition policy - anti-competitive behaviour

A

Organisations cannot use their dominant position in the market to charge drastically low prices, pay lower prices to suppliers or control the supply of goods to the detriment of the market.

47
Q

impact of competition policy - consumer protection

A

Consumers have rights and are protected from unfair practices such as hidden charges and poor customer service.

48
Q

economic factors

A

Economic factors arise from the state of the economy. An economy is the state of a country or region in terms of the production and consumption of products, and the supply of money.

49
Q

boom stage of economic cycle

A

definition
GDP and employment levels are very high. demand for products is high.
impact
Businesses can take advantage of the demand for products and the wealth of consumers by increasing prices. This will improve profits for the business.
However, a side effect is an increase in inflation. This is a rise in prices over time and
often leads to wage rises, so people can afford to keep up with inflation.

50
Q

recession stage of economic cycle

A

definition
GDP and employment levels fall. demand for products falls
impact
Businesses have to react to a falling demand by making staff redundant, which will cost them redundancy payments and lose them the skills and knowledge of employees.
Prices will have to be cut to try and increase demand, which will lower the amount of profit a business can make and may even lead to losses.

51
Q

recovery stage of economic cycle

A

GDP and employment levels begin to rise. demand for products increases.

52
Q

economic policy

A

It is the role of the government to try and control the economy through a number of measures, called economic policy. The economic policy of a government can be divided into two areas, fiscal policy and monetary policy.

53
Q

economic policy - fiscal policy

A
  • Fiscal policy – A government’s fiscal policy concerns the tax rates it sets and its level of public spending (as covered in the political section of external factors).
54
Q

economic policy - monetary policy

A
  • Monetary policy – A government’s monetary policy is the ways in which it controls the supply of money into the economy and therefore affects spending. This can be done by varying interest rates
55
Q

interest rates

A

Interest rates determine the percentage that is added to borrowings or savings. All financial institutions, such as banks or building societies, set their own interest rates. However, the government bank, the Bank of England, sets the base rate of interest. This is the minimum rate of interest that banks and building societies must apply to loans and savings.

By increasing interest rates the Bank of England attempts to curb spending and therefore reduce inflation.

By decreasing interest rates the Bank of England attempts to encourage
spending in order to avoid a recession or to recover the economy.

56
Q

effects on saving due to the rise in interest rates

A

Customers are more likely to save due to attractive rates as they will earn more money on their savings. This means customers will spend less on businesses’ products as they are
saving their money instead.

57
Q

effect on borrowing due to the rise in interest rates

A

Customers are less likely, or able, to take out loans or to spend using credit cards as they will have to pay back more money on their borrowing. This means customers will be able to spend less on businesses’ products.

58
Q

effects on saving due to the reduction in interest rates

A

Customers are less likely to save as interest rates are unattractive, so are more likely to spend money on businesses’ products.

59
Q

effects on saving due to the reduction in interest rates

A

Customers are more likely to borrow money as it is less expensive to pay back loans and credit card debts, so are more likely to spend money
on businesses’ products.

60
Q

exchange rates

A
  • An exchange rate determines the amount of one currency that can be bought using another currency.
  • the exchange rate of the pound sterling against foreign currencies changes on a daily basis
  • a high value or ‘strong’ pound is caused by a high demand for the currency.
  • if UK products are selling well abroad the pound will be in demand and the price will rise.
61
Q

strong pound - effect on exports

A

if the value of the pound is high compared to foreign currencies, UK exporters will struggle to sell their products abroad as they will be more expensive than foreign goods and sales will fall.

62
Q

strong pound - effects on imports

A

if the value of the pound is high compared to forgein currencies, imports will become cheaper. this will decrease costs for businesses that source materials from abroad which will increase their profits. it will also allow a lower selling price to be charged for the products made in the UK to attract customers.

63
Q

weak pound - effects on exports

A

if the value of the pound is low compared to foreign currencies, UK exporters will be able to sell more goods to foreign counteries as their goods will be less expensive for customers outsude the UK

64
Q

weak pound - effects on inports

A

if the value of the pound is low compared to foreign currencies, imports will become more expensive. this will increase costs for businesses that source their materials from abroad and may lead to an increase in prices.

business (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions