Understanding buissness Flashcards
What are the factors of production
Land labour capital and enterprise
What are the sectors of industry
Primary secondary tertiary
Describe the factors if production
Land-natural resources that the buisness uses e.g plot of land ,coal,forests
Labour- the workforce of the buisness e.g joiners ,shop assistants,teachers
Capital- the tools machinery and equipment that a buisness owns e.g tractors ,factories,lorries
Enterprise- the buisness ideas that the owners or enterpenures have about how to use land labour or enterprise to make a profit
Describe the sectors of industry
Primary- the sectors involved in extracting raw materials from the land sea or air
Secoundry- this is the sector tqht uses the raw materials from the primary sector to manufacturerproducts or parts of other products.
Tertiary- this is the sector involved in providing services e.g hairdressers taxis
What are the sectors of economy
Private, public, third
Describe the sectors of economy
Private- this sector of the economy are owned and controlled by private individuals.thease people have invested their time money and idears into the buisness and want to make a profit.e.g Greg’s,nike
Public- this sector of the economy are owned and controlled by the government. They provide services to people because they need them and arnt given out based on ability to pay
E.g education and health services
Third- this sector of the economy are not run to make a profit for the owners and are not owned by the government. They need to make a profit to survive but their main aim is to raise awareness to their cause. E.g charities social enterprises
What’s an advantage and disadvantage of a sole trader ( 4)
An advantage of is sole trader isThe owner makes all the decisions and
Owner gets to keep all the profits
A dissagevantage if a sole trader is that finance can be difficult to raise as banks may not be as keen to lend to a small buisness and that they will have long working hours few holidays and all the responsibilities fall on them.
What’s advantages and disadvantages of a partnership(4)
An advantage is tagt the workload can be shared and that partners can specialise in their own area if expertise
A disadvantage of a partnership is that profits are shared and partners may disagree on how to run the buisness
What the advantageand disadvantages of a private limited company(4)
An advantage of a private limited company is yhat more finance can be raised from lenders and shareholders and that there is limited liability .
A disadvantage of a private limited company is that profits are shared amongst more people
And taht shars can’t be sold to the general public.
What is the ownership if a sole trader
A sole trader is owned and run by one person
What I the ownership of a partership
A partnership is owned and controlled by 2 to 20 people
What is the owntership of a private limited company
Is run by a board of directors and owned by shareholders
What is the ownership of a local government organisations
They are run and owned by the goverment
What is the ownership of a social enterprise
Thease are run by groups such as youth and sport clubs and are run by their members who have been elected on to the comitee
What is the ownership of a charity
A board of trustees control how they are run and most the people who work for them are volenteers
What quality’s and skills does an entrepreneur need
Being a risk taker - willing to risk personal funds to start and keep teh buisness going
Being determined- never giving up Being willing to see things throught
Being creative- to come up with the idears for buisness
Being a hard worker- to work for long hours to get the buisness started and keep it going
What are 3 aims and objectives of a private sector
To break even and cover your costs
To maximise profits
To give excellent customer service
What are 3 aims and objectives of a public sector organisation
To provide a quality service to the public
To stay within budget
To serve the public interest
What are 3 aims and objectives of a third sector organisation
To use profits to help a social or environmental cause
To raise awareness to their cause
To recruit more volunteers
What is a stakeholder
A person or a group of people who have an interest in a buidnesd or organisation and in the way of which it is managed
Interests of stakeholders in a buisness(4)
Employee- good salary
Customer- best quality products at yhe lowest possible price
Local community- companies provides jobs for an area
Suppilers- want the buisness to successful to ensure repeat customer
What influences do stakeholders have kn a buisness(4)
Employees can change the standard of their work
Customers can choose weather or not to buy goods or services
Local community
Petition against the company
Suppliers can change their prices
What is the impact of employeed in an organisation
If quality is poor customers will go elsewhere which will effect sales
What is the impact of banks in an organisation
If a buisness does not get the loan they require yhey might nkt be able yo expand with could lead to sales not being as high as hoped
