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A-level Business Studies > Gibbins Theme 1 > Flashcards

Gibbins Theme 1 Flashcards

1
Q

Enterprise meaning

A

-Another word for a business, made up by an entrepreneur

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2
Q

Entrepreneurs characteristics

A 
Risk taker
Enthusiastic
Imaginative and creative 
Persistence and drive 
Self belief and confidence
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3
Q

GDP

A

Gross domestic product
The amount of products and services sold in the country.
GDP decreases significantly causes a recession

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4
Q

Primary sector

A

Activities undertaken by directly using natural resources …

  • agriculture
  • Fishing
  • forestry
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5
Q

Secondary sector

A

Involves converting raw material into finished goods
Manufacturing/construction
Assembly plants

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6
Q

Tertiary sector

A

Provision of services

  • financial services
  • leisure services(pubs,clubs,football)
  • Transport
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7
Q

Private sector

A
  • businesses are operated and owned by private individuals and companies
  • Private sector businesses are generally run for profit to earn returns for shareholders
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8
Q

Public factor

A
  • businesses and other organisations are owned and run on behalf of the public, either by the Government
  • public sector businesses are generally not run for profit
  • exist to provide goods and services to the public using public funds
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9
Q

Unlimited liability

Unincorporated

A

Sole trader and partnership
Can lose more money than you invest
Assets are not protected
Business and owner are same legal entity

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10
Q

Limited liability/ incorporated

A

Private limited companies(ltd), public (PLC)
Business and owner are separate legal entities
You only can lose the money you invest in the business
Assets are protected

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11
Q

Franchise meaning

A

Business with a well known brand name(franchiser) lets a person or group of people(franchisee) set up using that brand

No legal structure in itself( liability depends on how business is established)

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12
Q

What is a franchisee?

A

A group that set up a business, using the franchiser’s brand name

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13
Q

Advantages for the franchiser

A
  • won’t have to spend large amounts of money to expand

- products necessary for the franchise to operate are under the franchisers control

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14
Q

Disadvantages for the franchiser

A
  • control issues
  • the cost of supporting the franchises
  • friction between parties
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15
Q

Disadvantages of a franchisee

A
  • profit is shared
  • franchise fees and royalties
  • supplies have to be bought from the franchiser
  • the business cannot be sold without permission
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16
Q

Advantages of a franchisee

A
  • lower risk
  • support advice and training
  • marketing
  • easier to obtain finance
17
Q

Cooperative meaning

A

A business that is owned by its members. Profits are shared between members rather than being distributed to shareholders

18
Q

Co-operatives function is…

A

Not to make profit. Is about fair trade and ethics

19
Q

Measuring the business size and growth

A
  • number of employees
  • number of factories, shops and offices
  • turnover and profit levels
  • stock market value
  • capital employed (total value of assets)
20
Q

Organic growth

A
  • Launch of new products
  • Expansion into new geographical markets
  • exporting
  • new distributing channels
  • franchising
21
Q

External growth

A
  • Takeover of competitor
  • merger with competitor
  • Acquiring a supplier or major customer
  • joint venture overseas
22
Q

External growth tend to be much quicker. Organic growth…

A

Tends to be a slower process

23
Q

Joint venture

A

Two or more businesses pool their resources and expertise to achieve a particular goal. A new entity is made and the two or more businesses stay separate

24
Q

Strategic alliance

A
  • No new entity made
  • more contract based
  • arrangement between two companies that have decided to share resources
25
Q

Merger

A
  • two previously separate businesses integrate to form a new business
26
Q

Integration

A

Forward vertical- acquiring a business further up in the supply chain
Horizontal
Backward vertical- acquiring a business operating earlier on the supply chain

27
Q

Difference between multinationals and internationals

A

International companies are importers and exporters, they have no investment outside their home country. Multinational companies have investment in other countries

A-level Business Studies (8 decks)

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