Brainscape's Knowledge GenomeTM

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


See full index

Business Studies > march 2021 revsion - Unit 1 > Flashcards

march 2021 revsion - Unit 1 Flashcards

1
Q

Characteristics of an entrepreneur

A
  • confidence
  • creativity / shows initiative
  • risk-taker
  • determination
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Purposes of business enterprise and entrepreneurship

A
  • spotting an opportunity
  • developing an idea
  • satisfying customer needs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is on a Business plan

A
  • identify market ( age, gender, income)
  • identifying resources ( workers, type of equipment/machinery)
  • identify the finance needed to start up or grow the business ( selling shares, obtaining a loan or overdraft)
  • achieve business’ aims & objectives (making profit, expected sales)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What objectives in business planning is also included?

SMART

A
  • Specific - clearly state what is to be achieved
  • measurable - how to measure success ( sales / profits )
  • achievable - are the targets possible to achieve?
  • realistic - appropriate ?
  • timely - deadline to complete targets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advantages of soletrader

A
  • less forms to complete ( easy to set up )
  • decision maker (easy to control )
  • profits/information remain private
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Disadvantages of being a sole trader

A

Continuity - stops when owner dies
Raising finance - Only 1 person to invest savings & banks may think they are risky to lend to. Cannot sell shares to raise finance
Liability - owner has unlimited liability

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

Advantages of partnerships

A

Easy to set up - only needs a deed of partnership
Easy to control - make decisions between themselves
Business info - info about profits remain private
- Workload is shared
- Many ideas

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

Disadvantages of partnership

A
  • partners may disagree
  • profits shared
  • deed of partnership will be needed if someone leaves or joins
  • banks think risky to lend to
  • cannot sell shares to raise finance
  • unlimited liability
  • fewer the workers, the greater workload of each
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Advantages of private limited company

A

Easy control - shareholders can restrict who can buy shares
Continuity - business continues if shareholders sell their shares or die
Raising finance - Banks are willing to lend. Larger amounts can be raised.
Level of liability - limited liability

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

Disadvantages of private limited companies

A
  • easy to set up - Register of Companies requires legal documents , takes time
  • Business info - public can see info
  • workload - managers needed to make decisions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Advantages of public limited companies…

A
  • continuity - business continues after shareholder dies or sell their shares
  • raising finance - larger amounts of money can be raised, new shareholders can invest - bank willing to lend
  • limited liability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Disadvantages of public limited companies

A
  • easy to set up - The Register of Companies requires legal documents , time consuming
  • easy control - anybody can buy shares (via Stock Exchange)
  • Business info - public access info
  • workload. - managers are employed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Suitability of a sole trader

A
  • only need small amount of finance
  • low financial risk
  • require limited or non-specialist skills
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Suitability of partnership

A
  • larger amount of finance
  • fairly low financial risk
  • wider range of skills
  • owners who want to keep control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Suitability of private limited company

A
  • larger amount of finance
  • increased / high financial risk
  • owners who wish to keep control of business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Suitability of public limited company

A
  • wishes to grow
  • very large amounts of finance
  • very high financial risk
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the different business objectives

A
  • survival
  • profit
  • growth
  • providing a service
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Summarise survival as a business objective

A
  • business’ ability to trade in the long term

- may survive for a short period of time without making a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Summarise profit as a business objective

A
  • reward to owners for taking a risk by investing their money into the business
  • seek to maximise profits for the benefits of the owners
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Summarise growth as a business objective

A
  • increase sale or market share

- a way of increasing profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Summarise providing a service as a business objective

A
  • owners want satisfaction of giving customers a good service
  • seen as making a profit as customers will return and new customers will use the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Why will business’ objectives change?

A
  • at a different stage of development
  • owners have different motivation
  • influenced by market conditions
  • experiencing different economic conditions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Why will a business’ objective be survival?

A
  • objective for new business , so that it can become established and secure by gaining customers and aim to make profit in the longer term
  • during a downturn in economic activity or when a market is very competitive
24
Q

Why will a business’ objective be profit

A
  • new businesses may seek a minimum lvl of profits to help them survive
  • established businesses may want to earn profits to reinvest and to expand a business
  • good profits encourage new investors to put money in the business, helping it grow
25
Q

Why will a business’ objective be growth

A
  • new businesses may set objectives for the growth of sales or market share to help them survive
  • established businesses may want to grow to gain more power in the market, reduce competition and increase profits
26
Q

