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