Business Studies Flashcards
(97 cards)
1
Q
What is a share holder?
A
Someone goes online and buys a share- a part of the company
2
Q
Business Activity
A
Selling good or services to meet the needs of the consumer whilst making a profit
3
Q
Economic Problem?
A
When all the need and wants for everyone cannot be provided
4
Q
Service?
A
Paying a person or company to do something for you
5
Q
Brand Recognition?
A
Well known brand, making you pay more
6
Q
Division of Labour?
A
Different stages to making a shirt for example- workers are split into different groups
7
Q
Privatisation
A
When the public sector moves the to the private sector
8
Q
Infrastructure
A
What people need when they go to a certain area
9
Q
Stake holders
A
People who have an interest in a business and can be impacted by a business or influences a businesses decisions
10
Q
Merge
A
When two businesses come together, friendly, agreed decision between two or more businesses
11
Q
Diversification
A
It is spreading risk into other branches
‘don’t put all your eggs in one basket’
12
Q
Horizontal Integration
A
Taking over a business the same level as you
13
Q
Forward vertical Integration
A
Taking over a business higher than you
14
Q
Backward vertical Integration
A
Taking over a business lower than you
15
Q
Conglomerate
A
iness who owns completely different businesses in different industries
16
Q
Takeover/Acquisition
A
When a company buys more than 51% of shares becoming owner (forcefully)
17
Q
VAT
A
Taxes
18
Q
What are the four factors of production
A
- Land
- Labour
- Capital
- Enterprise
19
Q
Land?
A
Space
20
Q
Labour
A
Workers
21
Q
Capital
A
Machinary Laborers are using and money and equipment
22
Q
Enterprise
A
People who think of ideas
eg. Managers, CEO’s & Entrepreneurs
23
Q
What are the economic sectors?
A
- Primary
- Secondary
- Tertiary
24
Q
What is Primary?
A
Extraction of raw materials
25
What is Secondary?
Taking raw materials and turning into a product
26
What is Tertiary?
Service sector- something you paid for but cannot physically take purchase)
27
Examples of Primary
Forestry, Fishing, Farming & Mining
28
Examples of Secondary
Car manufacturers, steel works, Dress making & Builders
29
Examples Tertiary
Legal Services, Distribution, Customer Service, Accounting, Beautician, Drivers & Cleaning
30
Industrilisation
When a company becomes richer, larger and stronger in second sector
31
De-industralisation
When a company is weaker, shrinking and losing money in second sector after hardship
32
Public Sector
Business or company controlled by the government
33
Enterprise
The human ability to show the ability in seeking out and using new and often risky task or action
34
Entrepreneur
Someone taking the risk of starting their own business`
35
Benefits of becoming an Entrepreneur
1. Fame of success
2. Challenge and reward
3. Independence
4.Independence
5. Sharing an idea
6.Using personal skills and interest
7. Becoming wealthy
36
Disadvantages of becoming an Entrepreneur
1. Failure
2. Money Loss
3.Not a lot of time off
4. Huge responsibility
5.No help
6.Losing self confidence
37
What is a characteristic
Part of a person perhaps derived from genetic factors, which distinguish him/her from others
38
What is a skill
An ability which people acquire through learning and practise
39
Example of characteristic
Creativity, leadership, organisation, patience & responsibility
40
Example of skill
Mathematics, Communication, Managing Finance & Computer skills
41
Calculated risk?
Weighing up pros and cons, still a risky option but making sure there is more of a chance of success
Entrepreneurs use this a lot
42
What are way you can describe size of business?
-Number of employees
-Revenues/Sales
-Values of goods produces
-Value of capital employed
43
What are two ways a business can grow?
Internal and External Growth
44
What is internal growth?
What is it also known as?
Expansion of business by meaning of opening new branches, shops or factories
Known as also organic growth
45
What is External growth?
What is it also known as?
Expansion achieved by means of merging or taking over other businesses whether from same or different industries
Also known as inorganic growth
46
What are the types of organisations? (5)
1. Partnership
2. Sole trader
3. Public limited company
4. Private limited companies
5. Co-operatives
47
What is a public limited?
Anybody can buy shares and stocks of company
48
What is private limited?
