Term 1 Assesment Flashcards
Enterprise
Another word for business/Actions of an entrepreneur e.g initiative or risk taker
Oppertunity cost
The benefits you lose of the option you don’t choose
Economic uncertainty
People hold back when spending so less sales
Operations management
Takes care of a business’ structure to be efficient
Added value
When a business adds value by production
Unincorporated
The owner is the business so has unlimited liability
Incorporated
The companies are a separate legal identity to their owner so can get limited liability
International companies
Importes and exportes internationally but has no stakes abroad e.g whitehouse flexible tubing
Multinational companies
Companies with investment abroad like e.g factories or hq
Conglomerate growth
When the acquisition is unrelated to the business
Strategic alliance
An arrangement where companies share resources to undertake a mutual beneficial venture e.g off white and Nike shoe collab
Synergy
Combined value of 2 companies is better than them both alone together
SMART
Specific measurable achievable realistic time
Pestele
Political economic social technological ethical legal environment
6 marker
K,App,App,An,An,An
Relationship of supply and price
Price goes up whilst supply goes up if demand remains the same
Relationship of demand and price
As demand goes up so price goes down visa versa supply stays the same (Cerberus parebus)
Equilibrium price
When demand is equal to supply so shops have no unsold stock however no shortage
Relationship between price and demand
Inverse-as price goes up less people want
Relationship between quantity and demand
Positive- demand connects how much quantity will be demanded at each price so a shift right of demand curve causes quantity demanded increase
Wealth
Value of someone’s assets
Complements
A product that comes with another like tennis racket and tennis ball so as demand goes up for one it does with the other
Tax
Compulsory payment to the government
Subsidy
A grant so payment from the government to an individual
Market forces
Supply and demand
Elastic graph steep or flat?
Flat
Inelastic graph steep or flat?
Steep
Oligopoly
When a market is dominated by a few firms
Monopoly
When a market is dominated by one firm with 25% market share or more
Competitive market
Competes on price and has many sellers
Market size
Revenue of all sales in a market
Market growth
Percentage change in the size of a market (total revenue of market) measured over a specific period
CPA
Critical path analysis
Total float formula
LFT(this activity) - duration -EST(this activity)
Free float formula
EST(next activity) - duration - EST(this activity)
