Brainscape's Knowledge GenomeTM

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


See full index

Business > Unit 1 - Understanding Business > Flashcards

Unit 1 - Understanding Business Flashcards

1
Q

What is a need?

A

A need is something that is essential for survival

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

What is a want?

A

A want is a luxury item that makes life more enjoyable

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

What is a good?

A

Goods are items that we can see and touch

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

What are types of goods?

A

Non durable goods - food
Durable goods - cars
Consumer goods - magazines
Capital goods - robot used to make car

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

What is a service?

A

Services are types of products that you can’t hold or touch e.g. public transport, hair cut, visit to the cinema

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

What are the four factors of production?

A

Land - natural resources of earth
Labour - human effort and skills needed to produce the product/service
Capital - the money needed to start up and run a business
Enterprise - the person who comes up with the idea and makes it happen

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

What are the sectors of industry?

A

Primary - extraction of raw materials
Secondary - the making of goods
Tertiary- services

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

What is customer service?

A

•Meeting customers needs and wants
•Being polite, honest and helpful
•After sales service, customers care line and product demonstrations

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

What are benefits of customer service?

A

•Customer loyalty - they are more likely to return
•Improved reputation- recommend the company to family and friends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the consequences of poor customer service?

A

•Decrease in profits
•Bad reputation
•Loss of market share
• Loss of competitiveness edge
•Low staff morale

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

How do you measure customer satisfaction?

A

•Ask customers opinions/interview customers
•Post a survey/questionnaire
•Set up a focus group
•Feedback form

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

How do you maximise customer satisfaction?

A

•Market research
•Staff training
•After sales service
•Customer complaints
•Quality products

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

What is an entrepreneur?

A

An entrepreneur is a person who develops starts and runs their own business

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

What skills do entrepreneurs need to have?

A

•Determination/leadership
•Communication skills
•Finance skills
•Organisation skills
•Decision making

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

What is a private sector business?

A

The private sector benefits private individuals (shareholders)

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

What are the private sector businesses aims?

A

•To make a profit
•To provide goods/services
•To grow
•Keep customers happy
•To survive agains competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a sole trader?

A

A one owner business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a partnership?

A

Is owned and controlled by 2-20 people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are advantages and disadvantages of a sole trader?

A

Advantage - the owner keeps all profits
Disadvantage - long hours and many skills required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are advantages and disadvantages of a partnership?

A

Advantage - work can be shared, partners can specialise in certain areas of the business, easy to take time off
Disadvantage - unlimited liability, may have arguments and disagreements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is unlimited liability and limited liability?

A

Unlimited liability - being personally liable for all of your debts
Limited liability - you only lose what you have invested into the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a private limited company?

A

The ownership of a limited company is decided up into equal parts called shares. Whoever owns one or more of these is called a shareholder. A limited company is private when its shares are not abating the public by being bought and sold on the stock exchange.

23
Q

What are advantages and disadvantages of a private limited company?

A

Advantage - able to raise money by borrowing and through the shares issue of ordinary shares, limited liability
Disadvantages - must be registered with the register of companies, legal set up costs are expensive

24
Q

What is the public sector?

A

Benefits the public (all of us) and not private individuals

25
Q

What are the aims of the public sector?

A

-Provide essential services such as schools or hospitals
-Treat everyone equally
-Cover costs by sticking to a budget

26
Q

Name examples of the public sector

A

Police, fire service, NHS, councils

27
Q

What are the third sectors aims?

A

To raise awareness of an issue, be socially responsible and to provide support for those in need

28
Q

What are the two main groups of the third sector?

A

Non profit organisations and Social enterprises

29
Q

What is a non profit organisation?

A

Charities supporting specific causes

30
Q

What is a social enterprise?

A

A business that trade to improve communities, peoples lives or the environment.
They don’t exist to make a profit

31
Q

What is the purpose of a business plan?

A

-To present the objectives of the business
-To reduce the risk of the business failing
-To present to the bank when applying for a loan

32
Q

What is the content of a business plan?

A

-General details (name, location)
-Human resources (staff, wage)
-Product/Service (production levels, whats bring sold)
-Market (target market, research)
-Assets (costs, premises, equipment and machinery required)
-Cash flow (source of finance and expected use, forecast of sales, costs and profits)
-Equality (money invested by owner)

33
Q

What is a stakeholder?

A

Is a person, group or organisation that has an interest in how an organisation is run

34
Q

What are customers influence and interest in a business?

A

Interest - Want good service, good choice, quality, value for money

Influence - Can decide to go back or not, reviews

35
Q

What are suppliers influence and interest in a business?

A

Interest - Want to be paid on time

Influence - Can decide to supply or not

36
Q

What are staffs influence and interest in a business?

A

Interest - Want good pay and working conditions

Influence - Can decide to work hard or go on strike

37
Q

What are banks influence and interest in a business?

A

Interest - Want their loan paid back at agreed interest rate

Influence - Can increase or decrease interest rates, loan again or not

38
Q

What are managers influence and interest in a business?

A

Interest - Want status/power, bonus for meeting targets

Influence - Make decisions, hire staff, make policies

39
Q

What are the local communities influence and interest in a business?

A

Interest - Want the business to be a good neighbour (no inconvenience)

Influence - Can support growth plans or not, complain

40
Q

What are pressure groups influence and interest in a business?

A

Interest - Want business to maintain ethical/environment stance

Influence - Can endorse or not, protest or go to media

41
Q

What are the governments influence and interest in a business?

A

Interest - Want business to provide jobs, pay corporation tax

Influence - Can introduce new laws that affect business operation, raise/lower taxes

42
Q

What is an external factor?

A

Things that a business cannot directly control, these factors can negatively affect the performance and success of a business so they must react and change to the effects of these factors.

43
Q

What are the 6 main external factors?

A

-Political (laws,taxes)
-Economic (value of money)
-Social (changes in society)
-Technology (keep up with IT)
-Environmental (weather)
-Competitive (more than one business)

44
Q

What are political external factors?

A

-Governments can raise and lower taxes
-Laws can be introduced that restrict the sale of certain products
-National minimum wage increases each year

45
Q

What are economic external factors?

A

-Interest rates
-Inflation (cost of living)
-Rate of unemployment

46
Q

What are social external factors?

A

-Lifestyles changing, healthy living and consumer information
-Population is ageing, birthrate falling
-Tastes and trends changing constantly

47
Q

What are technology external factors?

A

-More films are online
-Automation is reducing the number of staff required for repetitive jobs

48
Q

What are environmental external factors?

A

-Physical credentials - Weather and climate change

-Green credentials - Demand for environmentally friendly products

49
Q

What are competitive external factors?

A

-Imitators copy well known products
-Price wars cause rival businesses to lower prices
-Product differentiation required to make businesses stand out

50
Q

What are the 3 main internal factors?

A

Human resources, finance and technology

51
Q

What is an internal factor?

A

Things that a business can directly control

52
Q

What are human resources internal factors?

A

-Manages can influence a business with decision making, hiring an firing of employees
-Employees can influence a business with productivity and absenteeism

53
Q

What are finance internal factors?

A

-Developing new products
-Advertising campaign for a product
-Need adequate funds in place in order for a business to survive and grow

54
Q

What are technology internal factors?

A

Businesses rely on specialist software, access and control of social media, apps for selling online and machines for producing products.

Business (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions