1 1.1 Flashcards
(23 cards)
What are the fundamentals and principles of business?
The fundamentals and principles of business include the role, aims, and objectives of businesses in society.
What are common business models and organisational structures?
Common business models include sole traders, partnerships, public limited companies, and private limited companies.
What are the responsibilities of corporate governance within an organisation?
Corporate governance responsibilities include ensuring compliance, accountability, and ethical management.
What is the role of the government in controlling and directing the economy?
The government regulates economic activities, sets policies, and ensures market stability.
What are solutions-based approaches to decision-making in accounting?
Solutions-based approaches involve analyzing financial data to make informed decisions for business improvement.
What factors influence the quality and effectiveness of business decisions?
Factors include data accuracy, stakeholder input, market conditions, and resource availability.
What is the significance of accurate financial records for businesses?
Accurate financial records prevent legal issues, ensure stakeholder trust, and aid in performance measurement.
Fill in the blank: A _______ is a business owned and controlled by one person.
sole trader
What is a partnership?
A partnership is a business structure where two or more individuals share ownership and responsibilities.
What is limited liability in the context of partnerships?
Limited liability protects individual partners from being personally liable for the partnership’s debts.
What are the main types of limited companies?
Public limited companies and private limited companies.
True or False: Shareholders in a public limited company can vote at the Annual General Meeting.
True
What is the objective of a charity?
To create a surplus for helping others and supporting a good cause.
Who oversees the management of charity work?
A group of trustees.
Fill in the blank: Charities must produce annual accounts that are _______.
available to be viewed
What distinguishes private limited companies from public limited companies?
Private limited companies cannot trade shares on the stock exchange.
What happens when a partnership incurs debts beyond its assets?
Partners may face personal liability for the debts.
What is the role of stakeholders in a business?
Stakeholders have an interest in the business’s performance and can influence its operations.
What are some possible actions a business could take to improve its societal role?
Consider economic, social, and environmental factors.
What is the impact of inaccurate financial records?
Can lead to financial problems, legal issues, and stakeholder distrust.
What is a limited liability partnership?
A partnership structure that limits individual partners’ liabilities.
List the objectives of a business.
- Profit
- Growth
- Competitiveness
- Survival
- Market leader
Fill in the blank: Businesses provide goods and services for _______.
wants + needs at a good price
