Brainscape's Knowledge GenomeTM

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


See full index

BUSINESS STUDIES > Unit 1 > Flashcards

Unit 1 Flashcards

1
Q

what is the transformation process?

A

where inputs are processed within a business to add value and create outputs

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

why do businesses exist?

A

employ = tax = develop.
create wealth
enhance reputation
increase efficiency

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

what tax do employees pay?

A

income tax

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

define business

A

organisation that exists to provide goods or services to an individual on a commercial basis.

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

equation for added value (transformation process)

A

selling price - cost of bought materials = added value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what does primary business sector do?

A

extract raw materials

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

what does secondary business sector do?

A

manufacture / process raw materials = products

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

what does tertiary business sector do?

A

provide a service to community or business

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

what does quaternary business sector do?

A

provide information/knowledge or ict

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is a mission

A

the overall purpose of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is an objective?

A

a target to be achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what’s the acronym for setting objectives?

A

SMART

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what does SMART acronym stand for when setting objectives?

A

specific, measurable, achievable, relevant, time bound.

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

define aim

A

a long term plan that is used to make objectives

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

define corporate vision

A

what a business aspires to be

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

define mission statement

A

a qualitative statement of an organisations aims which describes the general purpose of business.

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

what is the benefits of having objectives?

A

provides focus and target, measures performance, motivate employees, reduce uncertainty, unity.

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

what is the difference between a corporate and functional objective?

A

corporate = whole business
functional= individual department so more detailed

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

factors that influence objectives

A
  • aims
  • risk
  • economy state
  • market conditions
  • legislation
  • competition
  • demand
  • social attitudes
  • ownership style
  • forecasting levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is the difference between a strategic and tactical objective?

A

TACTICAL = shorter time, lower risk, more achievable, require minimal investments

STRATEGIC = longer term, high risk, challenging, high investment required

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

what’s a tactical objective?

A

short term low risk and achievable target often needing low capital investment

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

what’s a strategic objective?

A

long time, high risk, challenging and needs high capital investments. set by the board.

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

revenue formula

A

selling price x total item sold

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

profit formula

A

total revenue - total costs

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

define variable costs

A

costs that change directly with output eg materials

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

total cost formula

A

variable + fixed costs

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

importance of profit

A

-allowing to reinvest
-owners happy
-dividends
-exterior finance access
-pay taxes

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

what is an incorporated business?

A

the business is registered with the companies house so has certificate of incorporation and has limited liability

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

advantages of being a sole trader

A

owning all of the profits, low admin, easy to set up

30
Q

disadvantages of being a sole trader

A

liability debt, raise own finances.

31
Q

define company

A

legal entity where the owners of it are shareholders

32
Q

what is a limited company aka incorporated?

A

registered with companies house = limited liability

33
Q

what’s the difference between a private and public limited company?

A

private = shares sold privately and share prices determined internally.
public = no control over share price & sold on stock exchange.

34
Q

what is a mutual (business forms)?

A

where the organisation is run for interest of future and current members
profits all reinvested

35
Q

what’s a social enterprise/ not for profit organisation?

A

when its run for social benefit, instead of interest of gaining ownership profits

36
Q

advantages running a social enterprise

A

tax reductions, benefits communities, employment for locals

37
Q

disadvantages of running a social enterprise

A

the regulations are strict, profits must be given to charity but also employees

38
Q

define a share

A

equity in a company meaning they are entitled to dividends

39
Q

what are the two methods of a shareholder getting return on investment?

A

dividends, capital gain/growth

40
Q

what is capital gain/growth?

A

increase of share value when bought vs sold.

41
Q

dividend yield formula

A

div per share/ share price X100

42
Q

What happens to share price if share > supply?

A

increases share price

43
Q

What happens to share price if share < supply?

A

decreases share price

44
Q

what is market capitalisation?

A

total market value of share capital ( if you were to sell)

45
Q

what is dividend yield?

A

% reward for investing

46
Q

Market capitalisation formula

A

share price x no. shares

47
Q

How does the fluctuating share price affect a business?

A
  • displays managers performance
  • changes public perception
  • affects ability to raise finance
48
Q

Internal influences on plc share price

A
  • management changes
  • amount of shareholders
  • change of advertising
  • expansion or rationalisation
  • product releases
49
Q

External influences on plc share price

A
  • interest rates
  • demand
  • competition
  • media
  • market share
50
Q

what are the two types of issuing shares?

A

Flotation and Rights issue

51
Q

what’s an IPO

A

an initial public offering
( LTD TO PLC = issuing for first Time)

52
Q

what is flotation aka IPO?

A

going public, stock exchange for first time = ltd to plc for first time. shareholders in ltd can see value of their share for first time.

53
Q

benefits of having selling shares

A

finance source, no debt instead of from loans.

54
Q

drawbacks of selling shares

A
  • costly ( give profits by dividends)
  • lose control
  • high admin
  • cost of capital gain often more in long term than a loan
55
Q

what’s a private sector business?

A

not ran by the government

56
Q

what’s a public sector business?

A

owned by government

57
Q

acronym for the external environment

A

PESTLE

58
Q

What does PESTLE stand for?

A

Political, economic, social, technological, legal, environmental

59
Q

What political factors may affect a business?

A

conflict,laws, taxes, trading limitations

60
Q

What economic factors may affect a business?

A

GDP, exchange rates, interest rates, consumer incomes

61
Q

What social factors may affect a business?

A

demographic changes, trends, competition, lifestyle

62
Q

What technological factors may affect a business?

A

production process, innovation of tech, mobile, online presence, social media

63
Q

What environmental factors may affect a business?🌳

A

pollution, carbon cycle, sustainability, waste disposal, recycling, materials used

64
Q

What legal factors may affect a business?

A

employment laws, minimum wages, health and safety regulations, pollution regulations

65
Q

what is an inferior good?

A

demand falling when customer incomes change

66
Q

define interest rate

A

cost of borrowing money and the return for lending

67
Q

define demand

A

amount of good/service that a customer or organisation want and can afford.

68
Q

define market conditions

A

features of a market eg sales growth or market share.

69
Q

what is disposable income?

A

money a person has after tax

70
Q

Advantages to a business of being environmentally good

A

good reputation, improves brand image, better share prices, attractive to investors ( eg. venture cap: Deborah meaden wont invest if not).

71
Q

Drawbacks to a business of being environmentally good

A

increased costs, must be monitored heavily, shareholders less dividends if less profits, inventory may not be used as efficiently, against objectives

BUSINESS STUDIES (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions