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GCSE Business > Business In The Real World > Flashcards

Business In The Real World Flashcards

(64 cards)

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1
Q

Equation for Revenue

A

Price x Quantity sold

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2
Q

Equation for Profit or Loss

A

Total Revenue - Total Cost

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3
Q

Primary Sector

A

Industry involved in Raw Materials

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4
Q

Secondary Sector

A

Involved in using the raw materials to convert them to products

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5
Q

Tertiary Sector

A

Organisations that provide services-FAST FOOD RESTAURANT

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6
Q

4 Factors Of Production

A

Land
Labour
Enterprise
Capital

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7
Q

External Influences of a Business (name 3)

A

Social(age changes,family size)
Economic(interest rate,inflation)
Environmental(ethical)

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8
Q

Limited Liability

A

Owner/Shareholders have a separate identity from their business. Not responsible if anything happens to the business

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9
Q

Unlimited Liability

A

Shareholder are legally tied to the business

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10
Q

Main Business Objectives

A 
Survive
Profit
Shareholder value
Satisfaction
Market Share
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11
Q

Dividends

A

Sum of money paid by a company to it’s shareholders

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12
Q

Impacts Of Business Location

A 
Raw Materials.                       
Employment.                         
Competitors.                         
Infrastructure 
Proximity
Finance
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13
Q

Internal Growth

A

Occurs when a business get bigger by selling more products

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14
Q

External Growth

A

Occurs when a business gets bigger by joining or buying another business

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15
Q

Market capitalisation

A

Measures value of all the companies shares

Market price of share x number of shares

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16
Q

Franchise

A

Occurs when a franchisor sells the rights to a franchisee in return of fee and percentage of profits

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17
Q

Franchisee

A

Buys a franchise usually for a fee and a turnover

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18
Q

Franchisor

A

Sells a franchise in return of fee and a turnover

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19
Q

E-Commerce

A

Is the act of buying or selling a product using an electronic system such as the internet

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20
Q

Outsourcing

A

Occurs when a business uses another business to produce for it

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21
Q

Merger

A

Occurs when two or more businesses join together to form a new business

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22
Q

Takeover

A

Occurs when one business buys control of another

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23
Q

Economies of scale

A

Occur when a business’s unit cost of production falls as it’s output rises and the business expands

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24
Q

Diseconomies of scale

A

Occur when the cost per unit increases as a business expands

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25
Examples of economies of scale
Bulk buying Marketing Advertisment
26
Examples of diseconomies of scale
Poor communication Poor coordination Poor cooperation
27
Backwards intergration
Moving further from customer
28
Forwards intergration
Closer to customer
29
Horizontal Intergration
Horizontal integration is when two companies at the same stage of the production process merge or take over each other.
30
Conglomerate intergration
Operating in a completely different industry
31
Offshore
Setting up a business in another country
32
Reshoring
Returning a company to the original country
33
Goods
A physical product
34
Service
Intangible product provided by someone
35
Customer
Someone who buys a product from a business
36
Consumer
Is someone who uses good and services provided by a business
37
Entrepreneur
Someone who is willing to take risks to start a new business
38
Enterprise
Refers to a business of organisation. Can also mean someone who takes advantage of new business opportunities
39
Resources
Inputs in a business that are used to provide a good or service
40
Interest
Reward for Saving and the Cost of Spending
41
Interest rates
Refers to the cost of borrowing money
42
Inflation
Refers to the rate at which prices are increasing
43
Sole trader
Is someone who sets up a business on their own
44
Advantages of being a sole trader
. Quick and easy to set up . Make decisions for yourself . Keep or decide what happens to all profits generated
45
Disadvantages of being a sole trader
It can be stressful making all decisions yourself -A sole trader needs to handle all aspects of the business If the business goes wrong you have unlimited liability meaning you and your business are legally tied.
46
Profit
The sum of money left from total revenue when total costs are paid
47
Partership
Occurs when two or more people join together in a business enterprise to pursue profit
48
Deed of partnership
Is an agreement between partners that sets out the rules of the partnership, such as how profit will be divided and how the partnership will be valued if someone wants to leave
49
Private Limited Companies (Ltd)
Firms where shares are private. Shares/Ownership can only be sold if all shareholders agree
50
Public Limited Companies (PLC)
Firms where shares and ownership can be sold and bought by anyone. PLCs shares are available on the stock market
51
Advantages of Ltd
.limited Liability .incorporated .easier to get loans or mortgage .owners have a lot of control over how business is managed
52
Disadvantages of ltd
.more expensive to set up .lots of legal paperwork .legally obliged to publish its accounts every year
53
Advantages of PLC
.much more capital can be raised by plc than any other business .shares allow to expand and diversify the company .limited liability and incorporation
54
Disadvantages of PLC
.hard to get many shareholders to agree on how business is run .easy for someone to buy enough shares to take over the company .accounts have to be made public so competitors see if the business is struggling .more shareholders means theres more demand for dividend payments
55
Non-profit-organisation
These are firms whose goals are not solely for profit but to give back to the community
56
Social Enterprise
Firms that make money by selling products and its aims are to use profits to benefit society
57
Stakeholders
Anyone who is affected by a business' decisions
58
Who are the stakeholders
Owners- benefit from profit,high dividends and high share price Employees- benefit from profitability,growth and ethics Supplier-benefits from profitability and growth Local Community-profit from environmental impacts,ethical considerations,profitability and growth Government- benefit from profitability,growth and job creation Customers-benefit from customer satisfaction
59
What does a business plan do
Gives the business a clear idea of what they are going to need to do to be successful
60
Sections of a business plan
``` Personal Details Mission Statement Objectives Product description Product details Staffing requirements Finance ```
61
What is the location of a business influenced by
``` Raw materials Labour Supply Competition Location of the market Cost ```
62
Types of economies of scale
Purchasing Economies of Scale | Technical Economies of scale
63
Methods of organic growth
E-commerce Opening New Stores Outsourcing
64
Qualities of an entrepreneur
Hardworking Organised Innovative Willingness to take risk

GCSE Business (6 decks)

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