Unit 1 - Business Activity and Influences on Business (What makes a business successful) Flashcards
1
Q
Measures of success
A
- Revenue
- Market share
- Customer satisfaction
- Profit
- Growth
- Owner/shareholder satisfaction
- Employee satisfaction
2
Q
Revenue
A
The amount of revenue a business gained by the business can be a measure of success.
3
Q
Market share
A
Maintaining or growing your market share could be used as a measure success.
4
Q
Customer satisfaction
A
Many businesses will monitor their ability to meet their customers needs and wants.
5
Q
Profit
A
Most private sector businesses aim to make a profit. Increase profit margin could be seen as the business being more successful.
6
Q
Growth
A
Many businesses aim to grow; therefore, the size of the business is important when measuring success.
7
Q
Reasons for failure
A
- Cashflow problems
- Lack of finance
- Not competitive
- Failure to adapt
8
Q
A
9
Q
Cashflow problems
A
Many businesses fail because they run out of cash.
