Business revision Flashcards
(22 cards)
What is an aim?
A broad, long-term goal that summarizes what a company wants to achieve.
What is an objective?
A specific, measurable goal that a company works towards to achieve its long term vision.
An example of a financial aim.
To increase revenue so that profits are more likely to increase.
An example of a non financial aim.
Customer satisfaction, employee satisfaction and environmental sustainability.
What is a hostile takeover?
A takeover without the managements knowledge.
What is a friendly takeover?
When both sides of the transaction consent to the deal.
Suggest three ways a business can grow in size?
Advertisement, opening new outlets and expansion overseas.
How is the size of a business measured?
Number of employees, revenue/turnover and volume of sales.
What is internal growth?
When a company grows within the business by opening new branches or introducing new products.
What is external growth?
When a company grows by joining with another company.
What is a merger?
Two companies joining together.
What is a takeover?
One company helping another.
What is globalisation?
When the world is becoming interconnected by a business.
What is retained profit?
The amount of a business’s net income that is kept within accounts rather than paid out to shareholders.
What is import?
Goods or services brought from abroad.
What is an export?
Goods or services from the uk that is sold abroad.
What is a barrier to trade?
Tariff and quotas.
What is a trade block?
A trading block between a group of countrys that promote trade between its members.
What is e-commerce?
Buying and selling through the internet.
What is ethical behaviour?
Companies to act in ways that stakeholders consider to be fair, moral and honest.
What is a stakeholder?
Anyone who has interest in a business.
What is a pressure group?
A group of people who share opinions and try to change the way a business acts.
