key terms Flashcards
what is a start up
a new business enterprise, formed by one or more entrepreneurs.
what is a business
a business is an organisation that exists to provide goods and services on a commercial basis to customers.
what is a profit
the difference between total sales and total costs
what is revenue
The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.
what is incorporated
limited liability
register as a company
what is LTD
private limited company
what is PlC
Public limited company
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
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
what is public sector
funded by the government
what is private sector
not funded by the government
what are non for profit organisations
businesses ran in order to benefit the community
what is start up
a new enterprise, formed by one or more entrepreneurs
what is an entrepreneur
someone who starts a business, has the initial idea.
what is cell
-factos of production
Capital
Enterprise
Labour
Land
what is USP
unique selling point
what is an SME
Small and medium sized enterprises
what is a primary business
what is a secondary business
what is tertiary business
what is a quaternary business
what is a tariff
A tax, a tax when when goods are imported into a country
what are the different types of businesses
B2B- business to business
B2C- business to customer
what is market capitalisation
the value of a business
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.
