Unit 1 - A&B Flashcards
1
Q
What does ownership mean?
A
Who is in charge of a business and has control
2
Q
List 6 different business ownerships
A
- Sole trader
- partnership
- Plc
- Cooperative
- Government department
3
Q
What is a private business?
A
Owned by citizens and are liable for all aspects of the business and take my risks
4
Q
What does liability mean?
A
The amount of money a business is reliable for if it was to fail
5
Q
What is limited liability?
A
The amount is capped at how much money has been invested into the business
6
Q
What is unlimited liability?
A
Responsible for profits and losses, all savings and possessions are at risk
7
Q
What is a public business?
A
Belongs to the public sector, are owned by the government so they’re reliable for successes and failure
8
Q
What is a not-for-profit business
A
Don’t aim to make profit, often charitable organisations, want to make a difference, voluntary based work
9
Q
What is a business feature?
A
Characteristics or aspect specific to the business
10
Q
What is some purposes of a business?
A
- to supply products/services
- make a profit
- positive impact on local area
11
Q
What does sector mean and what are they?
A
Nature pf the business and the product or service they provide
- primary
- secondary
- tertiary
- quaternary
12
Q
What happens in the primary sector?
A
sourcing raw materials
13
Q
What happens in the secondary sector?
A
processing raw materials
14
Q
What happens in the tertiary sector?
A
pack products, stock them ready to be sold
15
Q
What happens in the quaternary sector?
A
selling the products
16
Q
Define scope
A
Range covered by business, who you can target and the area they are in
17
Q
3 scopes a business can have
A
- local
- national
- international
18
Q
What is a local scope?
A
owned locally and serves just the local area
19
Q
What is a national scope?
A
business operates nationally fairly frequently
20
Q
What is a international
A
takes place across national borders
21
Q
Describe business size
A
accurately quantity size of the business
22
Q
What are the 4 different business sizes?
A
micro, small, medium, large
23
Q
How many people ae in a micro business?
A
under 9
24
Q
How many people ae in a small business?
A
10-49
25
How many people ae in a medium business?
50-249
26
How many people ae in a large?
more than 250
27
What is success?
something good that happens to the business
28
Describe innovation
how a business is seen to be different or unique
29
Benefits to a business being innovative
- unique
-attract customers
- standing out
- reacting first
30
Drawbacks to a business being innovative
- might not be wanted
- idea could be copied
- costs and time
- relies on technology
31
What does inventor mean?
Someone who creates something that hasn't been done before
32
What does stakeholder mean?
Anyone who has interest or influence/impact on a business
33
List 8 stakeholders
- suppliers
- customers
- lenders
- competitors
- debtors
- creditors
-government
- local community
34
What does a customer expect as a stakeholder?
good products and customer service, choice, fair prices
35
What does internal stakeholder mean?
stakeholder inside the business
36
What does external stakeholder mean?
stakeholder outside the business
37
What does a manager expect as a stakeholder?
fair pay, control, job security
38
What does a supplier expect as a stakeholder?
reliable, regular orders
39
What does a employee expect as a stakeholder?
fair treatment/pay, job security
40
What does the government expect as a stakeholder?
follow guidelines, tax, oppearte ethically
41
What does the local community expect as a stakeholder?
respected, be involved, jobs provided, acting ethically/environmentally friendly
42
What does a pressure group expect as a stakeholder?
open to make changes, ethical, listened to
43
What does a competitor expect as a stakeholder?
operating equally/fairly, providing choice, following laws
44
What does a lender expect as a stakeholder?
repayment, interest, paying on time
45
What does a debtor expect as a stakeholder?
fair time to pay money back, contract, affordable interest
46
What does a creditor expect as a stakeholder?
paying on time, contract
47
How can stakeholders help a business?
-feedback on how to improve
- operating ethically
- regulate business
48
How can stakeholders hinder a business?
- negative media attention
- pressure group involvement
- slow decision making
- stakeholder conflict
49
What does communication mean?
How information is being delivered/passed on
50
9 types of communication
-face to face
- telephone
- fax
- videocall
- email
- presentation
- letter
- text
- reports
51
Why is effective communication important/needed?
reputation, less mistakes, customer loyalty, staff retention, respond quickly, team work
52
What does effective communication mean?
The message is given/received efficiently
53
What does ineffective communication mean?
