Brainscape's Knowledge GenomeTM

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


See full index

Business GCSE Edexcel > Unit 1 > Flashcards

Unit 1 Flashcards

You may prefer our related Brainscape-certified flashcards:
GCSE Geography - AQA flashcards GCSE Religious Studies - Edexcel Route B flashcards GCSE Religious Studies - Eduqas Route A flashcards GCSE Religious Studies - Edexcel Route A flashcards GCSE Religious Studies - Eduqas Route B flashcards
1
Q

A business

A

Any organisation that sells goods or provides services

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

Goods

A

A physical product

Eg. A car

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

Service

A

Non-physical items

Eg. A haircut

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

Small business

A
  • has less than 50 staff
  • solo ownership
  • usually operate in one area
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Reasons to start a business

A
  • Money
  • independence (flexible hours)
  • doing something they enjoy
  • gaps in the market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Entrepreneur

A

Someone who sets up a business

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

Risk

A

The chance of a loss or damage/ the probability of something going wrong

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

Calculated risk

A

A risk which has been given consideration

Costs and potential benefits have been weighed up and compared to the probability of failure

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

Examples of risk

A
  • going bankrupt
  • no sales
  • lack of security
  • poor execution
  • aggressive response from competitors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Examples of reward

A
  • earning money
  • building something
  • seeing hard work go somewhere
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Adding value

A

Adding value to each part of the production

Eg. Growing trees 
               |
         Cut trees 
               |
      Season timber 
               | 
   Construct furniture 
               |
      End product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Examples of adding value

A
  • branding
  • quality
  • USP
  • Speed
  • convenience
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Wants

A

A want is something you would like but can live without

Eg. A car

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

Needs

A

A need is something you rely on to live and is a necessity

Eg. Food

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

Internal finance

A

Money earned within the business

Eg. Profit

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

External finance

A

Money obtained outside the business

Eg. Loans

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

Short term finance

A

Sources of money which can be paid back quickly

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

Long term finance

A

Sources of money which are paid back over a period of time (over a year)

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

Trade credit

A

When a supplier allows you to pay later for goods or services

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

Overdraft

A

An overdraft is when you can withdraw more money than you have

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

Break even

A

Break even is the point at which the total revenue of a business equals the total costs

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

Cash inflow

A

Money coming into the business

Eg. Sales

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

Cash outflow

A

Money coming out of the business

Eg. Rent

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

Primary research

A

Research a business does themselves

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

Market research

A

The process of gathering information about the market and customers needs and wants in order to inform the business’s decisions

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

Margin of safety

A

How many sales made after the break even point has been reached

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

Advantages and disadvantages of personal savings

A

+security
+quick
+no interest
-limited amount

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

Advantages and disadvantages of crowdfunding

A

+quick
+alternative to a loan
-lots of work
-if target isn’t reached money has to be given back

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Advantages and disadvantages of long term loans

A

+quick
+fixed interest rate
-high interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Advantages and disadvantages of venture capital

A

+skills from investors
+money
-lose a percentage of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Advantages and disadvantages of share capital

A

+raise large amounts of money

-may be tension between shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Advantages and disadvantages of retained profit

A

+it’s your money
+no interest
-no guarantee the business will make profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Advantages and disadvantages of questionnaires

A 
Primary research
\+up to date data
\+easy to analyse
\+cheap online
-people may find it a nuisance 
-online may not be honest
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Advantages and disadvantages of focus groups

A 
Primary research 
\+up to date
\+in depth response 
-time consuming 
-costly
35
Q

Advantages and disadvantages of interviews

A 
Primary research 
\+detailed response
\+cheap over the phone 
-expensive in person 
-time consuming
36
Q

Advantages and disadvantages of observations

A 
Primary research 
\+in depth 
\+up to date 
-expensive
-may give misleading responses 
-time consuming
37
Q

Secondary research

A

Research published by people or organisations that are not related to the business specifically

38
Q

Advantages of secondary research

A
  • quick
  • gathered on a larger scale
  • may be cheap or free to access
39
Q

Disadvantages of secondary research

A
  • biased
  • not specific to the business
  • may be costly
  • may be outdated
40
Q

Market segmentation

A

Grouping the market into categories to know who you’re selling to and how to advertise to them
Eg.age

41
Q

Pros and cons of market maps

A

+straight forward
+clear to see gaps in the market
-they’re subjected (based of opinions)
-doesn’t tell the full story

42
Q

Qualitative data

(pros+cons)

