Brainscape's Knowledge GenomeTM

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


See full index

Business > Unit 1 > Flashcards

Unit 1 Flashcards

0
Q

Define sole trader

A

A business that is run by a single individual

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

Define secondary industry

A

Manufacture, processing raw materials into finished good e.g. Builders, bakers, carpenters, chefs

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

Define partnership

A

Joint ownership of a business. The law says partnerships can have between 2 and 20 people

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

Define entrepreneur

A

Anyone who takes a risk and sets up their own business

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

Define consumer

A

Someone who uses that’s product

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

Define unlimited liability

A

You have no-one to help you get out of debt, solely your responsibility. If you go into debt they can take your personal possessions (by creditors)

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

Define wants

A

Things that are beyond our needs e.g. Phone, iPod, faster car

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

Define needs

A

Satisfy our basic requirements for living e.g. Food, water, warmth, security

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

Define primary industry

A

Extracting raw materials from the land or sea e.g. Fishermen, farmers, miners, forestry, oil rigs

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

Define customer

A

Someone who purchases the product

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

Define franchisor

A

The actual business, the business under control of the owner e.g. subway

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

Define tertiary industry

A

Selling finished goods to the customer e.g. Online shops (Amazon, eBay), supermarkets/shops

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

Define franchise

A

Where a business sells the rights to another business to use their name, products or process

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

Define franchisee

A

The people who ask the franchisor for the rights to use their name, products or process

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

Define niche products

A

Products for specific people/target audience

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

Define sleeping partner

A

Someone who doesn’t work for a business but gets some of the profits. Puts some money to start up in

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

Define affluent area

A

An area that is very rich

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

Define shareholder

A

Someone who ‘owns’ part of a business

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

Define stakeholder

A

Someone who is interested in/affected by a business

19
Q

Define aim

A

A goal to achieve at the end, a final long term goal

20
Q

Define objective

A

Individual stage/targets to achieve an aim

21
Q

Define mass products

A

Products for a wide target audience

22
Q

Define business plan

A

A written report showing what the business plans to do and what it needs to do in order to achieve its aims and objectives. It will include financial predictions for the company

23
Q

Define mission statement

A

Summary of aims/values of a business

24
Q

Advantages of setting up as a franchisee

A
  • easy to start up
  • help and training available from the franchisor
  • easier to obtain bank loans(less risk)
  • selling a product that is already established through an established company image
25
Q

Disadvantages of a franchisee

A
  • must pay a %of profits to franchisor

- no flexibility, must follow franchisor model

26
Q

Advantages to a franchisor of a franchisee

A
  • less organisation
  • keep control
  • regular royalty payments
27
Q

Benefits of setting up a franchisee compared to starting up as a sole trader

A
  • less risk, already established
  • easier to obtain a bank loan
  • people are already aware of your product so are more likely to trust the company
  • get help and training from the franchisor
28
Q

Disadvantages to a franchisor of a franchisee

A
  • could receive all profits if set up alone

- reputation reliant on others

29
Q

Benefits of setting up as a sole trader

A
  • receive all profits
  • you have complete control
  • you’re own boss
  • more rewarding
  • lower start up costs
  • keep business flexible
30
Q

Disadvantages of setting up as a sole trader

A
  • unlimited liability-could lose personal possessions
  • lots of work to deal with on your own, pressure and responsibility
  • reliant on one person
31
Q

Benefits of setting up as a partnerships

A
  • more ideas and skills
  • more support, less pressure and responsibility
  • bank is more likely to give you a loan
  • easier to set up
  • share debts
  • have someone else to rely on
  • less work
32
Q

Drawbacks of setting up as a partnership

A
  • still have unlimited liability
  • get less of the profit and is less rewarding
  • higher start up costs
  • not always an equal share, can cause arguments and disagreements
  • problems if partner leaves
  • All partners are responsible for debt
33
Q

What are the 10 part to a business plan?

A
  1. Mission/aims
  2. Objectives
  3. Market Environment
  4. Competition
  5. Product/service (idea)
  6. Marketing
  7. Distribution
  8. Funding
  9. Forecast
  10. Time
34
Q

What is meant by the term social enterprise?

A

A business that is set up for the benefit of society e.g. Charity

36
Q

What are the three pieces of documentation that must be completed before becoming a limited company?

A
  • memorandum of association (external) details of the company, it’s address, capital invested and activities involved
  • articles of association (internal) details of the voting rights of shareholder show profits are to be distributed duties of directors
  • certificate of incorporation, issued by companies house to say that a limited company had been formed
37
Q

Why might someone decide to start a business?

A
  • employment; will not be fired etc.
  • can earn more money
  • be your own boss
  • have more control; salary, workload
  • identified a gap in the market; meet demand
  • pursue you dreams
38
Q

(Characteristics of an entrepreneur)

A
  • innovative
  • forward thinking
  • business minded
  • determined/persevering
  • risk-taker/courageous
  • good leader
39
Q

What is the order of the chain of production order?

A

primary–>secondary–>tertiary

40
Q

List some factors of a business and their product for mass marketing.

A
  • standardized product
  • high competition
  • global business
  • economies of scale
  • generally lower prices
41
Q

List some aims for a business start up

A
  • gain loyal customers
  • raise awareness of the business
  • survive
  • break even then profit
42
Q

List some aims for a larger business

A
  • more employees
  • expand into other countries
  • increase profit
  • increase market share
43
Q

How can a business measure their success?

A
  • profit
  • sales figures
  • number of stores
  • number of loyal customers
  • meeting aims and objectives
  • market share
  • customer feedback
  • number of staff
44
Q

How does a business having lots of loyal customers show a business is successful?

A

Shows that customers are satisfied with the good/service that the business is supplying them

45
Q

How does a business having a high number of staff show a business is successful?

A

Shows that the business needs them, and that the business has a need for large quantities shows that they have a lot of jobs that need doing by these staff.

46
Q

How does a business meeting their aims and objectives show that a business is successful?

A

Means that they are working at the level set, and are where they want to be at certain points, and that they are doing well to meet them.

Business (13 decks)

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