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Business Studies > topic 1 Business In The Real World > Flashcards

topic 1 Business In The Real World Flashcards

1
Q

Goods

A

A physical product (something you can touch)

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2
Q

Customer

A

Someone who pay/buys for the product

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3
Q

Entrepreneur

A

Someone who is willing to take risks involved in starting a business

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4
Q

Service

A

An intangible product (something you can’t touch) e.g. bus journey

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5
Q

Consumer

A

Someone who uses goods or services produced by businesses

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6
Q

Social entreprise

A

A business that is set up to help society rather than to make profit

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7
Q

Business

A

An organisation that provides a good or supplies and services

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8
Q

Types of liability

A

Unlimited and limited liability

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9
Q

Unlimited liability

A

If a problem occurs, the owners personal possessions will be lost

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10
Q

Limited liabilty

A

The owner only loses the amount invested in the business

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11
Q

What are the forms of business?

A

Sole trader, partnership, comapnies (PLC, LTD) and not-for-profit organisations

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12
Q

Private sector organisations

A

Owned by individuals. These businesses are driven by profit.

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13
Q

Public sector organisations

A

An organisation owned by the government they provide goods and services for the benefit of the community not for profit but instead they operate with money raised from taxes

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14
Q

What is an objective?

A

A specific target that turns the aim into something that is easier to measure and assess progress

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15
Q

What is aim?

A

A general goal of a business

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16
Q

Survival

A

A business that has survived even if they lowered the price and made lower profits

17
Q

Profit maximisation

A

Earning a profit is how much a business makes (revenue) minus the cost (e.g. paying employees)

18
Q

Growth

A

A business that grows and opens more stores to sell more products to increase revenue

19
Q

Market share

A

A business that focuses to increase market share and put the business at a vantage point

20
Q

Customer satisfaction

A

Business that focuses on achieving a particular level of customer satisfaction by providing a better service or a wider range of products than their competitors. Hoping they would get more profits in the long run (meaning customers would come back and tell their friends to gain more customers)

21
Q

Internal Growth

A

(Also known as Organic Growth) occurs when a business gets bigger by selling more of its products

22
Q

External Growth

A

(Also known as integration) occurs when a business gets bigger by joining or buying other businesses.

23
Q

Franchise

A

A franchise occurs when a frachisor sells the right of its product to a frachisee; this is usually in return for a fee and a percentage of a turnover

24
Q

Franchisee

A

A franchisee buys a franchise usually in return for a fee and percentage of turnover

25
Q

Franchisor

A

A franchisor sells a franchise usually in return for a fee and percentage of turnover

26
Q

Merger

A

A merger occurs when two or more businesses join together to form a new business

27
Q

Takeover

A

A takeover (or acquisition) occurs when one firm gains control of another and buys it up.

28
Q

Horizontal integration

A

It occurs when one firm joins with another firm at the same stage of the same production process

29
Q

Vertical integration

A

It occurs when one firm joins with another firm at a different stage of the same production process

30
Q

Backwards vertical integration

A

When a firm joins with its suppliers

31
Q

Forward vertical integration

A

When a firm joins with its distributors

32
Q

Conglomerate integration

A

Occurs when one firm joins together with another firm in a different type of production process

33
Q

Economies of scale

A

Occurs when a business’s unit costs of production fall as its output rises and the business expands

34
Q

Diseconomies of scale

A

Occurs when the cost per unit increases as a business expands

35
Q

Organic growth

A

It is an expansion from within a business by expanding the number and/or range of products and/or locations

36
Q

Interest

A

Money paid by banks as a reward to attract people to save woth them

37
Q

Interest rates

A

Refer to the cost of borrowing money or the reward of saving money, expressed as a percentage

38
Q

Inflation

A

Refers to the rate at which prices are increasing. ( e.g. if inflation is 2% prices are generally growing by 2% that year

39
Q

Gross domestic product (GDP)

A

Measures all the income earned in a country’s economy in a year

Business Studies (4 decks)

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