business Flashcards
(254 cards)
1
Q
reward
A
return on your risk
2
Q
risk
A
element of something going wrong
3
Q
CELL meaining
A
capital
enterprise
land
labour
4
Q
capital defintion
A
equipment used, tools and finance
5
Q
enterprise definiton
A
you and the skills of your people
6
Q
land defintion
A
the site on which you are based
7
Q
labour defintion
A
the employees
8
Q
primary industry
A
extracting natural resources eg quarries and farmers
9
Q
secondary industry
A
convert those resources (from primary industry) into goods eg manufactures
10
Q
tertiary industry
A
services eg retailers like my cafe
11
Q
4 functions
A
human resources
finance
marketing
operations
12
Q
HMRC
A
his majesty revenues custom
13
Q
sole trader
A
is the company
unlimited liablity
tell HMRC
tax return
14
Q
unlimited liablity
A
high risk as you put everything on the line
15
Q
limited company what you need to do
A
filing accounts
coorperation tax
paye as you earn
national insurance
16
Q
in a limited company how much of each salary is taxed for the company
A
13 percent
17
Q
external factors
A
political
economic
social
technological
legal
ethical
18
Q
external factors:
political - what it involves
A
how and to what degree a government invests in the economy. this can include government policy, political stability and foreign trade policy
19
Q
external factors:
economic - what it involves
A
this includes economic growth, interest rates , exchange rates, inflation, disposable income
20
Q
external factors:
social - what it involves
A
involves shared belief and attitudes of the population includes population growth and age distribution
21
Q
external factors:
technological factors - what it involves
A
new ways of producing good and services, new ways distributing them and communicating with target market
22
Q
external factors:
legal - what it involves
A
health and safety and equal opportunities, advertising standards and consumer rights and employee rights and equality act 2010
23
Q
external factors:
ethical - what it involves
A
stands for ethical principles and morals
24
Q
percentage change equation
A
amount of change / old times 100
25
fair trade products definiton
changes to the way trade works through better prices and decent working conditions and a fairer deal for farmers and worker in developing countries
26
social responsibility defintion
a moral obligation on a company or an individual to take decisions or actions that is in favour and useful to society.
27
external cost defintion
costs that are not borne by the person or entity that causes them eg result of market failures such as when a company pollutes the environment without paying for the clean-up costs
28
non renewable energy defintion
a natural substance that is not replenished with the speed at which it is consumed - finite resource eg fossil fuel
29
pressure group defintion
a group that tries to influence public policy in the interest of a particular cause
30
sustainability defintion
the ability to maintain or support a process continuously over time
31
recruitment process
1. job analysis / identify a vacancy
2. job description - job title and responsibilities
3. person specification eg skills and characteristics
4. advertise the vacancy - internally and externally
5. shortlist of best applications sent in
6. interview - ask everyone same questions - scores and tests (optional)
7. offer the job
32
internal stakeholders
are people whose interest in a company comes through a direct relationship eg employmee, owner, investor
33
external stakeholder
do not directly work for or with a company but are affected by the actions and outcomes of the business
34
shareholder
owns a stock in you company
35
what does SMART stand for
specific
measurable
achievable
realistic
timely
36
ten key sections of a business plan
1. idea
2. aims and objectives
3. market
4. location
5. personal / human resource
6. buying and production / operations
7. premises and equipment
8. financial forecast
9. marketing
10. source of finance
37
business plan:
idea - what goes in the section
name and legal structure, overview and general concept
38
business plan:
aims and objectives - what goes in the section
year 1 - survive
immediate and long term achievements you want
39
business plan:
market - what goes in the section
size of market , customers (ideal) , targeting who and competitors
40
business plan:
location - what goes in the section
where it will operate and how you use channel distributions
41
business plan:
human operations / personal - what goes in the section
who will run the business and roles and responsibilities of employees
42
business plan:
buying production / operations -what goes in the section
buying supplies , raw materials and fineshed products and methods and costs of production
43
business plan:
premises and equipment - what goes in the section
cot of the premisses and equipment's in order to run the business and machinery
44
business plan:
financial forecast - what goes in the section
Cash - create cash flow forecast
Profit - income statement
Net worth - value of the business and statement of financial position
45
business plan:
marketing - what goes in the section
how you promote, price promotion , product and place
4Ps
46
business plan:
sources of finance - what goes in the section
how much is required to start ad run the business
investors loans and savings
47
what are the 4Ps
promotion
price
production
place
48
reasons to start a business
-to produce a good or service
- to distribute products
- to benefit society
- to fill a gap in the market
- to fulfil a business opportunity
49
what are goods
tangible
50
what are services
intangible
51
what are wants
things that people would like but they can survive if they don't own the item
52
what are needs
are needed to survive eg shelter, food and water
53
opportunity costs
what you give up in order to ain something
54
two types of private sector
in cooperated and unincorporated
55
