Understanding business Flashcards
what are the disadvantages of a partnership?
- The profit that is made is shared.
- Partners may not always agree.
- You have unlimited liability.
what are the economical factors?
- Exchange rates.
- Disposable income.
- Level of employment.
- Interest rates.
What are the social factors?
- More women in work.
- More people buying their own homes.
- People against animal testing on cosmetics.
- Increased car ownership.
What is limited liability?
- When the owners personal possessions are not at risk.
- They only lose what they put into the business (For example 50k).
Who are the external stakeholders?
- Local communities.
- Local governments.
- National government.
- Customers.
What is unlimited liability?
- The opposite of limited liability.
- The owners personal belongings can be taken off of them if they are unable to pay of debt.
What are the sectors of economy?
- Public.
- Private.
- Third.
What are the sectors of industry?
- Primary.
- secondary.
- Tertiary.
Who are the internal stakeholders?
- Owners.
- Employees.
- Shareholders.
Who owns, controls and finances the private sector?
- Owned by private individuals.
- Controlled by private individuals.
- Financed by retained profits.
What are the competition factors?
- Location.
- Growth/size.
- Price wars.
- Product/service being offered.
- Intimidation.
What are the consequences of poor customer service?
- Decrease in profits.
- Bad reputation.
- Loss of market share.
- Loss of competitive edge.
- Low staff morale.
What are the environmental factors?
- Storms.
- Recycling.
- Floods.
- Climate change.
- Pollution.
What are the political factors?
- Smoking ban in public places.
- Health and safety regulations.
- Increase in petrol prices.
- Taxes.
- Advertising and promotion of alcohol.
What is the aim of the private sector?
To make a profit.
What is the aim of the third sector?
To provide services to a worthy cause.
What are the disadvantages of being a sole trader?
- You have unlimited liability.
- You have to work long hours with little holidays.
- It can be difficult to finance.
What are the external factors?
- Political.
- Economical.
- Social.
- Technological.
- Environmental.
- Competition.
What are the benefits of good customer service?
- Customer loyalty.
- Improved reputation.
- Employee satisfaction.
What are the factors of production (CELL)
- Capital.
- Enterprise.
- Labour.
- Land.
Why do businesses exist?
- To provide goods and services.
- To provide employment.
- To provide choice.
- To innovate.
- To create competition.
- To develop infrastructure.
- To supply worthy causes.
- To increase and individuals wealth.
What are the business objectives?
- Survival.
- Profit.
- Provision of a service.
- Customer satisfaction.
- Enterprise.
- Social responsibility.
- Marketshare.
Why do businesses exist?
- To provide goods and services.
- to provide employment.
- to provide choice.
- to innovate.
- to create competition.
- to develop infrastructure.
- to supply worth causes.
- to increase an individual wealth.
What are the factors of production (cell)?
capital
enterprise
labour
land
