Business In The Real World Flashcards
(32 cards)
What is a business?
An organization that produces goods or provides services to satisfy customer needs and wants in exchange for money or other value.
What are the key objectives of a business?
- Profit maximization
- Customer satisfaction
- Growth and expansion
- Social responsibility
What defines a Sole Trader?
Owned and operated by one person; easy to set up; unlimited liability.
What characterizes a Partnership?
Owned by two or more people; shared decision-making; unlimited liability.
What is a Private Limited Company (Ltd)?
Ownership is through shares, often family-run; limited liability.
What is a Public Limited Company (PLC)?
Shares traded on the stock exchange; limited liability; greater capital access.
What are Non-Profit Organizations focused on?
Social goals (e.g., charities).
What is involved in the Primary Sector of business?
Extraction of raw materials (e.g., mining, farming).
What does the Secondary Sector encompass?
Manufacturing and construction (e.g., factories).
What is the Tertiary Sector known for?
Providing services (e.g., retail, banking).
List common business aims.
- Survival (especially in the early stages)
- Profit and wealth maximization
- Market share growth
- Customer satisfaction
- Sustainability and ethical goals
What does SMART stand for in business objectives?
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
What is an advantage of being a Sole Trader?
Full control over decisions.
What is a disadvantage of a Partnership?
Potential conflicts.
What is a key advantage of Ltd and PLC business structures?
Limited liability.
Name three internal stakeholders in a business.
- Owners
- Employees
- Managers
List three external stakeholders.
- Customers
- Suppliers
- Government
What are some factors to consider for business location?
- Proximity to customers
- Cost of premises
- Transport and infrastructure
- Availability of labor
- Government incentives or regulations
What role do entrepreneurs play in business?
Identifying business opportunities, taking risks to innovate and solve problems, driving economic growth.
What are key entrepreneurial skills?
- Creativity
- Resilience
- Decision-making
- Leadership
Why is business planning important?
- To secure funding
- Set clear objectives
- Anticipate risks
What are the contents of a business plan?
- Executive Summary
- Business Objectives
- Market Research
- Marketing and Sales Strategy
- Financial Forecasts
- Operational Plan
What are some external influences on businesses?
- Economic Factors
- Social Trends
- Technological Advances
- Environmental Issues
- Political/Legal Factors
True or False: Inflation can lead to rising costs for businesses.
True
