BUSINESS Flashcards
(111 cards)
1
Q
patnership
A
business owned between 2-20 partners
2
Q
retained profit
A
profit that is distributed to shareholders as dividends
3
Q
dividends
A
sum of money paid regularly by a company to its shareholders out of its profits
4
Q
qualitative data
A
databases on opinions of those being asked
5
Q
marketing mix
A
price
products
place
promotion
6
Q
backward vertical growth
A
a business merges / takes over a business THAT SUPPLIES IT with goods/services
7
Q
competitive pricing
A
prices set based on prices of competitors
8
Q
external growth
A
growth of business by merger / takeover
9
Q
flat organisational structure
A
adv : workers communicate with most colleagues - good for generating ideas
Dis: little chance of promotion, manager oversees everything so could be pressured
10
Q
revenue
A
money received from sales
11
Q
promotional pricing
A
price reduced to give products a boost
12
Q
penetration pricing
A
pricing set lower than competitors , usually for new businesses to break into market - short term
13
Q
e commerce
A
selling electronically
14
Q
owners capital
A
savings put into business by owners
15
Q
horizontal growth
A
merger/ takeover where the 2 businesses are involved in similar operation
16
Q
diversification
A
when a business merges / takes over another business with no connection
17
Q
tall organisational structure
A
adv - promotions , clear lines of communication
dis - being to controlled by their line management - being top heavy
for large organisations
18
Q
takeover
A
busienss takes a controlling interest in another business- e.g buying 50% of shares in it
19
Q
logistics
A
process of organising the transport of goods from seller to buyer
20
Q
liquidity
A
business pays its short term debts
21
Q
skimming
A
new product that is more advanced than competitors , so price is set high as consumers are willing to pay
22
Q
procurement
A
the management of purchasing within a business
23
Q
fringe benefits
A
additional benefits-
health insurance
childcare
gym membership
24
Q
internal methods of recruitment
A
notice boards
company website
emails to staff
25
market share
% of total amount of product made in comparison to the market
26
share issue
money raised from investors by selling new shares
27
deed of partnership
document stating who owns there business, how much money each partner invested, and roles
28
trade credit
business buys goods to sell and does not need need to pay supplier for a period of time
often 30 days
29
variable cost
costs that change
wages
materials
30
forward vertical growth
when a business merges / takes over a business THAT IT SUPPLIES goods and services
31
quantitave data
data collected off facts and numbers- easier to analyse than qualitative
32
loan
sum of money borrowed for a stated period at interest
33
net profit
gross profit - expenses
34
economic climate
refers to how well the country is doing in terms of income and employment
35
public limited company
sells its shares to whoever wants to buy
36
37
flow production / mass production
1 product is made continuesly
ad. - large quantities produced for sale
dis. - repetitive + large stocks of material have to be brought in
38
total costs
total fixed + totall variable
39
external recruitment methods
websites
newspaper
social media
magazines
40
unlimited liability
business owner is responsible for repaying all business debt
41
fixed costs
costs that stay the same
rent
tax
42
sale of assets
items sold by the business
43
batch production
1 type of product is made + then production is switched to make a different products
e.g = paint / bread
adv.. no storage costs goods made to order
dis.. repetitive and boring for workers
44
proximity
fancy word for - nearest to’
refers to market , raw materials , labour supplies
45
limited liability
owners only loose the money they originally invested into the business
46
external stakeholders
local community
suppliers
customers
government
47
job production
products made individually
adv - high quality so can charge high price
dis - production slow + high cost production
48
expenses
wages
mortgage
insurance
electricity
49
internal stakeholders
people who work in the business
50
assets
items owned by business
vehicles
buildings
stock
even non physical things like a ..
good reputation
51
merger
2+ businesses agree to join to become 1 business
52
private limited company ltd
usually for a smaller businesss
, it can sell shares to invited people only.
