homework

Question 1

what are dividens

Answer 1

a portion of the firm given to shareholders

Question 2

Ethical

Answer 2

Morally correct behaviour.g treating workers and the environment well.

Question 3

Fair trade

Answer 3

Buying raw materials at a price that allows a reasonable standard of living for the suppliers and often above at the market price.

Question 4

Growth(company growth)

Answer 4

The increase over time of the revenue of a business. Economic growth refers to the increase in size of the whole economy.e the sales of all the businesses in a nation.

Question 5

Limited liability

Answer 5

shareholders can only lose the money invested in the company not their entire personal wealth if the business collapses with debts. Limited liability is shown by either Ltd or plc

Question 6

Market capitalisation

Answer 6

the value of a company as measured by the stock market
Market capitalisation = no. shares x share price

Question 7

mission

Answer 7

the main purpose of an organisation

Question 8

Non profit organisations

Answer 8

An organisation which extists for the interests of its members or as a charity, so there are no shareholders only trustees benefit financially e.g Kimbolton School

Question 9

objective

Answer 9

Short term specific measurable target. E.g 1m sales next month

Question 10

Private limited company

Answer 10

A limited liability business where sales are not freely available for sale, decisions can be made by the owners. They are usually small or medium sized firms but there are exceptions e.g virgin

Question 11

Private sector

Answer 11

An organisation that is not government run or owned.

Question 12

Profit

Answer 12

The difference between a firms revenues from its trading activities and its total costs. It Is a reward for risk and a return on capital invested

Question 13

Profit formula

Answer 13

Profit=revenue- total costs

Question 14

Public sector organisations

Answer 14

Government- owned organisations

Question 15

Public limited companies

Answer 15

Large firms whose shares can be bought and sold by the general public on the stock exchange. The owners appoint managers to run the business.

Question 16

revenue

Answer 16

the income generated by the sales of a product

Question 17

revenue formula

Answer 17

Revenue= price x quantity sold

Question 18

share

Answer 18

A certified indicating part ownership of a company. The share entitles the holder to receive dividend and voting rights to affect the way the firm is run.

Question 19

shareholder

Answer 19

Part owners of a business who can vote at the AGM and receives dividend

Question 20

Sole trader

Answer 20

An individual who runs a business. She/he operates under unlimited liability so are personally responsible of all business debts

Question 21

A business

Answer 21

An organisation that exists to provide goods and services on a commercial basis to customers.

Question 22

The transformation process

Answer 22

describes what happens inside the business. This is where value is added to inputs to create outputs.

Question 23

what is cell

Answer 23

Capital, Enterprise, Land, Labour

Question 24

what is the added value formula

Answer 24

Added value= selling price- the cost of bought in materials, components and services

Question 25

What is SMART

Answer 25

specific, measurable, achievable, relevant, time bound.

Question 26

Fixed costs

Answer 26

Costs that do not change directly with the level of output

Question 27

Variable costs

Answer 27

Costs that change directly with output. They will increase by a set amount each time a new unit is made.

Question 28

what is the total costs formula

Answer 28

Total costs = fixed costs + variable costs