what are forms of unincoroporated business
sole trader
partenrship
56
what are forms of in cooperated business
public limited company
private limited company
57
unincorporated meaning
the owner is the business -
no legal difference
unlimited liability
most are sole traders
58
incorporated meaning
legal difference between the business and the owners
limited liability
most are private limited companies
59
sole traders defintion
can also employ people but there not business owners
60
sole trader advantages
quick and easy to set up
61
sole trader disadvantages
unlimited liablity
62
partnerships
- owned by one or more people
-have an agreement - contract written down
- partners between them own all the business assets and owe all business liabilities
63
partnership agreements
- how profits are shared
- what each partner invests
- how decisions are made
-what happens if another partner wants to leave or die
64
partnership advantages
- simple way for two or more people to run a business
- minimal paperwork
-specialists usually part of the business
65
partnership disadvantages
- unlimited liability
- one partner makes a mistake all pay consequences
- complicated to sell or close
66
limited company
owners of a company are shareholders (whoever owns the biggest percentage) but is run by directors
67
limited company advantages
-shareholders are protected
-stable form of structure
-easier to finance
68
limited company disadvantages
-greater admin costs
-public disclosure of company information
-directors legal duties
69
continuity
owners change but business continues
70
net worth equation
share price times number of shares
71
public disclosure
competitors can see your accounts
72
3 advantages of using robots to deliver foods
- dont have to pay delivery drivers
- eco friendly - reduce emissions
- USP
73
USP menaing
unique selling proposition
74
2 negatives of robots delivering foods
- less jobs available
- able to hack them
- hazard to blind people
-maintain costs and issues
-initial start up costs are high
75
benefit of ecommerce of a business
don't have to travel to buy the product
open / can buy from 24/7
larger target audience
76
disadvantage or ecommerce of a business
initial costs to set up a website
delivery takes longer
increased coemption
77
stakeholders
are individuals and organisations that are affected the activities of a business
78
intranets defintion
are communication networks which can only be accessed by an organisations employees
79
extranets definition
are similar to intrants but can also be accessed by other organisations such as suppliers
80
e - commerce
the act of buying or selling a product using an electronic system such as the internet
81
how does e-commerce access markets
-easier to navigate
-less costs
-nation wide
-able to sell during pandemics
- global markets
- easier to buy
-dont have to travel
- everything in one space
82
information and communications technology
is the computing and communication systems that a business might use to exchange information with stakeholders
83
public limited companies
a company that commonly offers its shares to the general public via stock exchange
84
plc menaing
public limited company
85
does a limited company have unlimited or limited liablity
limited liablity
86
features of a plc
public limited company
limited liability
must raise 50 000
share capital
minimum of 2 directors
one company sectary
87
flotation
moving from a private limited company and going public and becoming a public limited company
88
what does becoming a public limited company
stock exchange access
finance from investors avaiable eg pension funds, investment and banks
89
what does PLUMS stands for
profit distribution - able to expand profits
L limited liability
U
Mangement - cant control shareholders
Sources of finance - stock exchange excess
90
why do plc only share 10 - 20 percent of the business
so they have still have most of the control and dont have a say in the running of the business as there a minority share
91
stock market flotations
the process of a private limited company offering shares on the stock market therefore becoming a public limited company
92
why become a plc - public limited comapny
advantages
1. raise enternal finance
- stock exchange
- enormous amount of finance can be raised
- means expansion projects can be financed by share capital raised from foetation rather than using S-O-F
2. stable business ownership structure
- bank underwrites floation
- investors sell shares to other investors
3. higher prestige
- increased media exposure
-increased sales
-increased revenue
4. shareholders retain limited liablity
5. become larger
-econ space
-market share increase
-sales increase
-profit increase
93
how raising enternal finance happens as a plc
1. raise enternal finance
- stock exchange
- enormous amount of finance can be raised
- means expansion projects can be financed by share capital raised from foetation rather than using S-O-F
94
how having a stable business ownership structure happens as a plc
2. stable business ownership structure
- bank underwrites floation
- investors sell shares to other investors
95
how having a higher prestige happens as a plc
3. higher prestige
- increased media exposure
-increased sales
-increased revenue
96
how becoming larger happens as a plc
5. become larger
-econ space
-market share increase
-sales increase
-profit increase
97
how having a shareholders happens as a plc
retain limited liablity
98
econ space meaning
economic scale
99
ethics
refers to whatever a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right
100
what profit is equivalent too
revenue
101
what is revue equivalent to
profit
102
social responsiblity
an approach to managing a business in which the interests of all groups in society are taken into account when making deciosn
103
external costs
a business activities result in harmful effects on other people not directly involved in production
104
scarce resources
insufficient products
