Brainscape's Knowledge GenomeTM

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


See full index

Yr11 Business Studies > Nature of Business > Flashcards

Nature of Business Flashcards

1
Q

What is purpose of Research and Development

A

Creation of new products (invention) and improvement of existing ones (innovation)

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

What is a person who transforms their ideas into a new business

A

Entrepreneur

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

What is quality of life

A

Well being of an individual, and is a combination of

material and non-material benefits.

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

Business purpose

A

Provide goods and services to satisfy wants and needs

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

Three benefits of business to economy

A

Provide employment
improves quality of life
provides income for owner

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

Functions of business

A 
Choice
Profit
Incomes
Entrepreneur and risk
Wealth Creation in economy
Quality of life
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Main ways of classifying business

A

geographical spread
Industry sector
Legal structure
Size

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

Types of geographical spread

A

Local
National
Transnational
Global

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

Types of industry

A

Primary
Secondary
Tertiary (quaternary, quinary)

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

what is primary industry

A

Deals with raw materials e.g. mining/fishing

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

What is secondary industry

A

Businesses that take output of firms in primary industry and produce into finished/semi finished goods/services e.g. manufacturing

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

What is tertiary industry

A

Provides a service

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

What is Quaternary industry

A

Service that involves transfer and processing of information

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

What is Quinary industry

A

Services that have traditionally been performed at home

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

Types of legal structure

A

Sole trader
partnership
private company
public company

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

What is incorporated business

A

private/public company. business is separate legal entity limited liability

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

What is unincorporated business

A

Sole trader/partnership business has unlimited liability

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

How many people in most partnerships

A

2-20

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

Difference between private and public company

A

Public is listed on stock exchange private is not

20
Q

Reasons for choice of legal structure

A

size of business
ownership structure
finance

21
Q

different sizes of business

A

micro
small
medium
large

22
Q

number of employees for each business

A

micro 5
small 5-20
medium 20-199
large 200+

23
Q

external influences in business environment

A 
Financial 
Government
Economic
Legal
Social
Political
markets 
competitive situation
24
Q

internal influences in business environment

A 
Product
location
management
resource management
stakeholders
business culture
25
Q

Location factors

A

visibility
proximity to suppliers
proximity to customers
cost

26
Q

Types of business resources

A

Human
information
physical
financial

27
Q

management influences

A

business structure flatter or hierarchical

28
Q

Main stakeholders in business

A 
Society
employees
managers
shareholders
customers
environment
29
Q

Main stages of business life cycle

A

establishment
growth
maturity
post-maturity

30
Q

Establishment stage features

A 
sales are erratic
generating positive cash flow
high fixed cost
failure rate high
small employee number and customer base
31
Q

Growth stage features

A

expanding too rapidly
business diversifying
production costs decrease due to economies of scale

32
Q

difference between mergers and acquisitions

A

merger 2 businesses combine and acquisition one business acquires another

33
Q

Maturity features

A

business growth slows
sales plateau
costs need to be controlled
business must avoid complacency

34
Q

Main outcomes of post-maturity stage

A

steady state-business continues
decline-business fails
renewal-increase in sales and profits

35
Q

Factors that contribute to business decline

A

Lack of management expertise

Lack of sufficient money

36
Q

Difference between voluntary and involuntary cessation

A

voluntary- business decides

involuntary- forced by other

37
Q

What happens when unincorporated business goes fails

A

Bankruptcy (voluntary or involuntary)

38
Q

What is bankruptcy

A

declaration business or person is unable to pay their debts

39
Q

What happens when company fails

A

placed in voluntary administration then if that fails placed into voluntary or involuntary cessation, then liquidation

40
Q

What is voluntary administration

A

When person takes over business with hope of saving the business

41
Q

What is liquidation

A

When business assets are turned into cash to pay back creditors

42
Q

what is product life cycle

A

intro
growth
maturity
decline/product extension

43
Q

Types of business expansion

A

horizontal/vertical integration, diversification

44
Q

what is vertical integration

A

movement along supply chain

forward/backward

45
Q

what is horizontal integration

A

acquiring another business

Yr11 Business Studies (4 decks)

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