unit 1

Question 1

what is a startup

Answer 1

a start up is a new business enterprise formed by one or more entrepreneurs.

Question 2

definition of a business

Answer 2

a business is an organisation that exists to provide goods an services on a commercial basis to customers

Question 3

profit

Answer 3

The difference between total sales and total costs

Question 4

revenue

Answer 4

The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.

Question 5

incorporated

Answer 5

legal difference between the business and the owners

owners have limited liability

Question 6

unincorporated

Answer 6

the business is the owner

owners have unlimited liability

Question 7

whats the transformation process

Answer 7

inputs->transformation process->outputs

Question 8

what a private limited company

Answer 8

A business that is owned by its shareholders, run by directors and where the liability of shareholders for the debts of the company is limited.

Question 9

whats a sole trader

Answer 9

A sole trader is a business that is owned and run by one person.

Question 10

whats a public limited company

Answer 10

a company that has offered shares of stock to the general public. The buyers of those shares have limited liability, meaning that they cannot be held responsible for any business losses in excess of the amount they paid for the shares.

Question 11

what does CELL stand for

Answer 11

capital
enterprise
land
labour

Question 12

whats a USP

Answer 12

unique selling point

Question 13

primary sectors

Answer 13

Any business that grows goods or extracts materials from the land (mining, farming, energy extraction)

Question 14

secondary sectors

Answer 14

take the raw materials from the primary sector and turn them into finished goods. (manufacturing, food processing, component assembly)

Question 15

tertiary sectors

Answer 15

providing services to consumers and businesses. (personal services, retailing, household franchise)

Question 16

quaternary sectors

Answer 16

providing information and ICT. (software development, financial services, data processing)

Question 17

what are SME’s

Answer 17

small, medium enterprises (under 250 employees)

Question 18

off-shore

Answer 18

taking advantage of lower land and labor costs.

Question 19

whats B2C

Answer 19

business to consumer

Question 20

B2B

Answer 20

business to business

Question 21

whats a mission

Answer 21

a qualitative statement of the businesses aims

Question 22

whats a aim

Answer 22

A long term plan from which business objectives are derived

Question 23

what are business objectives

Answer 23

the specific intended outcomes of business strategy

Question 24

4 functions of a business

Answer 24

finance, operations, marketing and human resources

Question 25

how can objectives be used

Answer 25

implement the mission provide a clear focus for decision making provide a target motivate employees provide a sense of unity

Question 26

market capitalisation

Answer 26

the value of a business

Question 27

what is a share

Answer 27

part ownership of a business

Question 28

whats dividends

Answer 28

a share of the profit split between the share holders

Question 29

equation of market capitalisation

Answer 29

share price X number of shares

Question 30

what is equity finance

Answer 30

finance from shares

Question 31

whats CESSPIT

Answer 31

cash flow ethical social survival profit increase turnover

Question 32

whats cash flow

Answer 32

the way that money moves in and out of a business and its bank accounts.

Question 33

what does ethical mean

Answer 33

is it morally right? eg children working in factories

Question 34

what does social mean

Answer 34

firms that aim to benefit groups within society (fair trade, not-for-profit organisation, social goals)

Question 35

whats CESSPIT used for

Answer 35

to help remember the goals for firms

Question 36

whats survival

Answer 36

having enough money to not have to shut down or brought out (60% of all companies shut down after 5 years)

Question 37

whats profit

Answer 37

the financial gain from an enterprise after all costs have been paid.

Question 38

whats increase turnover

Answer 38

also known as growth, growth may lead to increased profit and power its a choice not every company wants to grow as they want to retain control, it will depend on their objectives.

Question 39

what are SMART objectives

Answer 39

specific measurable achievable relevant time bound

Question 40

what does SMART help with

Answer 40

helps management set effective objectives

Question 41

specific meaning

Answer 41

the objective should state exactly what is to be achieved

Question 42

measurable meaning

Answer 42

an object should be capable of measurement - so that it is possible to determine whether (or how far) it has been achieved

Question 43

achievable meaning

Answer 43

the objective should be realistic given the circumstances in which it is set and the resources available to the business

Question 44

relevant meaning

Answer 44

objectives should be relevant to the people responsible for achieving them

Question 45

time bound meaning

Answer 45

objectives should be set with a time frame in mind. these deadlines also need to be realistic.

Question 46

what are bank overdrafts

Answer 46

an overdraft is really a loan facility, the bank lets the business 'owe it money' when the bank balance gores below zero, in return for changing a high rate interest

Question 47

benefits of retained profits

Answer 47

cheap (though not free) very flexible do not dilute the ownership of the company

Question 48

what factors can influence business objectives

Answer 48

age of business size and legal status ownership views of owners and managers market conditions legislation state of the economy competition risk and attitude to risk corporate culture political factors social attitudes

Question 49

what are strategic objections

Answer 49

focused on long term set by the board

Question 50

what are tactual objections set by the board involve higher risk

Answer 50

focused on short term set by line management relating low risk

Question 51

PESTLE meaning

Answer 51

political factors economic factors social factors technological factors environmental factors legal factors

Question 52

market conditions

Answer 52

features of a market such as: - sales growth - price levels - the number and strength go rivals

Question 53

demand

Answer 53

the amount of a particular good or service that consumers or organisations want and are able to afford to purchase.