Section 1 Flashcards
What is a primary sector?
Give me 3 examples
Where raw materials are collected
Fishing
Farming
Mining
What is a secondary sector? Give me 3 examples.
Where raw materials are being produced into products
Car manufacturing
Factories
Medicine testing
What is a tertiary sector?
Where the products are being sold to customers.
Cinema
Hairdresser
Supermarket
Which sector has gone up and why?
Tertiary sector
- population grown (more customers)
- more leisure time (time to spend)
- machine cannot to customer service ( more employees)(human contact is important)
- more money, therefore want more good as they can afford it
Which sector has gone down and why?
Secondary and primary sector
- raw materials already used up (also cheaper abroad)
- machines do job quicker
What is specialisation?
Give an example.
A business that focuses on one type of product
Disneyland focuses on only toys and cartoons (things for kids)
What is deindustrialisation?
A reduction in the size of primary and secondary sectors in an economy
What is added value?
Adding a value to the original product (price increases)
The value could be the brand
What is the SMART subject?
S- specific M- measurable A- agreed R- realistic T- time framed
What is the common business objective?
A mission statement - a phrase to tell the firm’s intention
What is a private sector?
An organisation owned and controlled by private individuals
E.g. HSBC, McDonald, Virgin
What is a public sector?
An organisation owned and controlled by the government
E.g. Schools and hospitals
What are the 6 business objectives?
Survival- survive and not shut down within 1 year
Profit- earning extra money
Returns to shareholders- returning the money that investors invested
Growth- develop into a bigger and better organisation
Market share- have a higher percentage share than other businesses
Providing customer service- more customers
What is PLC and what does it mean?
Public limited company
A company that allows te public (anyone) to buy shares from the company
What is LTD and what does it mean?
Private limited company
A company that only allows family and friends to buy shares (no one else)
What is a stakeholder?
People who are affected by a business and are involved
What are the 2 types of stakeholders ?
Internal stakeholder -
Involved in the business (inside the business)
External stakeholder-
People who are outside the business
What is industrial action?
Involving trade unions and strikes as there is a conflict between stakeholders
What is a capital?
Amount of money invested in a business
What is an incorporated business?
A business that is in a legal corporation
- contracts
- registering
- legal businesses
Which type of companies are incorporated business?
Big organisations/business
What is an unincorporated business?
Business that isn’t in a legal corporation
- no papers
- no registration
Which type of businesses are unincorporated businesses?
Small businesses
What is a sole-trader?
An individual who owns and controls their own business
What are the avantages of being a sole-trader?
- easy and cheap to set up business (no complicated forms)
- can make your own decisions
- competitors CANNOT see your account
- all profit goes to the owner
What are the disadvantages of being a sole-trader?
- unlimited liability (loss in business can affect owner’s personal life)
- difficult to find cover when I’ll
- if dies, business stops
- pays everything with own money
- different responsibilities, harder to handle
- no specialised skills
- work long hours for success
Give me 2 examples of who might have an unincorporated business?
Sole-trader
Partnership
What is a partnership?
When 2 or more people control a business together
What are the advantages of a partnership?
- more people have specialised skills
- competitors can’t see your account
- risk and responsibilities are shared
- easier to raise finance (money)
What are the disadvantages for a partnership?
- Unlimited liability
- argument and conflict
- trust issues
What is a sleeping partner ?
Someone that invest in business but isn’t involved in the activities of it.
What are the 4 main qualities a partnership should have?
- loyalty
- trust
- good communication
- compromising
What is a deed of partnership?
A legal document explaining how the partnership will work
- profit and losses sharing
- capitals of each partner
- duties of partners
- duration of partnership
- what will cause the termination of the deed (conflict? Loyalty?)
