Business in the real world Flashcards
(48 cards)
1
Q
Good
A
a physical product such as a car
2
Q
Service
A
3
Q
Customer
A
4
Q
Consumer
A
5
Q
Entrepreneur
A
6
Q
Entrepreneaurship
A
7
Q
Social Enterprise
A
8
Q
Enterprise
A
9
Q
Interest
A
10
Q
Interest rates
A
11
Q
Inflation
A
12
Q
Gross Domestic Product
A
13
Q
Sole Trader
A
14
Q
Profit
A
15
Q
Unlimited liability
A
16
Q
Aim
A
overall long term target of the business
17
Q
Objective
A
short term steps to meet its overall aim
18
Q
Objectives for a business
A
19
Q
Aims for a business
A
20
Q
Why do businesses set objectives
A
21
Q
Why objectives change
A
22
Q
Diseconomies of scale
A
when average unit costs begin to increase often because of business growth
23
Q
Organic Growth
A
when a business decides to grow on its own
24
Q
Franchise
A
is a business that gives the right to another person or business to sell goods using its name
25
Advantages of organic growth
business can maintain its own value
lower risk
benefit from economies of scale
25
Disadvantages of organic growth
return on investment could take a long time
slower growth
growth may be limited
25
Partnership
business that has between 2-20 owners
26
Advantages of a partnership
shared decision making
shared responsibility for debt
brings more skills and ideas
more capital
27
Disadvantages of a partnership
shared profits
conflict can occur between owners
unlimited liability
28
Private limited companies
a small or large business with limited liability
29
Limited liability
29
Advantages of private limited companies
limited liability
own boss
shares can be sold
29
Disadvantages of a private limited company
people can view businesses financial info
29
29
29
29
30
30
30
30
30
30
30
30
31
31
31
