Brainscape's Knowledge GenomeTM

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


See full index

Business flash cards > Key terms > Flashcards

Key terms Flashcards

1
Q

Objective

A

the short-term steps a business needs to take to meet its overall aims

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

Aim

A

the overall long-term target or goal of the business

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

Example aims

A

make £120,000 profit
get a market share of 50%

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

Business growth

A

Business growth is where a business grows organically or inorganically.

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

Internal/organic growth

A

Internal/organic growth is where a business grows by selling more products/their service

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

External/inorganic growth

A

External/inorganic growth is where a business grows by merging/taking over another business

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

Backwards vertical growth

A

This is where the seller purchases a supplier

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Forwards vertical growth

A

This is where a supplier purchases a seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Diversification

A

This is where a business invests in something it has no relation to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Horizontal growth

A

Horizontal growth is where a business purchases another business at the same level as themselves.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Business plan

A

A business plan is a document that outlines what a business wants to achieve and how it will achieve it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Capital

A

Capital is the money raised from selling shares

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

Dividend

A

A dividend is money received by individuals from owning shares given by a business.

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

Entrepreneur

A

An entrepreneur is someone who takes the risk of starting up a business.

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

Characteristics of an entrepreneur

A

Risk taker
Determined
Creative
Confident

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

Stakeholders

A

A stakeholder is someone with an interest in the running of a business they can be external where they are outside of the business and don’t work for them if inside the business and works for it.

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

Examples of internal stakeholders

A

Owner(s)
Workers
Managers

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

Examples of external stakeholders

A

Government
Local community
Customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Sole trader

A

Someone who runs a business by themselves.

19
Q

Advantages of sole traders

A

Keep all profits to yourself able to make own decisions

20
Q

Disadvantages of sole traders

A

Hard to get time off unlimited liability

21
Q

Partnership

A

Where 2-20 people run a business together.

22
Q

Advantages of Partnership

A

Shared workload
Easier to get time off

23
Q

Disadvantages of Partnership

A

Shared profits
May take longer to make decisions
Unlimited liability

24
Q

Private Limited Company - LTD

A

Shares are given to people who you know

25
Q

Advantages of LTD

A

Limited liability
No worry from a merger/takeover

26
Q

Disadvantages of LTD

A

Dividends have to be payed.
Capital can’t be easily raised

27
Q

Public Limited Company - PLC

A

Shares are sold on the stock exchange

28
Q

Advantages of PLC

A

Capital can be raised easily
Unlimited liability

29
Q

Disadvantages of PLC

A

At risk of a takeover
Expensive to set up.

30
Q

Limited Liability

A

Where the bank is limited to only taking business owned assets to pay of any bankruptcy a business may have incurred

31
Q

Unlimited Liability

A

Where a bank can take personal assets to pay off any bankruptcy a business may have incurred

32
Q

Limited Liability Partnership

A

Where a partnership has limited liability

33
Q

Marketing

A

How a business advertises its products/services

34
Q

Merger

A

Where two business agree to become one

35
Q

Market Share

A

How much of the market they control/influence

36
Q

Takeover

A

Where a company forcibly takes over another company by purchasing a controlling share of a business shares.

37
Q

Operate

A

The activities, processes and systems that a company uses to deliver its products or services to customers and achieve its business objectives

38
Q

Profit

A

How much money a business makes after costs have been included.

39
Q

Providing a service

A

Where a business doesn’t sell a physical product but offers something else like a gardening service.

40
Q

Resources

A

What a business needs to operate successfully.

41
Q

Satisficing

A

Where business is making enough profit to keep shareholders happy or it’s sufficient for investors to maintain confidence in the management they appoint.

42
Q

Shareholders

A

Someone who owns shares in a Public Limited Company or Ltd.

43
Q

Sleeping partner

A

Someone who invests in a business but doesn’t interfere with the running.

44
Q

Spotting an opportunity

A
45
Q

Survival

A

Where a business is bandy managing to survive and continue trading.

46
Q

Success

A

Where the business owner is earning a good income to pay for utilities and leisure.

Business flash cards (4 decks)

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