53
quality control methods
customer questionnaires
take random samples of products in middle of production and end
54
supply chain
raw materials sourcing - production - storage- distribution- sales
55
adv of partnerships
moreowners = more ideas
shared workload
more investments from owners
56
disadvantages of partnership
unlimited liability
legally responsible for other partners
disagreements
profits shared
57
advantages of private limited companies
limited liability
incorporated -> can trade even after partner dies
easier to get a loan because of the secure structure in comparison to a sole trader
owners have control over business as everyone must agree to sell
58
disadvanteges to a private limited companies
expensive
publish accounts each year
longer to set up
59
what is a private limited company ltd
business that has its own legal identity
60
public limited company - plc
business has it sown legal identity and its shares are listed in the stock market
61
advantages of public limited company
easier to raise capital
best for expansion
limited liability
incorporation - as its own legal identity
62
disadvantages with public limited companies
publish accounts every year and they must be public
hostile takeover - taking 50% of shares
hard to get shareholders to agree - if they have a big decision hard to get everyone to agree because there are so many
more shareholders = more people want profit
63
floatation
private- public
64
businesses aims
survival
growth
maximise profit
increase market share
be more ethical
65
what are a businesses objectives
PACIFIC GOALS FOR THE BUSINESS
66
what affects aims / objectives of a business
side of a business
competition of business- increase market share
type of business
67
why do aims and objectives change
new laws
changing in the economy - people earn less, products might have to be cheaper
environmental expectations - people being more eco friendly
68
69
why are objectives set
measure there progress
work towards something
motivates employees
70
types of costs
fixed costs - rent
variable - materials
71
why make a business plan
something to work towards
convince people to invest
easier to set aims
see if business is viable or not
72
what’s is disadvantages of business plan
stick too tightly
takes time and money
too optimistic
73
internal expansion - when a business grows by expanding by its own activities
opening new stores
outsourcing
e commerce
franchising
74
outsourcing - internal expansion
outsourcing is when you pay another firm to do tasks for you
-example- pay another firm to manage your website
ADV=
- could do a better job than you
DIS-
- expensive
-less control
75
76
franchise - internal expansion
franchise is when a company expands by letting other companies use their brand in return for a fee or %
ADV -
extra revenue
boosts market share
boots market awareness + low risk
DIS -
damage reputation
less control
77
e commerce -internal expansion
selling goods online
advantages ;
- anytime and anywhere you can set up
- target target audience
- more convenient
- cheaper than new store
dis-
expensive
- must be good otherwise bad rep
- returns are hassle
78
external expansion - expanding by working with another business
merger is where two firms join to firm a larger firm
eg.. curry’s pc world
takeover when a firm expands by buying 50% or more shares in the businesss
79
who can you external expand with
supplier- ensure quality of your materials
competitor
80
dis of external expansion by working with another business
bad environment- now the 2 businesses have come together employees may be scared of loosing there job because there is too many employees running one business
harder to manage
81
disadvantages of expansion
harder to manage
people feel less significant if there at the bottom of the tall organisational structure
decisions are slower
82
interest rates
when you borrow money you have to pay more than originally invested . extra amount dependent on the interest rates
83
how does slow interest affect economy
cheaper to borrow money
more people borrow money
more people spend money in economy
84
how do high interest rates affect economy
borrowing money is more expensive so less people do it
people have less money and higher costs
less spending
demand for product decrease
employees sacked
85
how are people who are save money affected by interest
