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Business > Business In The Real World > Flashcards

Business In The Real World Flashcards

1
Q

What is a business ?

A

A business is an orginisation designed to supply a product which is capable of satisfying a customers need

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2
Q

What is a service ?

A

A service is an act that a business person carries out for you in exchange for money. A service can’t be touched it is intangiable
E.g. cleaning, gardening, taxis etc

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3
Q

What is land in the 4 factors of production ?

A

Land is somewhere to produce the goods
E.g. a farm

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4
Q

What is labour in the 4 factors of production ?

A

Labour - people to work in the business
E.g. farm workers

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5
Q

What is capital in the 4 factors of production ?

A

Capital - money to get the business started

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6
Q

What is enterprise in the 4 factors of production ?

A

Enterprise is the drive or motivation from the owners to start a business

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7
Q

What is the primary sector ?

A

The primary sector extracts raw materials from the planet

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8
Q

What is the secondary sector ?

A

In the secondary sector goods are manufactured from raw materials into finished goods

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9
Q

What is the tertiary sector ?

A

The tertiary sector is the support service for the business
E.g. shops, banks, insurance etc

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10
Q

What is a product ?

A

A product is anything capable of satsfying customer needs it is tangiable and can be touched

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11
Q

What is a sole trader

A

A sole trader is someone who owns their entire business so it’s only ran by them

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12
Q

What is a partnerhip

A

A partnership is the relationship between two or more people to do trade or business

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13
Q

What ia aPLC (public limited company)

A

A PLC is a business that is leagally allowed to sell its shares to the public

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14
Q

What is a LTD (private limited comapany)

A

A LTD is a business means the companys owners are not personally responsiable for the debts of the business

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15
Q

What is unlimited liability

A

When the business owner or owners are personally responsible for all the debt of the business, no matter what the value

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16
Q

Stock market

A

A centralised market where business shares are traded

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17
Q

Shares

A

A percentage or portion of a company

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18
Q

Share holders

A

A part of a private or public limited company

19
Q

Share capital

A

The money raised when a business becomes a public limited company by offering shares in the business in return for capital

20
Q

Profits

A

The amount of money made after all costs are deducted

21
Q

Limited liability

A

When the business owner or owners are only responsible for business debts up to the value of their financial investment in the business

22
Q

Income tax

A

Tax that someone pays based on their personal income

23
Q

Hostile takeover

A

A takeover of one company (called the ‘target company’) by another (called the ‘acquirer’) that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved

24
Q

Grant

A

A grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back

25
Q

Economies of scale

A

Where the average costs (of production, distribution and sales) fall as the business increases the amount of product that it produces, distributes and sells

26
Q

Dividends

A

A sum of money paid regularly by a company to its shareholders out of its profits

27
Q

Deed of partnership

A

A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners

28
Q

Companies house

A

Any limited company or partnership business has to register with Companies House. These records are public and there is usually a fee to register

29
Q

Advanteges of sole trading

A
  1. Its quick and easy to set up
  2. Be your own boss make your decisions
  3. You claim all the profit
  4. Low set up cost
30
Q

Disadvantege of sole trading

A

it has the risk of unlimited liability.
it can involve long work hours and stressful conditions.
there is a high level of responsibility for the owner.
often the owner performs many different roles in the business.

31
Q

Business survival

A

is a very common objective for a small business. Business survival refers to keeping the business operating for a certain amount of time. Most businesses initially aim to survive their first year

32
Q

Profit maximisation

A

will become the aim of a business once it has reached its break-even point

33
Q

Growth

A

can refer to increasing the number of employees, the number of products sold, or income from sales. Firms may aim to grow domestically (in the same country) or internationally (in other countries)

34
Q

Market share

A

refers to the percentage of the market that a business occupies. The market is the industry that a business operates in, for example the fast food industry

35
Q

Value of shares

A

is an important aim for a limited company. By increasing the value of the shares, they will keep their shareholders happy

36
Q

Customer satisfaction

A

measures how happy a customer is with the products or services provided by the firm. This is a key objective for firms in a competitive market

37
Q

Social and ethical objectives

A

are linked to doing things in an ethical or environmentally friendly manner, or having a business whose sole purpose is to meet a social need

38
Q

What does SMART stand for

A

Specific
Measurable
Acheivable
Realistic
Time bound

39
Q

What is business planning ?

A

A document created by a business or entrepreneur that provides details about each element of the business.

40
Q

Fixed costs

A

An expense that does not change when the sales or production volumes increase or decrease

41
Q

Variable costs

A

An expense that changes in proportion to how much a company produces or sells

42
Q

Sales revenue

A

The income recived from the companys sales of goods or services

43
Q

Profit / loss

A

The money made or lost when taking away the money spent on fixed costs
Profit = revenue - expenses

Business (6 decks)

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