section a Flashcards
enterprising
innovative, imagination etc
USP
the unique selling point of a business - makes them stand out, therefore, more customers e..g to be ethical
empowerment
sharing information, rewards and power with employees. puts them at the heart of the organisation
providing employees with a certain degree of power & control in their day to day activities
why might a business get fined
- not abiding by laws e.g. consumer protection act
- not operating ethically e.g. child labour
memorandum of association
- private limited company
includes company and directors - the official name&address of the registered offices, objectives of the company, number of shares bought etc.
calculating profit
profit = revenue - total costs
revenue
revenue = (selling price x quantity) - (variable costs + fixed costs)
variable costs
variable cost per unit x quantity
definition of variable costs
variable costs increase/decrease depending on a company’s output levels e.g. packaging, electricity, wages etc.
organisational charts
flat/wide structure
hierarchal/tall structure
break-even point
fixed costs ÷ (selling price - variable costs)
or
actual sales - margin of safety
business uncertainty
- change in technology e.g. automation
- economic factors e.g. interest & exchange rates
- change in demand
income statement
an income statement is produced by a business for a specific period of time. this is usually 12 months and produced at the end of the financial year. an income statement will include; revenue and expenses,
effects of interest rates
high-interest rates will mean that both businesses and consumers will cut back on spending. people will opt to save their money.
low-interest rates will encourage spending in consumers and businesses.
statement of financial position (balance sheet)
a balance sheet is a summary of the financial balances of a business, it represents the assets, liabilities and equity of a business.
SWAT
strengths, opportunities, weaknesses and threats in a business. swat analysis is great for assessing these four aspects of your business.
partnership act
the partnership act 1890 states that each partner is required to share the profits of the business equally, regardless of the amount contributed. each partner is jointly liable for losses suffered by the business.
