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IGCSE Business ACG > Workbook 2 > Flashcards

Workbook 2 Flashcards

1
Q

Mission statement

A

A formal summary of the businesses aims and values

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2
Q

Stakeholder

A

Anyone inside or outside the company interested in the businesses activities

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3
Q

Shareholder

A

invests in a company in shares –> owns part of the business

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4
Q

What is an businesses objective?

A

The aim that a business works towards

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5
Q

Why does a business need to change its objectives over time?

A

1 - Owner wants to work towards a higher profit
2 - There is a larger market share
3 - They are facing a serious economic problem

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6
Q

Common objectives for a business

A
  • Profit
  • Survival
  • Growth
  • Increase market share
  • Quality Goods/Services
  • Service to community
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7
Q

Most important objective of a small business

A

Survival

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8
Q

Social enterprise company’s objectives

A

1 - Provide jobs and support
2 -To protect the environment
3 - To make profit to invest back into the enterprise

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9
Q

Social enterprise sector

A

They operate in the private sector

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10
Q

Stakeholders

The objectives of each one is just common sense!

A
  • Owners
  • Workers
  • Managers
  • Customers
  • Government
  • Community
  • Bank
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11
Q

Key objectives of a public sector

A

Financial - Meet profit targets for the government
Service - Quality goods/Services
Social - Create employment

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12
Q

Why is the public sector not expected to be profitable?

A

The government fund the businesses using taxes and they want the prices to be low

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13
Q

Multinational company

A

A company that manufactures goods in 2 or more countries

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14
Q

Host country

A

The country that a business manufactures in but head quarters isn’t based there

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15
Q

Home country

A

Head Quarters

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16
Q

Globilisation

A

Selling or producing products around the world

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17
Q

Fair Trade Agreement

A

When the primary sector workers get a fair price for their materials that they farmed

18
Q

Protectionism

A

Protecting a country by not allowing imports in or taxing imports

19
Q

Quota

A

A limit on the number of goods that are imported

20
Q

Tariff barrier

A

Taxing imports

21
Q

Non-Tariff barrier

A

Putting a physical limit on imports

22
Q

Exchange rates

A

The value of one currency in relation to another currency

23
Q

Currency APPRECIATION

A

Value of a currency goes up ^

24
Q

Currency DEPRECIATION

A

Value of currency goes down v

25
Q

Going multinational Advantages

A
  • Cheaper labour
  • Cheaper resources ( coke in India)
  • Avoid tariffs
  • Cheaper for customers
  • Expanding profit and production
  • Expand brand name
  • Better customer service
  • Spreading the risk
26
Q

Going multinational Disadvantages

A
  • Economic failure risk
  • Affects local competition
  • Unskilled employees (training cost)
  • Could be more powerful than the government
  • Often uses up all the resources in the area
27
Q

Open Questions

A

Do a good and bad argument

:) :(

28
Q

Inflation

A

The increase in the price of goods and services over time

29
Q

Unemployment

A

When people don’t have jobs

30
Q

Imports

A

To bring goods into the country

31
Q

Exports

A

To send products out of the country

32
Q

Interest rates

A

The percentage of money you get paid/charged over a year of saving/borrowing

33
Q

Disposable income

A

Money that you can use to buy little things

E.g Wine, shoes, take-away’s, personal items

34
Q

Direct tax

A

Tax that comes directly off your pay check to the government

35
Q

Indirect tax

A

The price added to goods and services GST that is paid to the government

36
Q

Trade barrier arguments For

A
  • Helps protect small businesses
  • They prevent ‘dumping’ (offloading goods to a country at a lower price)
  • Prevents overspecializing so certain skills are still used to make products/services (Plumbers, Welders, Cabinet makers)
37
Q

Trade barrier arguments Against

A
  • Restricts customer choice
  • Prevents business growth
  • Protects companies that have no competition and offer poor quality goods
  • Other countries will do the same so you can’t export
38
Q

Business cycle (graph)

A

USE COMMON SENSE!

39
Q

How are exchange rates determined?

A

Most currencies are allowed to float or vary on the foreign market according to the demand and supply of each currency

40
Q

Working out currencies

A

Use COMMON SENSE!

IGCSE Business ACG (5 decks)

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