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Business A292 > The need for business activity > Flashcards

The need for business activity Flashcards

1
Q

What is the Primary Sector and three examples?

Pg. 1.1

A

The first stage of production involving producing or extracting raw materials for other businesses to use

  • Fishing
  • Farming
  • Mining/Quarrying
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2
Q

What is the Secondary Sector and three examples?

Pg. 1.1

A

The second stage of production involving using raw materials to manufacture products

  • Car manufacturing
  • Furniture manufacturing
  • Electrical Appliance manufacturing
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3
Q

What is the Tertiary Sector and three examples?

Pg. 1.1

A

The third sector of business activity involving providing a service for customers

  • Retailing
  • Banking
  • Hotels
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4
Q

How has the Primary Sector changed and five reasons why?

P 1.3

A

Decreased:

  • Less important
  • Fewer people employed
  • Raw materials used up
  • Use of machinery to replace jobs
  • Foreign competition
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5
Q

How has the Secondary Sector changed and three reasons why?

Pg. 1.3

A

Decreased:

  • Fall in importance (more imports/less exports)
  • Use of machinery to replace jobs (quicker, no wages…)
  • Foreign competition (cheaper labour, more imports)
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6
Q

How has the Tertiary Sector changed and three reasons why?

Pg. 1.3

A

Increased:

  • Rise in importance
  • More competition
  • New jobs created (wealth/population increase, leisure)
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7
Q

What is a stakeholder?

Pg. 1.4

A

An individual or group of people who have an interest or concern in a business

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8
Q

Three examples of internal stakeholders:

Pg. 1.4

A
  • Owners
  • Managers
  • Workers
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9
Q

Three examples of external stakeholders:

Pg. 1.4

A
  • Internet and pressure groups
  • Customers
  • Suppliers
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10
Q

Owners/shareholders interest in the business as a stakeholder (two reasons):
Pg. 1.5

A
  • High profit to gain dividends

- Business to grow, survive and make a profit

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11
Q

Managers interest in the business as a stakeholder (three reasons) and conflicts with another shareholder and why?
Pg. 1.5

A

-Business to beat competitors
-Business to be as efficient as possible
-Business to meet all objectives
Workers - higher wages/shorter hours
Manager - lower wages/shorter hours
Solution - work longer hours for more money
Most power - Managers

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12
Q

Workers interest in the business as a stakeholder (three reasons) and conflicts with another shareholder and why?
Pg. 1.5

A

-Job security
-High wages/ good working conditions
-Business to continue, grow and make a profit
Local community - wants job in other areas
Workers - secure job if business moves
Solution - secure job if business moves to other areas

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13
Q

Customers interest in the business as a stakeholder (three reasons) and conflicts with another shareholder and why?
Pg. 1.5

A

-Low prices/high quality
-Easy locations
-Choice and variety
Owners/shareholders - high prices
Customers - cheap prices/high quality
Solution - prices depending on quality/ offers/discounts
Most power - Customers

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14
Q

Suppliers interest in the business as a stakeholder (three reasons) and conflicts with another shareholder and why?
Pg. 1.5

A

-Paid on time
-Good contract with the business
-Large orders
Managers - cheapest deal (prices)
Suppliers - highest possible payment
Solution - negotiation/ bulk buying discounts
Most power - Managers

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15
Q

Local Community interest in the business as a stakeholder (three reasons) and conflicts with another shareholder and why?
Pg. 1.5-6

A

-Wants jobs
-Low noise/ pollution
-Business to contribute/ support local events
Owners - bigger shops, more customers
Local Community - low noise/pollution
Solution - Bigger shops, more jobs/ business support
Most power - Owners

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16
Q

Government interest in the business as a stakeholder (three reasons) and conflicts with another shareholder and why?
Pg. 1.5

A

-Business to help raise the economy
-Business to create jobs
-Business to pay more in taxes
Pressure groups - environmentally friendly businesses
Government - big businesses help raise the economy
Solution - support environmentally friendly businesses
Most Power - Government

17
Q

Pressure groups interest in the business as a stakeholder (four reasons) and conflicts with another shareholder and why?
Pg. 1.5

A

-Land to be protected
-Low pollution
-Business to be environmentally friendly
-Specific interests
Owners/shareholders - more produce, more profit
Pressure groups - fair trade products
Solution - Support fair trade (advertise)
Most Power - Owners/shareholders

18
Q

What is a mission statement?

Pg. 1.7

A

A mission statement explains the main purpose of the business and the activities it is doing to achieve this

19
Q

What is an aim and three examples?

Pg. 1.8

A

An aim is a long term goal/purpose or intention

  • Survive as a business or expand
  • Make a profit
  • Maximise sales
20
Q

What is a private sector?

Pg. 1.8

A

Private sector is an organisation that is owned by someone for their own benefit, to make a profit

21
Q

What is a public sector and two examples?

Pg. 1.8

A

Public sector is an organisation run by the Government for the benefit of society

  • NHS
  • Police force
22
Q

What is an objective and three examples?

Pg. 1.9

A

An objective is a short term target you set to help you meet your aims

  • Improve quality of service
  • Provide more products
  • Increase market share by 10%
23
Q

What are SMART objectives?

Pg. 1.9

A

Specific - exactly what needs to be done to succeed
Measurable - to measure whether the objective is met
Achievable - something the business can achieve?
Realistic - does the business have enough resources?
Time specific - time frame of objective

24
Q

What are profit objectives (two) and example?

Pg. 1.10

A

Main objective is profit :
- By maximizing profits, maximize gaining of money
- Gaining enough profit for future plans (satisficing)
Charities maximize funds for their cause (social enterprise)

25
Q

What are growth objectives and two examples?

Pg. 1.10

A

Growth objective is a way to raise profits, more important to large companies which need growth to pay dividends to their shareholders (elimination of competitors)

  • Sales growth - increase profit
  • Increased market share - market share grow
26
Q

What are survival objectives (three)?

Pg. 1.10

A
  • New businesses need to survive to carry on
  • Established business need to survive if faced with problems, e.g. recession
  • Temporary, vital objective
27
Q

What is providing a service objective (three)?

Pg. 1.10

A
  • The better the service, more customers
  • Customer satisfaction priority
  • Good service, good reputation
28
Q

What is a social enterprise?

Pg. 1.11

A

Social enterprises usually have aims and objectives targeted at helping people in society

29
Q

Why do business objectives change over time (four)?

Pg. 1.11

A
  • Completed objectives
  • Change of interest/ownership/desire
  • Competitors
  • Market environment/ conditions (recession = survival)
30
Q

What do business objectives depend on (two)?

Pg. 1.12

A
  • Type/size of business

- Stage of development

31
Q

What is interdependence?

Pg. 1.2

A

Interdependence is sectors needing one another to function

Business A292 (4 decks)

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