Why will a business’ objective bee providing a service

A
  • good reputation enabling it to attract new customers as well as retain existing customers
  • help a business survive or increase its profits
  • some owners get satisfaction from running a business that is useful to its customers
27
Q

Who are the internal stakeholders of a business

A
  • owners

- employees

28
Q

What is the role and objectives of owners

A

Role :
- provide finance to start & expand a business
- manage or run the business or employ managers to run on their behalf
Objective:
- make profits

29
Q

What is the role and objectives of employees

A

Role:
- produce goods and services
Objectives:
- be treated fairly by employers
- satisfaction of having a job and earning income
- enjoyment of social aspects of working with colleagues

30
Q

Who are the external stakeholders of a business

A
  • customers
  • suppliers
  • government
  • local community
31
Q

What are the role and objectives of customers

A 
Role:
- buy goods and services
Objectives:
- pay affordable prices
- enjoy the benefits provided by goods and services
32
Q

What are the role and objectives of suppliers

A 
Role:
- sell goods for resale or components and materials needed to manufacture goods or provide a service
Objectives:
- make sales
- earn profits
33
Q

What are the roles and objectives of the government?

A

Role:
- help businesses, workers & communities
Objectives:
- encourage businesses (leads to high employment & prosperous communities)
- encourage businesses because this increases the taxes paid to the government

34
Q

What are the roles and objectives of the local communities

A

Roles:
- provide workers
- monitor & influence business activities
Objectives:
- have a local area which is prosperous, healthy and safe

35
Q

What are the benefits to the owner of business activity

A

earn profits is business is successful

36
Q

What are the problems to the owner of business activity

A

may lose money invested if business fails

37
Q

What are the benefits of business activity on employees

A

provides them a job which allows them to earn income from the business

38
Q

what are the problems of business activity on employees

A
  • may be made redundant if business is failing or replaced by automation
  • employment conditions may be unfair, causing stress
39
Q

what are the benefits of business activity on customers

A

obtain products & services at good prices that satisfy their wants

40
Q

what are the problems of business activity on customers

A
  • sold poor quality goods / services
  • over-charged
  • experience poor customer service
41
Q

what are the benefits of business activity on suppliers

A

sell goods to another business and earn profits from doing this

42
Q

what are the problems of business activity on suppliers

A
  • may lose money if the business does not pay for the goods supplied
  • cash flow problems in the business may mean that they delay payment to their suppliers
43
Q

what are the benefits of business activity on the government

A

receive tax revenue from the owners, workers, suppliers and customers of the business

44
Q

what are the problems of business activity on the government

A

very large companies can become ‘too big to fail’ - the government may be criticised if the business fails and the government does not step in to help it survive

45
Q

what are the benefits of business activity on the local community

A

earn money from jobs with the business or because workers in the area have money to spend in their business

46
Q

what are the problems of business activity on the local community

A

affected by negative externalities such as pollution and road congestion caused by the business

47
Q

ways a business can grow organically

A
  • increasing output
  • gaining new customers
  • increase market share
  • develop new products
48
Q

How does a business increase output

A
  • use resources more efficiently, e.g using new technology or training workers
  • use up spare capacity, e.g unused factory space
  • increase capacity of the business, e.g building a new factory, opening new shops.
49
Q

How does a business gain new customer?

A
  • reduce its prices
  • open new shops in different location
  • better marketing, e.g a bigger, more effective advertising campaign
50
Q

How does a business increase market share?

A
  • increase its own sales
  • taking business from other firms ( a firm could keep sales constant but its market share would rise if other businesses sell less)
51
Q

How does a business develop new products?

A
  • researching and developing
  • copying the ideas of other businesses
  • buying ideas from the other businesses
52
Q

How can a business grow externally

A
  • horizontal growth
  • diversification
  • backward vertical growth
  • forward vertical growth
53
Q

Benefits of horizontal growth (furniture manufacturer joins another furniture manufacturer)

A
  • each factory can specialise in a particular type of furniture
  • one factory could be closed if not needed, reducing costs
  • it can gain economies of sale, reducing costs
54
Q

Benefits of diversification (furniture manufacturer joins a perfume manufacturer)

A
  • risk is spread, success does not rely only on furniture sales
55
Q

Benefits of Backwards vertical growth (furniture manufacturer joins a timber merchant)

A
  • it guarantees supply of wood to make the furniture

- the manufacturer can benefit from the timber merchant

56
Q

Benefits of a forward vertical growth (furniture manufacturer joins a furniture retailer)

A

the manufacturer is guaranteed somewhere that will sell what it produces to consumers

Business Studies (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions