Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business GCSE (EdExcel) > Theme 1 > Flashcards

Theme 1 Flashcards

You may prefer our related Brainscape-certified flashcards:
GCSE Religious Studies - Edexcel Route A flashcards GCSE Religious Studies - Eduqas Route A flashcards GCSE Geography - AQA flashcards GCSE Religious Studies - Edexcel Route B flashcards GCSE Religious Studies - Eduqas Route B flashcards
1
Q

Net cash flow

A

Cash inflow - cash outflow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Opening balance

A

Closing balance of previous period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Closing balance

A

Opening balance + net cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Interest (on loans)

A

Total repayment - borrowed amount / borrowed amount

X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Profit/ Loss

A

Total revenue - total costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Break-even output

A

Fixed costs/

Sales price - variable cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Margin of safety

A

Actual~ budgeted sales - break even in sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Revenue

A

Price x quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Total costs

A

T fixed costs + T variable costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the three reasons why business ideas come about

A

1) changing consumer needs
2) changing technology
3) obsolescence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Two ways in which new business ideas come about

A

1) Invention

2) Innovation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Definition of risk

A

The possibility that an enterprise will have lower than anticipated profits or experience a loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Definition of Reward

A

The achievement that an entrepreneur/ investor receives when a business succeeds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Three ways risk can impact a business

A

1) Business failure (e.g. fall in sales)
2) Financial loss (e.g lose belongings)
3) Lack of security (e.g. self employed)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Three ways reward impacts a business

A

1) Business success (e.g. personal satisfaction)
2) Profit
3) Independence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Definition of enterprise

A

A person/ organisation with the purpose of producing goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Definition of Entrepreneur

A

A person who starts a business despite the risks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Three roles/ purposes of a business

A

1) Purchase from suppliers
2) Produce goods or services
3) Sell to customers & make a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

5 ways a business can add value

A 
USP
Branding 
Better design
Convenience 
Quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Roles of an entrepreneur

A

1) To provide goods / services
2) To make a profit
3) Identify opportunities
+ show initiative
+ be innovative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The 4 customer needs

A

1) Price
2) Quality
3) Choice
4) Convenience

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

4 reasons for carrying out market research

A

1) Reduce risks in business decisions
2) Identify gaps in the market
3) Identify and understand customer needs
4) Identify and understand competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Primary research

A

Collecting info first hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Secondary research

A

Collecting data second-hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Qualitative data

A

Descriptive data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Quantitative data

A

Numerical data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Primary research (benefit)

A

More accurate

Specific to needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Primary research (drawback)

A

Costly

Time and resource consuming

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Secondary research (benefit)

A

Less time consuming than p r

Effective at getting quantitative data

30
Q

Secondary research (drawback)

A

Not specific and often not presented in a useful way

31
Q

Surveys (benefit and drawback)

A

+ Questions can be personalised and specific

- Reply rates are often low

32
Q

Questionnaires (benefit & drawback)

A

+ Data collected is usually easy to analyse

- You need well designed questions so that answers are reliable

33
Q

Focus Groups (benefit & drawback)

A

+ Range of options and qualitative answers

- Interviewer could influence answer

34
Q

Observation (benefit & drawback)

A

+ works well in retail & no influence

- you need to carry out a large number at different times

35
Q

Internet (benefit & drawback)

A

+ easy access

- unreliable source, origin and bias

36
Q

Market reports (benefit & drawback)

A

+ get info quickly

- costs

37
Q

Government reports (benefit & drawback)

A

+ free & lots of data

- might not suit marketer’s needs

38
Q

Definition of Market segmentation

A

Separating the market into groups of buyers with similar characteristics and buying habits

39
Q

Definition of market Mapping

A

Using a diagram to position and compare products in a market

40
Q

5 ways to segment the market

A 
Age
Lifestyle
Gender
Income
Location
41
Q

5 areas that could be strengths or weaknesses of competitors

A 
Quality
Price
Customer service 
Location 
Product range
42
Q

What is the impact of competition on business decision - making

A

Competition impacts business’ decisions on product differentiation so that they can avoid head-to-head competition

