key terms Flashcards by Elliot Bourne

what is a start up

a new business enterprise, formed by one or more entrepreneurs.

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what is a business

a business is an organisation that exists to provide goods and services on a commercial basis to customers.

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what is a profit

the difference between total sales and total costs

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what is revenue

The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.

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what is incorporated

limited liability
register as a company

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what is LTD

private limited company

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what is PlC

Public limited company

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what are the advantages of a public limited company

Limited liability
separate legal identity
more prestigious
can decide whether or not to pay dividends
can raise large amounts of capital

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what are the disadvantages of a public limited company

Lack of privacy as financial performance is available for all to share
more complex to set up because of increased legal requirements
some loss of control
risk of hostile takeover

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what is public sector

funded by the government

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what is private sector

not funded by the government

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what are non for profit organisations

businesses ran in order to benefit the community

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what is start up

a new enterprise, formed by one or more entrepreneurs

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what is an entrepreneur

someone who starts a business, has the initial idea.

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what is cell
-factos of production

Capital
Enterprise
Labour
Land

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what is USP

unique selling point

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what is an SME

Small and medium sized enterprises

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what is a primary business

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what is a secondary business

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what is tertiary business

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what is a quaternary business

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what is a tariff

A tax, a tax when when goods are imported into a country

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what are the different types of businesses

B2B- business to business
B2C- business to customer

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what is market capitalisation

the value of a business

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what is divided

share of the profit

div per share/share price x 100

what is a share price

determined by the interaction of supplyyand demand

calculation for total market capitalisation

share prices number of shares

what is a stake holder

anyone that affects or is effected by the business

what is CESSPIT

Cash flow Ethical Social Survival Profit Increase turnover

what is cash flow

money coming in and out of a compony

what is Ethical

is it morally right or wrong

what is social

Benefit groups within a society and has social goals fair trade

what is survival

the necessary needs to survive as a business.

what is profit

the financial gain from an enterprise after all costa have been paid

what is the formula for profit

Profit = Revenue - costs

what is increased turnover

growth that may lead to profit and power

what is SMART

Specific Measurable Achievable Relevant Time Bound

what does specific mean

the objective should state exactly what is to be achieved.

what does Measurable mean

An objective should be capable of measurement- so that it is possible to determine weather has been achieved.

what are the factors that can influence business objectives

Age of the business size and legal statues ownership views of owners and managers market conditions legalisation state of economy competition risk and attitude to risk corporate culture political factors social attitudes

what is an example of how competition can influence your business objectives

the gluten free market- warbatons

what are strategic statergies

long term set by the board involves higher risk challenging

what are tactical strategies

short term set by line management low risk

what does PESTLE stand for

Political economic social technology legal environmental -competition

what are Market conditions

the features of a market, such as the level of sales, sales growth, price levels, the number and strength of rivals, their market position and market share

what is demand

the amount of a particular good or service that customers or organisations want and able to afford to purchase. It is good determinant of how desirable a market is for firms.

how do income levels have an effect on demands

Normal and luxury goods will see sales rise as income levels rise

what inferior goods

goods that see their demand fall as consumers incomes rise

what are interest rates

the cost of borrowing money and the return for lending it.

what are the problems with becoming environmentally friendly

often more expensive.

what is plan A

Marks and spencers 100 commitments to tackle environmental and social issues. 5 areas e.g washing clothes at 30 degrees celsius

what is fair trade about

better prices, decent working conditions and fair term of trade for farmers and traders

how did lego improve environmentally

joined WWF decrease of 10% in energy use built wind turbines so they are 100% balance

arguments against being environmentally responsible

companies ultimate aim is to make profit extra cost passed on to consumers will not be able to use their resources more efficiently is it just good pr?

how do external factors effect cost and demand

incomes - normal and luxury goods will see sales rise as income levels rise. demographic factors- aging population

what are the two most important indicators of market conditions

Economic growth , market demand

what is a sole trader

what is unincorporated

A business which is not registered with companies House

what is a dividend

A share of profits allocated to shareholders

what is market capitalisation

The current value of a company calculated by share prices no. of shares issued

what is mutual

A business jointly owned by all its members and existing for the benefits of its members rather than making profit.