105
environmental reporting
business environmental performance to the general public
106
NGO meaning
non profit organisation
107
non profit organisation what is it
a business that is set up to persuade objectives that benefit society
108
can profits be generated in a NGO
yes but they are not anywhere near the main aim
109
how do NGO often source money
fund raising
110
are NGO in corotated or unincorporated
both
111
advantage of an NGO
reduced taxes
112
example of an NGO
Ikea
113
business aim
is the overall target or goal
114
business objective
are smaller targets to reach your aim
115
profit maximisation
objective of business to achieve the largest profit surplus of revenues over expenditure
116
financial aims
aims set around money , can have more then one
117
survival aim
objectives which is to be able to continue trading or giving a service
118
common aim
starts up to stay in a business neither profit or loss
119
profit aim
having money left over after costs taken from revenue
120
sales aim
aim to sell a certain amounts of a product
gives employees a common goal
121
market share aim
increase market share by a set percent over a year
122
security aim
able to withstand enough to be financially stable
123
market leader
set prices for whole market eg Tesco is the market leader of supermarkets
124
social aim
committing to act ethically
125
non financial aims and objectives
these aims are not linked to monetary success and personal aims can be linked to social issues
126
satisfaction aims
turning a hobby or passion into a business
127
challange aim
starting something from scratch succeed on your own terms
128
control aim
having control over the decision making and where you want the business to go
129
4Ds
different people
different market
different stages
different aims and objectives
130
law
refers to what the business has to do legally eg pay minimum wage or not pollute water supplies
131
ethical advertising
are the adverts truthful and fair
132
ethical labour/ employees
paid above minimum wage , more holidays
133
ethcial supplies and raw material
buying materials from environmentally friendly companies and look after properties
134
ethical consumers
reward systems is the product actually good
135
ethical charities
donations
136
ethical environment
plant a certain amount of trees to offset co2 produced
137
FROGS meaning
Feature of the business
Rivals of the business
Objectives of the business
Growth of the business
Stakeholders in the business
138
first objective
survival
139
second objective
profit maximisation
140
third objective
growing in positive cash flow
141
fourth objective
customer satisfaction
142
fifth objective
become a company (limited)
143
sixth objective
able to create shareholder value
144
seventh objective
10 percent return shares every year for shareholders
145
eight objective
become ethical
146
ninth objective
environmental and sustainability
147
shareholder value
price per share increase share of the profits going to the owners (yield)
148
when can you have shares
when your a limited company
149
why use SMART
use for objectives
150
why would customers pay more for ethical products
they know its used for either used to get fair trade products, some goes to charity or other ethical issues
151
how can you be ethical in turns of products
-sustainable products
-fairtrade products
-pay on time
152
how can you be ethical in turns of enviroment
-recycle products
-paper packaging
-local produce
153
how can you be ethical in turns of human resource
-wages above minimum wage
-free training
154
how can you be ethical in turns of finance
- no money laundering
- fair price for products
155
how can you be ethical in turns of community
be involved with schools
litter picking
156
how can you be ethical in turns of marketing
- no false information
- use social media rather then paper save trees
157
aim
main goal of the business
158
objective
support the aim but more specific on how your going to achieve it
159
what two ways can a business change
evolves or reacts
160
private sector organisation who owns them
are owned by individuals
161
public sector organisations who owns them
owned by the government
162
internal factors
- performance of business
- influence of stakeholders
- leadership/ owners
163
external factors
- state of the economy
- level of the competition
- technology improvements
- new legislation
and pestle
164
what is pestle
list of external factors
Politics
Economy
Social
Technology
Legal
Ethics
165
business reactions
SPEW
166
what does SPEW stand for
Survival or growth focus
Product range increase or decrease
Entre exist a specific market
Workforce increase or decrease
167
tarif
taxation on imports
168
shareholders
own a part of a business
may also work in the business
prioritised growing value of shares
example of a stakeholder
169
dividends
are the part of a companies profits paid out to shareholders each year
170
types of shareholders
internal
external
connected
171
internal
in the business
172
external
not binned by a legal contract to the business
173
connected
relationship to the business
174
negotiation
occurs when two sides discuss what they want and try to find a compromise
175
owners
to whom a business belongs
known as shareholders in a limited company
176
stakeholder groups
employee
owners / shareholders
local community
government
suppliers
customers
177
objectives of a employee
secure jobs and higher earnings
178
objectives of owners and sharehoders
high divenedends and share price
179
objectives of local community
local jobs, minimise environmental impact on the community
180
objectives of the government
legal behaviour, taxes paid, growth
181
objectives of suppliers
paid on time, kept informed of any changes to the business
182
objectives of the customers
useful accurate information on the product, good service , value for money
183
economy
made up of millions of individuals consumers many thousands of business and governments.