The message is not give/received efficiently
54
Problems from ineffective communication
- bad productivity
- risk of failure
- slow decision making
55
Benefits of effective communication
- reliable
- positive reputation
- organised
- efficient
- profit
56
Advantage and disadvantage of face to face communication
+ clear, give feedback
- time consuming, message can be forgotten
57
Advantage and disadvantage of telephone communication
+ make/take calls anywhere
- might not answer, time difference
58
Advantage and disadvantage of written communication
+ less chance of forgetting
- illegible, lost, destroyed
59
Advantage and disadvantage of fax communication
+ saves time, automatic
- not everyone has a fax machine, have to pay
60
Advantage and disadvantage of videocall communication
+ remote working, can be in different locations
- connection, unreliable
61
Advantage and disadvantage of email communication
+ record of email, multiple people at once, attachments
- send to wrong person, internet access, not send
62
Advantage and disadvantage of letter communication
+ formal
- lost, cost, time, damaged, wrong place
63
Advantage and disadvantage of text communication
+easy, quick, can see if they've read it
- cost
64
Advantage and disadvantage of slide presentation communication
+share, print, easy
- time consuming , large file size, internet
65
Advantage and disadvantage of repots communication
+ easy to follow, summarise
- missed info, takes time to make
66
Define organisational structure
How a business is set up, roles/jobs staff have, how communication occurs, who has authority
67
List 4 organisational structures
- hierarchical
- flat
- matrix
- Holocratic
68
Examples of functional areas
- human resources
- sales
- research and development
- marketing
69
What does span of control mean?
How many staff a manager is responsible for
70
What is narrow span of control?
manager is responsible for less staff
71
What does wide span of control mean?
manager is responsible for more staff
72
What is a functional area?
A department of a business, what's happening and roles
73
Advantage and disadvantage of hierarchical structure
+ clear job roles, clear communication, narrow span of control
- slow decision making, slow messages
74
Advantage and disadvantage of flat structure
+ less layers, quicker communication, faster decision making
- wide span of control, high workload/stress
75
Advantage and disadvantage of matrix structure
+ encourage teamwork, shows links to other teams
- difficult to understand, no clear roles, relies on trust
76
Advantage and disadvantage of holoctratic structure
+ allows changes to be made, staff treated the same
- hard to understand control, doesn't show clear roles
77
Example businesses using a flat structure
- café
- charity shop
77
Example businesses using a hierarchical structure
- amazon
- schools
78
Example businesses using a matrix structure
- AstraZeneca
- Facebook
78
Example businesses using a holocratic structure
- small shops
- local supermarkets
79
What tasks does HR do?
Responsible for managing the people in organisation to include their welfare, job roles, progression opportunities
80
What tasks does R&D do?
Research and development of new products or concepts
81
What tasks does sales do?
Selling products or services
82
What tasks does marketing do?
Promoti4on of a business
83
What tasks does purchasing do?
Supplies products, stationery
84
What tasks does production and quality do?
Manufacturing, undertaking checks that products meet specification
85
What tasks does finance do?
Accounting, raising invoices, paying bills, wages
86
What tasks does customer service do?
Resolving customer queries and complaints, seeking feedback to improve products/services or develop ideas
87
What tasks does IT do?
Telecommunications and computer infrastructure such as website
88
What tasks does administration do?
Ongoing support for the business to function, such as dealing with correspondence, organising meetings and any travel
89
Define operations
How the business is ran
90
Benefits of how the business should be operated
ethical, environmentally friendly, efficient
91
Define business aim
Long term goal
92
define business objective
Short term goal that helps meet the aim
93
Examples of aims
- profit
- growth
- survival
- employee retention
- breakeven
94
Examples of objectives
- sell products
- good feedback
sell x amount of products
95
Define mission
A promise of commitment to the business cause
96
Define vision
The direction the business aims to travel in the future, short or long term
97
Define values
The philosophy and ethos of a business which underpin the vision
98
What aims would a public business have?
- value for money
- reduce costs
- improve quality
- improve times
- meet government standards/legislation
- help people
- be more efficient
99
What aims would a private business have?
- make profit
- profit maximisation
- breakeven
- survival
- growth
- market leadership
- motivate staff
100
What aims would a not-for-profit business have?
- retained profit
- increasing donations
- improve reputation
- positive media attention
- help others
- grow charity
- make a difference
101
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