when you keep money in the bank , the bank give you extra money based on what you keep with them
higher interest rates - good for savers bad for borrowers
low interest rate - bad for savers good for borrowers
86
problems with overdraft
hugh interest rates
87
consumer spending
if prices RISE FASTER than peoples income, spending DECREASES
if prices RISE SLOWER than income , spending INCREASES
88
CONSUMER LAW
products should be fit for purpose
product should match description
89
why is flow production examples of dis and adv
ADV:
FAST
can work 24/7
robots - dont have to pay so many wages
simple tasks
DIS
high initial cost - machinery + tech
workers can get bored
90
JOB PRODUCTION - examples of ADV and DIS
ADV
high quality
unique
DIS
workers must be specialists
cant be 24/7
high running costs ( wages are high )
takes time
91
ADV and DIS of internal recruitment
ADV :
you already know them
faster
comfortable with business
cheaper
DIS-
fewer people to choose from
no new ideas
92
ADVand DIS of external recruitment
ADV;
more people to choose from
greater chance of finding the perfect person
disadvantages :
expensive
longer
dont know them
extre training ( maybe)
93
INDUCTION TRAINING
cheap as get other employees to do it
more motivated and confident
less likely to mess up
HOWEVER
employee doing it doesn’t work
94
ON THE JOB TRAINING
ADV -cost effective
the actual job
dis :
employee doing it doesn’t work
passes on bad practises
not experts
95
OFF THE JOB TRAINING
ADV_
specialists
higher quality
DIS -
expensive
not specific
96
ADVANTAGES OF TRAINING
motivated employees
satisfied employees
confident employees
less likely to make mistakes
97
PURPOSES OF MARKET RESEARCH
UNDERSTAND PRODUCTS
=price products well
= promote products well
= create goood products
= stay competitive
OVERALL INCREASE SALES
98
PRIMARY RESEARCH EXAMPLES +
FOCUS GROUPS
QUESTIONNAIRES
PHONE CALLS
ADV=
relevent , up to date and specific
DIS =
longer , more expensive , time consuming
99
SECONDARY DATA EXAMPLES
GOV
INTERNET
adv= large amount s, readily available , usually free
dis =
outdated , not as relevant
100
FACTORS INFLUENCING PRICE
high cost = high price
MARKET
luxury market = high price
normal market = low price
COMPETITION
hugh competiton = competition price
PRODUCT LIFE STYLE =
new product = high price
101
PRODUCT DIFFERENTIATION
MAKING YOUR PRODUCT UNIQUE
102
PRODUCT DIFFERENTATION EXAMPLES
making something unique and specific
e.g - apple releasing a new iphone with unique features - charge high price because everyone wants it
great brand image = would u rather buy a gucci shirt or a GAP shirt
103
PRODUCT LIFE CYCLE
invest money fir development -
- introduct the product to investors
- growth from new product entering the market everyone wants to have it
- maturity - product is neither new or old
decline - product is no longer popular , new versions have been made , so its not special no ones buyinge
104
PROMOTION METHODS
sponsorship
yt videos
newspapers
= remind customers of your brand, show people new designs
105
TELESALES
selling over the phone
think its a scam
free
low reprutation of brand
106
RAISING FINANCE short term
trade credit - multiple months to pay for purchases
- time to pay back debt
-large fee if late
overdraft - take out more money than you have
- pay stuff on time even if u can’t actually
- high interest rate
107
RAISING FINANCE LONG TERM
LOAN -
large amount and long term
interest rates
they’ll be after u if u dont pay it
108
4markers
knowledge - …… can be a result off…..
application - x2 + small explanation
analysis - as a result of this ……
109
6 marker
knowledge = one advantage ….
one reason …..
app = this ensures CASE STUDY REFERENCE can reduce / increase / ect…………
pg2
knowledge =
another advantage / disadvantage / reason …..
app - CASE STUDY EXAMPLE … this leads to more market share increasing profit
pg3
KNOWLEDGE APPLICATION
OVERALL = KNOWLEDGE APPLICATION
110
9 MARKER
pg1 - LITERALLY 2-3 LINES
KNOWLEDGE - an advantage / disadvantage / reason ……..
UNDERSTANDING - this increase / helps / provides / improves …….
PG2
KNOWLEFGE
APP
ANALYSIS
PG3
KNOWLEDGE
APP
ANALYSIS
PG4
EVALUATION
overall i think the business should do this because …….. it will help …… increasing profit and …….. i choose this over the other option ….. because it increases market share
111
7 marker
APP
AN
APP
AN
CHOOSE SIDE
EVAL