A

Usually opinions
+detailed descriptions
-costly
-time consuming

43
Q

Quantitive data

Pros+cons

A 
Usually numbers and statistics 
\+quick to understand 
\+easy to analyse 
-not much detail 
-lacks opinions
44
Q

Equation for total revenue

A

Price x quantity = total revenue

45
Q

Revenue

A

How much the business earns

46
Q

Fixed costs

A

Costs which do not vary with output

Eg. Rent

47
Q

Variable costs

A

Costs which change directly with the output

Eg. Packaging

48
Q

Limited liability

A

The businesses finances are separate from the owners meaning if the business goes into debt the owner won’t lose personal assets

49
Q

Un-limited liability

A

The owner has full responsibility for the businesses finances so if the businesses goes into debt the owner may have to sell personal assets

50
Q

Sole trader

A

One person running a business themselves

51
Q

Advantages and disadvantages of a sole trader

A 
\+cheap
\+simple 
\+don’t need to publish accounts 
-un-limited liability
-fewer sources of income (eg.shares)
52
Q

Partnership

A

Several people running the business

53
Q

Advantages and disadvantages of a partnership

A 
\+wider expertise
\+share risk
\+easier to grow business finance 
-share profit
-potential arguments 
-decisions affect everyone
54
Q

Private limited company

A

The shareholders (owners) have a separate legal identity to the company

55
Q

Advantages and disadvantages of a private limited company

A 
\+limited liability
\+additional sources of finance 
\+control who shareholders are
\+selling shares 
-no access to stock exchange 
-legal requirement to publish financial accounts
56
Q

Franchise

A

When a business gives another business permission to trade using its name and products in return for fees and shares of its profits

57
Q

Advantages of a franchise

A 
\+branding 
\+lower risk
\+training 
\+skills
\+advertising already done
58
Q

disadvantages of a franchise

A
  • limited growth
  • lack of freedom
  • brand reputation can be damaged by other franchises
59
Q

Location

A

Where the business decides to operate

60
Q

Things a business must consider when choosing location

A
  • competitors
  • cost of rent
  • traffic
  • distance from suppliers
61
Q

E-commerce

A

Selling and buying online

62
Q

M-commerce

A

Using mobile technologies (apps) to carry out business transactions

63
Q

Business multichannel

A

Operating in a physical location and an e-commerce site

64
Q

Business plan

A

Written document that describes things such as objectives, strategy, market, financial forecast etc

65
Q

What’s included in a business plan?

A
  • aims
  • people (skills, employees)
  • products/services
  • the market
  • competition
  • marketing
  • finance
  • operations
66
Q

Stakeholder

A

Someone with an interest for the business

Eg. Customers,government etc

67
Q

Legislation

A

Rules/law of the country that customers and businesses must follow

68
Q

Trades description act

A

Prevents manufacturers misleading consumers as to what they’re spending money on

69
Q

Sales of goods act

A

The goods should match any sample you were shown and should be the right quality for the price

70
Q

Consumer rights act

A

What should happen if goods are faulty and unfair contracts, consumer had rights (receipts)

71
Q

What happens when interest rates are high?

A
  • consumers spend less as they have less money

* may lead to fall in demand for businesses

72
Q

What happens when interest rates are low?

A
  • people get more loans
  • people have more disposable income
  • higher demand for businesses
73
Q

Inflation

A

The increase of the prices overtime

This means everyday items increase in price (usually 2% a year)

74
Q

Exchange rate

A

The price of one currency in terms of another

Eg. £1 = $1.50

75
Q

Appreciation

A

An increase in the value of a currency

76
Q

Depreciation

A

A decrease in the value of a currency

77
Q

What does SPICED stand for?

A 
Strong
Pound
Imports 
Cheap
Exports 
Dear (expensive)
78
Q

Tax

A

Taxation is the process of imposing charges on a business and individuals by the government

79
Q

Types of taxes

A
  • VAT (value added tax)
  • income tax
  • corporation tax
80
Q

How to answer 3 mark questions?

A

1x BLT

81
Q

How to answer 6 mark questions?

A

2x BLT

+context

82
Q

How to answer 9 mark questions?

A

Pro
Con
Conclusion:
AJIM

83
Q

How to answer 12 mark questions?

A

Agree
Disagree Or 2 separate points
Conclusion- AJIM

84
Q

What does AJIM stand for?

A

Answer
Justify
It depends on
Most important

Business GCSE Edexcel (2 decks)

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