Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

business > unit 1 - what is a business > Flashcards

unit 1 - what is a business Flashcards

1
Q

B2C

A

A business selling their goods and services directly to consumers (spotify)

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

B2B

A

A business selling their goods and services to other businesses (hootsuite)

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

Product

A

A general term for goods and services

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

Benefits to countries

A

Create employment, create income, create new products, enhance reputation

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

Primary Sector

A

Extract or grow raw materials (mining, fishing, oil extraction)

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

Secondary Sector

A

Manufacture goods using these raw materials (construction, supplying water, electricity and gas)

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

Tertiary Sector

A

Provide services (hotels, education, transport)

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

Mission Statement

A

Explains the organisations goals, why it exists and what it does/aims to do

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

Corporate Aims

A

Long-term goals of the entire business derived from the mission statement

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

Corporate Objectives

A

Specific tasks that will help accomplish corporate aims, medium to long-term, broken down into functional objectives

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

SMART Objectives

A

Specific, measurable, attainable, realistic, timely

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

Profit Maximisation

A

A business objective that requires a business to achieve the highest amount of profit for its shareholders or achieve a minimum amount of profit so they can focus on other objectives

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

Survival

A

A business objective which requires a business to continue trading despite challenges

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

Growth

A

A business objective that requires growth of stores, sales value, sales volume or product range

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

Cash Flow

A

A business objective aiming to be able to pay debts on time, also the movement of cash in and out of the business over a period of time

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

Social + Ethical + Environmental

A

A business objective that requires a business to focus on supporting society through initiatives (employment, fair trade, sustainability)

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

Diversification

A

A business objective where a business increases their range of products

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

Benefits Of Setting Objectives

A

Provide direction, support planning, co-ordinate resources, ensure employees are working to the same aim, motivation

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

Revenue

A

Income earned by a business from the sale of its products

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

Fixed Costs

A

Costs that do not vary as the business changes its output (rent, insurance, fixed salaries) they can change as the business grows

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

Costs

A

Expenses that the business pays

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

Variable Costs

A

Costs that change directly with output (wages for factory labour, raw materials, transport costs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Average Unit Costs

A

Gives the business an idea of what price they need to change, the selling price needs to be more than the average unit costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Interest

A

Extra amount you pay back when paying back a loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Output
Number of units produced
26
Inputs
Raw materials a business transforms in outputs
27
Private Sector Businesses
Run by individuals and companies for profit and not state-controlled
28
Unlimited Liability
Owners are personally responsible for debts, potentially risk personal assets
29
Limited Liability
Owners are only liable for debts up to their investment
30
Sole Traders
A single person who is the exclusive owner of a business
31
Advantages Of A Sole Trader
Easiest business to set up, gets to be their own boss, decides what to do with profit
32
Disadvantages Of A Sole Trader
Unlimited liability, hard to raise finance (viewed as riskier), all responsibility for decisions, harder to retain employees as they do not get share of profits
33
Partnership
Where two or more individuals share ownership, responsibility and profits
34
Advantages Of A Partnership
Easy to set up, more finance, shared responsibility, do not have to publish financial statements
35
Disadvantages Of A Partnership
Unlimited liability, profits must be shared, chance of disagreements
36
Company
A business organisation that has its own legal identity and limited liability
37
Incorporation
The process of establishing a business as a separate legal identity
38
Dividends
Part of a companys profits that are paid to shareholders in proportion to the number of shares they ow
39
Private Sector Businesses
Run by individuals and companies for profit and not state controlled
40
Private Limited Companies (Ltds)
Ownership of the business shares is restricted and all shareholders have to agree to sell shares
41
Advantages Of Ltds
Limited liability, owners can retain a lot of control, easier to get loan (viewed as less risky)
42
Disadvantages Of Ltds
Finance needed to incorporate a business, legally obliged to publish accounts
43
Public Limited Companies (Plcs)
Sell shares on stock exchange which anybody can purchase
44
Advantages Of Plcs
Raise money for investment, gain capital from bank (viewed less as a risk), limited liability
45
Disadvantages Of Plcs
Owners have little say over the business, anyone can take over the company, competitors can see how well the company is doing
46
Takeover
When one company acquires control of another by buying more than 50% of its shares
47
Privatisation
Process under which the state sells businesses that it has previously owned to private individuals
48
Public Sector Businesses
Organisations that are owned by the government or local government
49
Public Corporations
Enterprises owned by the state but offer products for sale to the public and private sector businesses, they can be managed by the central government (channel 4) or local governments (manchester airport)
50
Public Services
Includes organisations that provide a service to the whole nation (nhs)
51
Municipal Services
Services offered by local governments and councils (library, leisure centre)
52
Not-For-Profit
Reinvests any profit back into the organisation, the owners cannot keep the profit
53
Unincorporated Association
Owners have unlimited liability, no profit but are legally responsible for all the organisations debt (local sports clubs, volunteer organisations)
54
Social Enterprise
Make profit through selling products which is to be reinvested to support and benefit the community or society (the eden project, co-op group)
55
Charities
Can have tax relief and apply for grants but must follow rules and regulations for charitable status (oxfam, save the children)
56
Mutual Business
They are run for the benefit of the members who have a say in the management (co-operatives)
57
Franchising
Where business gives someone the right to sell its products and use its trademarks, the franchisee usually pays a percentage of the profits and an upfront free (kfc, krispy kreme)
58
Advantages Of Franchising
Expand without much investment, does not have to be concerned about risks with becoming a large corporation (less risk of diseconomies of scale), increases brand awareness
59
Disadvantages Of Franchising
Do not have complete control over franchisees, a single franchise can negatively affect the entire brand image
60
Ordinary Share Capital
Refers to the amount of finance raised through selling shares, usually a longer-term source
61
Market Capitalisation
A way of valuing a business
62
Shareholders
Individuals who hold shares in a business, the amount of shares they own dictates the power they have in decision making
63
Factors Influencing Shareholders
If they think share price will increase, receive an annual dividend, if they agree with the company aims
64
Factors Influencing The Value Of Shares
Business performance, economic environment, reputation
65
Significance Of Share Price
Decreasing price may have future investors worried about the business finance, rising share prices reflect that the company is doing well
66
Incorporated
The business is legally a separate entity from its owner/s
67
Unincorporated
Owner/s and business legally the same entity
68
External Environment
Economic factors, environmental and social factors, demographic factors, market factors
69
Market Conditions
Factors that can affect a market and how a business runs in it (competition, pricing, demand, supply, sales growth)
70
Environmental And Social Factors
Shapes how a business will act and how consumers perceive them (legislation, sustainability, legal wages, trends, diversity)
71
Economic Factors
Dictate business and consumer spending, impacts demand and performance (interest rates, changing income, recession, GDP)
72
Demographic Factors
Impacts the costs and demand of a business, relates to the population (ageing population, migration)
73
Fair Trade
A social movement that exists to promote improved trading terms and living conditions for producers of products in less-developed countries
74
Sustainable Production
When the supply of a product does not impose costs on future generations
75
Gross Domestic Product
measures the value of a countrys total output of goods and services over a period of time

business (4 decks)

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