Brainscape's Knowledge GenomeTM

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


See full index

Business Paper 1 > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

Give 4 things that an entrepreneur needs to be

A
  • Resilient
  • Innovative
  • A risk taker
  • Self confident
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 2 financial motives for starting a business ?

A

Profit maximisation

Profit satisfycing

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

What is profit maximisation?

A

To gain the largest possible profit

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

What is profit satisfycing?

A

To just make enough profit to keep the business moving and working on another aim at the same time

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

What are 2 non-financial motives for starting a new business?

A

Autonomy

Ethical stance focus

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

What is autonomy?

A

To have full control

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

Give an example of a business with an ethical stance

A

Lush - Animal testing

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

What are the 3 advantages of home working?

A
  • flexible hours
  • no workplace cost (eg. travel/rent of premises)
  • low stress environment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the 4 disadvantages of home working?

A
  • no socialisation
  • may find it hard to switch off
  • hard to avoid distractions
  • too easy to become lazy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define uncertainty

A

When the business is unable to predict external shocks of future events

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

What is the aim of a business that when facing uncertainty?

A

To minimise the impact of the external shocks

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

If a household is facing uncertainty what may they do? And how will this affect businesses?

A

They may choose to save
This impacts businesses as they will not spend as much disposable income with the business and therefore this leads to a decrease in revenue for the business

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

A fluctuating currency can cause uncertainty, how can a business minimise this risk?

A

They could buy in the forward market in order to ensure certainty on what they owe, this could be more beneficial or lead the business to loose money in the future

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

How can a business minimise the risk of interest rates rising on a loan?

A

They may choose to get a fixed rate loan to ensure they know what they are paying back each month

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

Define -

Intrapreneurship

A

An employee who thinks like an entrepreneur

They solve problems, drives innovation and are proactive in adding value

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

Learning to delegate, listening to others, having an open mind, developing emotional intelligence and adopting formality
These are all traits of what moving to what?

A

Entrepreneur to leader

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

Define-

Leadership

A

The action of leading a group of people or organisation, or the ability to do this

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

Define -

Management

A

The process of dealing with or controlling things for people

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

Name the 3 types of organisational structures of a business

A

Tall
Flat
Matrix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In the chain of command which way do these travel…
Complaints
Orders

A

Complaints - up

Orders - down

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

Those at the top of the organisational structure have more…

A

Power and authority

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

What type of workers does the Matrix structure use?

A

Specialist

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

Utilises workers’ skills and experience regardless of position
Motivated workers in small groups working on a project
What type or organisation structure is this?

A

Matrix

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

In a business with a wide span of control what organisational structure would they have?

A

Flat

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

What organisational structure does a business have if the span of control is narrow?

A

Tall

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

Define-

Delegation

A

The transfer of responsibility down the chain of command

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

Give one benefit and one drawback to the manager working in a narrow span of control

A

✅ allows specialities

❌ more expensive - different levels of management have different levels of pay

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

Give one benefit and one drawback to the manager working in wide span of control

A

✅ more personal and direct control over subordinates

❌harder to ensure subordinates are kept in control

29
Q

Give one benefit and one drawback to the subordinate working in a narrow span of control

A

✅lots of promotion opportunities

❌more distanced from depiction making

30
Q

Give one benefit and one drawback to the subordinate working in a wide span of control

A

✅issues are resolved quicker - less layers

❌harder to get promoted - motivation decreases

31
Q

What is the type of leadership style that dictates to the employees what should be done and how it should be done?

A

Autocratic

32
Q

What type of leadership sees workers as dispensable and views them to be motivated my money and fear?

A

Autocratic

33
Q

What leadership style aims to include ideas and guidance from the employees and asking their opinions?

A

Democratic

34
Q

What method of leadership does the manager aim to have the best interest of the employees at heart?

A

Paternalistic

35
Q

What 2 styles of leadership can be linked to Mayo’s theory of motivation?

A

Democratic

Paternalistic

36
Q

What leadership style allows workers to get on with it?

A

Laissez-faire

37
Q

What industries are most likely to see laissez-faire to be the leadership style?

A

Creative industries

38
Q

What happens to motivation levels of staff if there is an autocratic leadership for the long term?

A

Motivation will drop because their opinions and views are not taken into account

39
Q

What 7 steps are the recruitment process made up of?

A

1) Identify there is a vacancy
2) Write a job description and person specification
3) Advertise the job
4) Candidates apply
5) Shortlist candidates
6) Interviews
7) Choosing the candidate and training

40
Q

What are the two ways a business can advertise jobs

A

Internally or externally

41
Q

What are the 2 ways candidates apply for a job

A

CV or Application form

42
Q

What 3 ways can interviews be conducted?

A

Skype
Face to face
Phone

43
Q

What is a strength and weakness of an application form for a business?

A

✅Quick - get what they want to know

❌time and money to produce

44
Q

What is a benefit for an individual of handing in a CV?

A

They can display all of the positive qualities about themselves - they choose

45
Q

What are 2 drawbacks of handing in a CV to an individual when applying for a job?

A

It’s hard to stand out

May miss key information about themselves

46
Q

What is a benefit of asking for CVs for a business

A

They don’t have to spend time and money creating a form

47
Q

What is a drawback to a business of asking for CVs

A

They are long and may not always show the desired information

48
Q

Name the 3 types of training

A

Induction training
On the job
Off the job

49
Q

Having to pay for 2 people to do 1 persons job is a negative of what type of training

A

On the job

50
Q

Which is the cheapest type of training?

A

On the job training

51
Q

Which training offers the highest quality?

A

Off the job training

52
Q

Which is the most expensive training?

A

Off the job training

53
Q

External recruitment is cheaper than internal recruitment

True or False

A

False - Internal is cheaper as it can be advertised through company newsletter

54
Q

Which form or recruitment is most likely to bring new ideas, new energy and new skills into a business

A

External recruitment

55
Q

What is the average time it takes to hire someone and get them into the job?

A

24 weeks

56
Q

What hidden costs could be included in recruitment

A

20% of all new employees leave within the first year (average)

57
Q

Define-

Sole trader

A

A person who has complete ownership of the business

58
Q

Define-

Partnership

A

An operation between 2 or more individuals in owning and running a business

59
Q

Define -

Ltd

A

Private limited company

A small business such who doesn’t sell shares on the stock market but to family and friends

60
Q

Define -

Franchise

A

The authorisation granted you a company for an individual to trade and sell their products under their name

61
Q

Define-

Plc

A

Public limited company

A company who’s shares are traded on the stock exchange and can be brought and sold by anyone

62
Q

Define -

Social enterprise

A

A business who’s primary objective isn’t profits but something else within the community

63
Q

Which 2 businesses have unlimited liability

A

Sole trader

Partnership

64
Q

Define unlimited liability

A

Unlimited liability is when the business owner has personal responsibility for the businesses debt

65
Q

Define -

Limited liability

A

Limited liability is when the business owner only has to pay out the money that they put into the business

66
Q

What is a benefits for the employer of playing commission (2)

A

Employer isn’t paying for when employees aren’t selling

Motivates employees to sell more

67
Q

Who believed in a fair days pay for a fair days work?

A

Taylor - scientific management

68
Q

What was Mayo’s theory?

A

Human relations theory

69
Q

What did the human relations theory suggest?

A

That non-financial motivators were the most important - for example working in teams and job rotation

Business Paper 1 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions