Brainscape's Knowledge GenomeTM

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


See full index

Business studies Key terms > Topic 1 - Business activity > Flashcards

Topic 1 - Business activity Flashcards

1
Q

What does it mean by Factors of production

A

Factors of production are the resources that businesses use to provide their goods or services

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

What does it mean by Land

A

Physical land and natural resources a business may use

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

What does it mean by Labour

A

The employees: the number of employees and their skills

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

What does it mean by Capital

A

Equipment used to provide the goods and services e.g. technology or machinery.
We call this capital because capital (money) is spent on investing in these resources.

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

What does it mean by Enterprise

A

The ideas and skills of those involved in identifying business opportunities.
Entrepreneurs take risks to identify business opportunities.

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

What does it mean by Primary sector

A

First stage of production. Collection of raw materials e.g. fishing, farming, oil extraction

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

What does it mean by Secondary Sector

A

Second stage of production. They convert primary resources into finished goods e.g. manufacturers

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

What does it mean by Tertiary sector

A

Third stages of production. They provide services

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

What does it mean by Local business environment

A

The local population

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

What does it mean by National business environment

A

The UK as a whole

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

What does it mean by Global business environment

A

The world as a whole

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

What does it mean by Market

A

A place where buyers and sellers meet

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

What does it mean by Goods

A

Goods are tangible things that are produced e.g. TV

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

What does it mean by Services

A

Services are activities that other people or businesses do for you e.g. a holiday

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

What does it mean by Competitiveness

A

Different markets will have different levels of competitiveness. The more sellers in the market the more competitive it is likely to be.

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

What does it mean by Dynamic business environment

A

Is always changing e.g. with changes to technology and the economy.

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

What does it mean by Interdependent nature of business

A

How the functions of a business are linked and how they affect each other.

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

What does it mean by Entrepreneur

A

An entrepreneur is someone who; uses their initiative to identify a business opportunity, innovates to create a new business providing goods and services to customers and organises resources to create something customers value and are willing to pay for.

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

What does it mean by Social Enterprise

A

A social enterprise is a business that helps a particular cause.

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

What does it mean by Business Plan

A

A business plan sets out what a business does, and what it would likely to achieve in the future. It will include human resources, finances and marketing.

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

What does it mean by Sales Revenue

A

All the money made from sales

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

What does it mean by Profit

A

The amount by which a business’s revenue from all its sales exceeds its costs

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

What does it mean by Public sector

A

Businesses that are owned by the Government e.g. NHS, state schools. Their aims are usually socially driven – to help society.

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

What does it mean by Private sector

A

Businesses that are owned by a private individual. Their aim is usually to make a profit.

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

What does it mean by Consumer goods

A

Products bought to be used and consumed, such as drinks and clothes.

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

What does it mean by Producer goods

A

Bought to be used in the production process to make something else e.g. ingredients.

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

What does it mean by Durable goods

A

Goods that last for a period of time e.g. washing machine

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

What does it mean by Non-durable goods

A

Goods that are used up e.g. you eat an ice cream

29
Q

What does it mean by Personal services

A

Provided for the general public e.g. window cleaning

30
Q

What does it mean by Commercial services

A

Services provided for a business e.g. cleaning, catering for a canteen

31
Q

What does it mean by Sole traders

A

A sole trader describes any business that is owned and controlled by one person, although they may employ workers.

32
Q

What does it mean by Partnerships

A

Partnerships are businesses owned by two or more people.

33
Q

What does it mean by Deed of partnership

A

An agreement between partners that sets out the partnership such as how profits will be shared.

34
Q

What does it mean by Unlimited liability

A

This occurs when the personal possessions of the owners of the business are at risk if there are any problems. There is no limit to the amount of money the owners may have to pay out.

35
Q

What does it mean by Private limited companies (LTD)

A

An LTD cannot publicly advertise its shares for sale and is owned by family members and friends.

36
Q

What does it mean by Public limited companies (PLC)

A

A PLC can advertise its shares and its shares can be sold to anyone on the stock exchange.

37
Q

What does it mean by Stock exchange

A

A market for shares of PLC’s. Large numbers of shares are being bought and sold all the time.

38
Q

What does it mean by Flotation

A

When a LTD becomes a PLC and has all its shares listed on the stock exchange.

39
Q

What does it mean by Limited liability

A

Companies have limited liability. This occurs when there is a limit to the amount of money investors can lose; they can only lose the funds invested and not their personal possessions.

40
Q

What does it mean by Co-operative

A

This type of business exists when a business is owned and run by their members

41
Q

What does it mean by Charity

A

Is a non-profit making organisation that is set up for charitable purposes

42
Q

What does it mean by Shareholder

A

The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of these is called a shareholder

43
Q

What does it mean by Aim

A

A business aim is a general goal for a business

44
Q

What does it mean by Objective

A

A business objective is a specific target that is set for a business to achieve

45
Q

What does it mean by Stakeholders

A

Individuals and organisations that are affected by the activities of a business

46
Q

What does it mean by Footfall

A

How many people walk past the location

47
Q

What does it mean by Infrastructure

A

This refers to the transport, communication and support services that are available. It would include things such as road, public transport, airports

48
Q

What does it mean by Raw materials

A

Materials to be used in the production of a good e.g. wood, oil.

49
Q

What does it mean by Proximity to customers/suppliers

A

Closeness to customers / suppliers

50
Q

What does it mean by Market share

A

The proportion of a businesses sakes within its market

51
Q

What does it mean by Market capitalisation

A

A measure of a business by the value of its shares, this can give a business an indication of the size of the business.

52
Q

What does it mean by Turnover

A

Another way to measure the size of a business. Turnover is the total value of all the sales a business has made in a given time frame.

53
Q

What does it mean by Diversification

A

When a business sells new products in a new market

54
Q

What does it mean by Economies of scale

A

Occur when the cost per unit falls as a business expands

55
Q

What does it mean by Cost per unit

A

The cost of one product

56
Q

What does it mean by Internal growth

A

Where a business grows by selling more of its own products

57
Q

What does it mean by External growth

A

Where a business grows by joining with another business

58
Q

What does it mean by Franchising

A

Paying a franchise owner to open an established business

59
Q

What does it mean by Franchisor

A

Sells the franchise to the franchisee

60
Q

What does it mean by Franchisee

A

Buys the franchise from the franchisor

61
Q

What does it mean by e-commerce

A

Online trading

62
Q

What does it mean by Outsourcing

A

When a business uses another business to produce for

63
Q

What does it mean by Merger

A

Two or more businesses join together to form a new business

64
Q

What does it mean by Takeover / acquisition

A

When one business gains control of another

65
Q

What does it mean by Horizontal integration

A

Where a business joins with another at a different stage of the same stage of production

66
Q

What does it mean by Vertical integration

A

Where a business joins with another at a different stage of the same production process

67
Q

What does it mean by Backward vertical integration

A

Where a business joins with its suppliers

68
Q

What does it mean by Forward vertical integration

A

Where a business joins with its distributors

69
Q

What does it mean by Conglomerate integration

A

Where a business joins with another in a different type of production process

Business studies Key terms (6 decks)

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