1 what is business

Question 1

business objectives

Answer 1

-profit
-growth
-survival
-cashflow
-social
-ethical

Question 2

missions vs objectives

Answer 2

mission: the overall purpose of the business
objectives: short terms specific goals

Question 3

social enterprise

Answer 3

a social enterprise is a proper business that makes its money in a socially responsible way

self-sustaining, do not rely on donations (not like charities)
make money by selling products and services to customers

Question 4

ordinary share capital

Answer 4

finance raised through selling shares to shareholders

Question 5

market capitalisation

Answer 5

the value of the business in the market

Question 6

dividends

Answer 6

reward from the business based on the percentage of shares one own

Question 7

external environments

Answer 7

-competition
-market condition
-income
-interest rate
-demographic factors
-environmental issues
-fair trade

Question 8

limited and unlimited liability

Answer 8

-sue and be sued
-assets attainment
-shareholders
-debt and risk

Question 9

ownerships

Answer 9

-private( sole traders, LTD, PLC)
-public ( gov, NHS)
-voluntary (non-profitable organisations, social enterprise)

Question 10

influences on changing business forms

Answer 10

-growth and retrechment
-change in objectives
-change in CEO

Question 11

influences on share price

Answer 11

the demand of that business

-reputation (news articles)
-business performance
-economic performance (overall market)

Question 12

reasons shareholder invest

Answer 12

-earn dividends
->potential of growth of the business
-support the aims and beliefs of business

Question 13

ethical, social and environmental objectives

Answer 13

ethical: be good
social: set up charities and support community
environment: (consider legality and ethics)

-> only if the business is profitable