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Business > Real World > Flashcards

Real World Flashcards

1
Q

What are stakeholders

A

Someone who is interested by a businesses decisions

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2
Q

Factors affecting location

A

Supplier
Competition
Location of market
Labour supply
Cost

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3
Q

What is enterprise

A

Involves identifying new business opportunities and taking advantage of them. Spotting a gap in the market

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4
Q

Characteristics of entrepreneurs

A

Hard working
Calculated risk
Organised
Innovative

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5
Q

Factors of production

A

Land
Labour
Capital
Enterprise

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6
Q

What is opportunity cost

A

Benefit given up in order to do something else

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7
Q

Advantages of sole trader

A

Easy to set up
Your own boss
You decide what you want to do with profit

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8
Q

Disadvantages of sole trade

A

Long hours and little holiday
Unlimited liability
Unincorporated(business does not have its own legal identity)
Hard to raise profit

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9
Q

How many partners can be in a partnership

A

2-20

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10
Q

Advantages of partnerships

A

More owners-more ideas/range of skills
Share the work
More capital

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11
Q

Disadvantages of partnership

A

Legally responsible for other partners descions
Unlimited liabillity
Decreased income

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12
Q

What are the two types of companies

A

Private
Public

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13
Q

Private company advantages

A

Limited liabillity
Easier to get loans or mortgage
Owners keep control

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14
Q

Private company disadvantage

A

More expensive
Legally obliged to publish account

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15
Q

PLC(public) advantages

A

Much more capital
Helps company expand and diversify
Limited liabillity

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16
Q

PLC(public) disadvantages

A

Hard to agree on decisions(a lot of shareholders)
Easy for individuals to buy all shares
More shareholders-less profit per person

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17
Q

Examples of not for profit organisation

A

Help community
Charity
Fund projects

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18
Q

Why do businesses use aims and objectives

A

Monitor success

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19
Q

Examples of stakeholders

A

Local community
Employees
Customers
Governments

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20
Q

What is revenue

A

Income earned by a business

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21
Q

Equation for revenue

A

Revenue=sales x price

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22
Q

What are fixed cost and examples

A

They don’t vary with outcome
Insurance
Fixed salaries

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23
Q

What are variable cost

A

Will increase if a fir expands output

24
Q

How to calculate total cost

A

Total cost=variable cost+fixed cost

25
Q

Average unit cost

A

How much each products costs to make

26
Q

Average unit cost equation

A

Average unit cost=total cost divide output

27
Q

How to calculate profit

A

Profit=revenue-costs

28
Q

What are the 7 sections of a business plan

A

Personal details
Mission statement
Objectives
Product description
Product details
Staffing requirements
Finance

29
Q

Drawback of a business plan

A

Cost time and have a cost

30
Q

What is economies of scale

A

Buys from supplier in bulk to get a cheaper unit price

31
Q

Diseconomies of scale

A

Where are areas grown can lead to increases in average unit cost

32
Q

Internal expansion

A

When a business grows by expanding it’s own activities

33
Q

Internal expansion description

A

Low risk but slow

34
Q

E-commerce

A

Act of buying and selling goods online

35
Q

M-commerce

A

Act of buying and selling goods on handheld devices

36
Q

Outsourcing

A

Paying other firms to carry out tasks it could do itself

37
Q

Franchising

A

Where a company expands by giving other firms the right to sell its product(or use it’s trademark)

38
Q

Benefits of franchising

A

Increases market share
Increases brand awareness

39
Q

External expansion

A

Using other businesses to expand

40
Q

Examples of external expansion

A

Merger
Take over

41
Q

What is a merger

A

Two firms that join together to form a new larger firm

42
Q

What is a take over

A

Existing firm expands by buying more than half the shares in the other firm

43
Q

What is a social enterprise

A

A business that is set up to help society rather than make a profit

44
Q

What is a gap in the market

A

When a group of consumers have a need for a new product that is not being supplied by existing business

45
Q

What are the four factor of production(CELL)

A

Capital
Enterprise
Land
Labour

46
Q

What is opportunity cost

A

What is given up as a consequence of a particular decision of choice

47
Q

What is the primary sector and examples

A

The first stage of production, examples include agriculture, forestry, mining.

48
Q

What is the secondary sector and examples

A

Converts resources from the primary sector into products, examples include car manufacturing, construction

49
Q

What is the tertiary sector and examples

A

Comprises businesses that supplies services, examples include education and health care.

50
Q

What are characteristics of entrepreneurs

A

Willingness to take risks
Hardworking and committed
Innovative
Organised

51
Q

What is interest rate

A

The cost of borrowing money or the reward for saving money, expressed a percentage

52
Q

What is exchange rate

A

The price of one currency expressed in terms of another, for example £1 - $1.50

53
Q

What are the 4 functions of a business

A

Operations-involves producing a good or service
Marketing-a business will succeed if it understands what it’s customers want and supplies these products
Human Resources-all businesses employ people so they have to be managed
Finance-business depend on money so they have to raise it to function

54
Q

What is globalisation

A

The trend for markets to become worldwide in scope

55
Q

What is a business plan

A

A document setting out what a business does and what it hopes to achieve in the future

56
Q

What are the advantages of business planning

A

It offers opportunities for planners to think analytically about their business using data that has been gathered for this purpose
It can help to persuade stakeholders(such as potential investors)that the business has been thought through and should succeed
It includes targets by which the business’s progress can be monitored. This helps managers to make good-quality decisions at the right times

Business (7 decks)

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