Unit 2 Flashcards
Define a franchise
A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system
What is E-commerce
the act of buying or selling goods on an electronic system
What is out sourcing
When a business uses another business to produce for it
2 Ways a busniess can grow externally
A merger and a takeover
What is economies of scale
Cost of unit falls as its output rises, less money for more
What is a stake holder
someone who has a interest in the business
What is economic climate
it is the Gov influencing and controlling how the eco operates, aiming low inflation, high employment and inc production
What is globalisation
How a business or organisation delevops there international connections
Define legislation
used to control actions and prevent profit form being prioritised over the stakeholders
Define direct competition
Business that sells the same type of product or service
Define indirect competition
Business that do not sell the same type of product or service but are still in competition with each other.
Define M-commerce
Buying and selling of products through the use of a phone
What are some consumer rules
Must be as described
Must be at an appropriate quality
Must be of an appropriate safety
Personal data cannot be sold
Why might consumer law be good for a business
Increased confidence in business
Why might consumer law be bad for a business
Higher production cost (quality assurance)