Only family or friends can buy shares and stocks from company
49
What is joint venture?
Two business coming together for a business adventure and come together for a specific amount of time
50
In a joint venture what do companies share
Assets, responsibility, effort, fair contribution
51
What is profit?
total money a business earns after from there revenues after the product is sold
52
What is a franchise?
when a franchiser/business owner sells the rights of a branch to be run other business owners in exchange for a percentage of the profit
53
What is a partnership
A business formed by two or more people
54
What is a co-operative
Form of partnership, no more than 20 members
55
What are the different types of co operatives
1. Financial
2. Housing
3. Workers
4.Produces
5. Consumers
56
Why do businesses set goals?
Motivation, plan accordingly, keep focus clear, helps remain on track and sense of purpose assigning clear role and responsibilities clear
57
Growth?
Expanding internally and externally in sales & output
58
Profit maximisation
Meet your goal in profit that you want to be making more money coming in less going out
59
Increase market share?
Gives more popularity and increasing influence over customers and suppliers
60
Survival?
For a company, usually one that just started or in an economic problem, to survive in the industry they are in eg. not a small business being taken over by a larger company
61
What is internal stake holders (within organisation)
- Stakeholders
- Management
- Owners
- Employees
62
What is external stakeholders (outside organisation)
- The government
- Customers
- Suppliers
- Local community
- Leaders
- Banks
63
What are objectives of public sector (government) businesses?
-Financial
-Service
-Social
64
Financial? (for public sector)
pump profits back into business
65
Service? (public sector)
Meet quality targets set by government
66
Social? (public sector)
Create employment in area or high unemployment- give back to society
67
WHat are the three theories?
Taylors, Maslow & Herzberg
68
Taylor's Theory
Motivated by money alone- Employees should be paid on their performance
69
Maslow's Theory- Hierarchy
People's motivation to work stemmed from the need to fulfill their basic needs
70
Maslow's theory most important to least important.
- Basic needs
- Safety and security
- Love and Belonging
-Self Esteem
- Self- actualization
71
Herzberg Theory
Two factors of motivation:
1) Motivators
2) Hygiene Factors
72
What are motivators
Factors that directly motivate people
73
What are Hygiene factors
Not enough on their own to motivate but if taken away workers are demotivated
74
What is high labour turnover?
A lot of people quitting or having to be replaced
75
What is rewards with money?
Monetary Rewards
76
What are examples of monetary rewards?
-Salary
-Wages
- Commission
- Profit Sharing
- Performance Related Pay
- Share ownerships
77
Salary?
A fixed payment regularly- set amount for the whole year
78
Wages?
Fixed payment regularly based on performance every week depending on how many hours or items you make
79
What is time rate?
How many hours you put in determines your pay
80
What is piece rate?
How many products you make determines pay
81
Commission?
Pay is based on sales employees make, percentage for every sale made
82
Performance related pay?
Getting paid individually based on performance of employee
83
Share Ownership?
Gifting employees shares of company
84
What are the 5 functions of management?
1. Planning
2. Organising
3. Coordinating
4. Commanding
5. Controlling
85
What is delegation?
When a manager delegates/gives/ hands off employee specific tasks
86
What are three style of leadership
1. Autocratic
2. Laissez- faire
3. Democratic
87
Democratic?
When everyone in business has a say in decisions and have input
88
Laissez- Faire?
Managers have little authority over how employees get work done- roughly translates to 'leave alone'
89
Autocratic?
Dictatorship- told when and how to do things
90
What is a trade union?
When employees/ colleagues unite to work towards one goal for a better working environment
91
What does HRM stand for?
Human Resources Management
92
What is the recruitment process?
1. Vacant arises
2. Job analysis
3. Job description
4. Job specification
5. Job advertised in appropriate places
6. Application forms and short listing
7. Interviews and analysis
8. Vacancy Filled
93
What is internal recruitment?
Hiring/ promoting inside the company
94
What are the 3 training types?
1. On the Job
2. Off the Job
3. Induction
95
What is induction?
Training that occurs immediately after being hired
96
What is On the Job training
Trained at their place of employment
97
What is Off the Job training?
Time off is given to employee to travel externally to attend a course to improve a specific skill needed in their job
