Brainscape's Knowledge GenomeTM

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


See full index

Business AS Level > Unit 1: Business Forms > Flashcards

Unit 1: Business Forms Flashcards

1
Q

define the public sector

A

businesses that are owned and sometimes funded by the government

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

what three things make up the public sector

A

public corporations - enterprises - BBC

public services - offers a service to the nation - NHS

municipal services - basic services expected to be provided by a local council - local libraries

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

give an example of each of the three things that make up the public sector

public corporations -

public services -

municipal services -

A

public corporations - BBC

public services - NHS

municipal services - local libraries

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

define the private sector

A

businesses owned by individuals for a specific purpose

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

Give 3 examples of the private sector

A

Nike
Coca-Cola
Royal Mail

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

Give 3 examples of the public sector

A

Wheatley Park School
The BBC
The NHS

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

What is privatisation?

A

Privatisation is when the government sells businesses that they have owned and managed to private individuals and businesses

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

What are examples of privatisation?

A

Royal Mail
Railways
Utilities
Social Housing

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

Why would the government privatise?

A
  • Raises finance for them
  • Privately run businesses are considered more efficient
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the four ownership structures?

A

Sole trader
Partnership
Company
Not for profit

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

define sole trader

A

owned by one person - they can employ people to help

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

define partnership

A

owned by more than one person (usually 2-20) - a deed of partnership is needed

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

define company

A

owned by shareholders
has gone through the incorporation process
shares are sold

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

define not for profit organisations

A

has an objective other than for profit e.g British heart foundation

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

What is the incorporation process?

A

the process of establishing a business as a separate legal entity and limited liability
shares can now be sold

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

What are the 3 important documents needed in the incorporation process?

A

Memorandum of association
Articles of association
Registering with companies house

17
Q

what is limited liability

A

the business owners personal possessions and the business assets are separate.

if the business folds the owners personal possessions will not be used to pay off any debts

18
Q

what is unlimited liability

A

the businesses personal possessions and the business assets are one.

if the business folds, the owners personal possessions will be used to pay off debt

19
Q

what are 6 advantages of being a sole trader

A
  • own boss
  • can decide things quickly
  • easy to set up
  • keep all profit
  • make own decisions
  • finances are kept private
20
Q

what are 4 disadvantages of being a sole trader

A
  • unlimited liability
  • may lack finance
  • heavy workload
  • you may not have all the skills required
21
Q

what are 5 advantages of being a partnership

A
  • share the workload
  • more sources of finance
  • more skills to utilise
  • finances kept private
  • easy, and can be cheap, to set up
22
Q

what are 4 disadvantages of being a partnership

A
  • may disagree with partners
  • unlimited liability
  • liable for actions of all partners
  • need to share profits
23
Q

Unlimited liability is not ideal, how do we get rid of it?

A

become a company through the incorporation process which requires the three important documents:

  • Memorandum of association
  • Articles of association
  • Registering with companies house
24
Q

define shareholder

A

an investor and an owner

25
Q

define dividends

A

share of profit that is distributed to shareholders

26
Q

what are the two types of company? (define them)

A

Private limited company (Ltd): shares can only be sold to family and friends (people must be invited to buy shares)

Public limited company (PLC): Shares can be sold to the general public via the stock exchange

27
Q

List the positives (3) and negatives (2) of Ltds:

A

Positives:

  • can retain control of the company
  • can keep a larger share of profits
  • can make decisions in the company’s long-term interests

Negatives:

  • restricted on who they sell shares to
  • unlimited liability
28
Q

List the positives (4) and negatives (2) of Plcs:

A

Positives:

  • can gain access to large sums of capital
  • gain more publicity
  • can take over other companies more easily
  • unlimited liability

Negatives:

  • shares sold on the stock exchange
  • shares can be advertised in the media
29
Q

What is the purpose of not for profit organisations?

A

humanitarian causes
ethical pursuits
environmentalism
social justice
equality and equity

30
Q

equation for market capitalisation

A

market capitalisation = share price x number of shares

31
Q

define market capitalisation

A

The value of outstanding shares in a public limited company.

32
Q

why do people buy shares?

A
  • primarily financial reasons
  • investment
  • dividends from profits
  • have more of a say in what happens in that business
33
Q

what are the risks of buying shares?

A
  • external factors reducing share price
  • profits falling
  • less dividends
  • might not be able to sell shares for/ equal to what you paid
34
Q

what factors affect/influence share price?

A

Company’s performance
Economy
Competitors
Trends
Natural disasters

35
Q

what does rising shares mean for a business

A
  • Reflect well on management
  • Happier shareholders
  • Easier to raise capital
36
Q

what does falling shares mean for a business?

A
  • Reflects poor management
  • Difficult to raise capital
  • Vulnerable to takeover
37
Q

what are the four overarching areas to consider when determining the applicable ownership structure for a business?

A
  • The mission (mission statement)
  • The objectives
  • Decisions i.e speed and complexity
  • Performance i.e how it is measured and how do they compete

Business AS Level (5 decks)

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