43
Q

5 financial aims & objectives

A 
Survival 
Sales & revenue
Profit
Market share
Financial security
44
Q

5 non-financial aims & objectives

A 
Personal satisfaction 
Independence 
Challenge
Business awards/ recognition 
Social benefits
45
Q

Difference between fixed & variable costs

A

Fixed costs= do not vary

Variable costs= vary with no. products made

46
Q

3 fixed costs

A

Rent
Insurance
Salaries

47
Q

3 variable costs

A

Raw materials
Delivery / shipping charges
Packaging

48
Q

3 reasons why cash is important to a business

A

1) Pay it’s suppliers and other debts
2) Pay wages to employees
3) Promote the business

49
Q

Overdraft ST (benefit & drawback)

A

+ useful in emergencies

- High interest rate for payback

50
Q

Trade Credit ST (benefit & drawback)

A

+ helps improve cash flow

- can get bad PR if dont pay back

51
Q

Personal Savings LT (benefit & drawback)

A

+ Don’t owe anyone

- Amount available is limited

52
Q

Venture Capital LT (benefit & drawback)

A

+ can get large investments contacts and advice

- give up a share of the business

53
Q

Share Capital LT (benefit & drawback)

A

+ doesn’t have to be paid back

- lose some/ all control of the business

54
Q

Loans LT (benefit & drawback)

A

+ once applied for quicker than share capital process & paid back in instalments
- pay interest

55
Q

Crowd Funding LT (benefit & drawback)

A

+ gain publicity if newsworthy

- investors will want something in return

56
Q

F & F Capital (benefit & drawback)

A

+ no interest

- could damage relationships

57
Q

What is the difference between limited and unlimited liability

A

Limited liability: the business and owner are separate

Unlimited: legally the same (loose personal assests)

58
Q

Consequences of limited liability

A

+ reduces risk

- accounts can be viewed by competitors

59
Q

Consequences of unlimited liability

A

+ accounts not made public

- more risk to personal assests

60
Q

Sole trader (benefit & drawback)

A

+ quick & easy to set up
+ 100% control
- unlimited liability
- a lot of pressure on one person

61
Q

Partnership (benefit & drawback)

A

+ shared risk
+ share ideas and experience
- profits shared
- partners may disagree

62
Q

Private Limited Company LTD (benefit & drawback)

A

+ limited liability
+ more trusted than other companies
- more complex set up
- published some financial info

63
Q

Franchising (benefit & drawback)

A

+ reputation already established
+ training & support given
- initial investment cost high
- owner has little freedom

64
Q

Three factors influencing the location of a business

A

1) Market (where customers are)
2) Competitors
3) Transport

65
Q

Identify the 8 stakeholders in a business

A 
Shareholders 
Managers
Pressure groups
Employees
Customers 
Local community 
Government 
Suppliers
66
Q

Name two possible conflicts between stakeholders

A 
Share holders (want profit) and Managers (want to invest profits and grow)
Workers (want higher pay) and Customers (want lower prices)
67
Q

Give 4 different types of technology used by businesses

A

1) E-commerce
2) Social Media
3) Electronic payment systems
4) Digital communication

68
Q

Definition of Legislation

A

The laws that a business must comply with

69
Q

Example of a consumer law

A

The consumer Rights Act 2015

Purpose to protect consumers

70
Q

Example of an employment law

A

Health and Safety at work Act (HASAWA)
Equality act
(To protect employees)

71
Q

Consumer law (benefit & drawback)

A

+ Good publicity if followed

- business must know the law and keep up to date

72
Q

Employment law (benefit & drawback)

A

+ employees happier and more motivated ( high productivity and customer service )
- meeting H & S regulations is costly

Business GCSE (EdExcel) (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions