Unit 1 Incorrect Questions Flashcards
Give 3 business objectives
Survival, cash flow, growth
Why do businesses set objectives
Motivational tool, aids in future decision making
Why a business has a mission statement
Established direction of the business, aligns owner and employees for same goal, informs public
Formula for ordinary share capital
Total value of shares when first issued X no. of shares
Formula for market capitalisation
no. shares X current share price
Why might a private limited company might change into a public limited company
Have higher equity, to increase exposure
2 factors that influence costs
Interest rates, legislation
Market conditions
Characteristics of a market a business operates in
Demographic factors
A study of the population
Types of strategic Differentiation
- USP
- Brand
- Quality
- Design
-Convenience - innovation
What markets does innovation work in
Dynamic market not static market