184
consumers
individuals who use goods and services produced by the business
185
economic climate
describes the state of key factors within a country such as the levels of goods and services produced and number of jobs available
186
improving economic climate
employment increase
production increase
income increase
spending increase
187
reducing economic climate
employment decrease
income decrease
production decrease
spending decrease
188
interest rates
refer to the cost of borrowing money or the reward for saving money expressed as a percentage
189
TED meaning
trend - interest rates high or low
extent - how much
duration - how long
190
inflation
refers to the rate at which prices are increasing
191
inflation increases whilst
business costs increase
consumer spending increase
192
what are factors when choosing where to locate
cost
sales
image
193
when deciding on where to locate you look at proximity to
market
labour
materials
competitiors
194
where to locate:
nature of the business
retail
service
maunfacturing
195
where to locate:
technology
e- commerce and or fixed premisis
196
where to locate:
retail
close to customers
busy areas
competitors close by
197
where to locate:
service
close to customers
determined by type of service
sometimes service can be located anywhere
198
where to locate:
manufacturing
close to customers not important
located closely to raw materials
good transport links
199
protectionist measures
policies that government used to protect their own business against foreign competion
200
factors affecting location
costs
proximity to market
type of business
technology
transport links
availability of resource
201
imports
goods and services purchased from over seas consumer
202
income elastic products
demand changes to income on more expensive item
203
non income elastic products
demand not affected by income change
204
business plan
document setting out what a business foes and what it hopes to achieve in the futre
205
business planning
process of producing a business plan
206
loam
amount of money provided to a business for a stated purpose in return for regular repayments including interest charges
207
uncertainity
occurs when there is a lack of information about a certain situation
208
risk
possibility of something going wrong
209
final section of business plan should include
revenue
total costs
fixed costs
variable costs
profit
210
what does revenue mean
value of its sales
211
total costs
fixed and variable costs added together
212
fixed costs
do not change with output (dont change)
213
variable costs
do not change with output (can change)
214
profit equation
revenue minus total costs
215
lack of experience
dont have the necessary skills
216
what is an example of fixed cost
rent , insurance, utilities
217
what is an example of variable cost
inventory , raw materials, wages, sale commissions
218
gross margin
percentage of a company's revenue that's retained after direct expenses
219
gross margin equation
net sales minus COGS over net sales times 100
220
COGS meaning
cost of goods sold
221
globalisation
the trend for markets to become worldwide
222
MNC meaning
multinational company
223
multinational company
produce goods and services in one country
224
drawbacks of globalisation
uncertainity
changes
lack of experience
cost
competition
threat of takeover
unemployment
225
SPICED meaning
strong
pound
impacts
cheap
exports
dear
226
exchange rates
price of one country in realtion to another
227
imports
products brought in from another country
228
falling rates
exports cheaper sell more abroad
imports expensive sell less
229
rising rates
exports expensive difficulty selling abroad
imports cheaper sell more
230
expansion
occurs when an enterprise becomes bigger by increasing output and sales
231
internal growth
organic growth when a business gets bigger by selling more products
232
organic growth
increases production of sales of its products
233
external growth
occurs when a business gets bigger by joining or buying other business
234
intergration
process by which two or more business join together
235
market capitilisation
company measures the value of its shares
236
franchise
when a franchisor sells the rights to its products to a franchisee
237
franchisee
buys a franchise usually in return for a fee and a percentage of turnover
238
franchisor
sells a franchise usually in return for a fee and percentage turnover
239
pros of franchising
usually cheaper
faster rate of expansion
240
cons of franchising
usually slower
more expansion
241
how can you expand
internal and external
242
internal expansion ways to do it
-using internet platforms
-open more shops (factories)
-get another firm to carry certain tasks for you - outsourcing
243
how is using internet platform a negative
hacking
244
what does CMA meaning
competition and market authority
245
external expnasion how does it happen
merger and takover
depending on the type of firms this is the type of intergration
246
merger
two firms join together
247
takeover
one firm buys 51 percent or more shares of the business
248
aquasition
gaining a business
249
one way a business can expand orginacally
merger
250
economies of scale
occurs when a business unit costs of production fall as its output rises and the business expands
251
diseconomies of scale
occur when the cost per unit increases as a business expands
252
outsourcing
occurs when a business uses another business to produce for it
253
channel of distribution
describes the way in which ownership of a product is transferrered from the producer to the consumer
254
vertical intergration
when one firm another firm at a ins
