Bussiness In The Real World Flashcards
(13 cards)
What are the 4 factors of production
Land labour capital enterprise 
What is land (factors of production)
Earths natural resources,Rare 
What is labour factors of production? 
Work done by people who contribute 
What is capital factors of production?
Equipment factories schools 
What is enterprise?
Entrepreneurs who take risks and create things 
What are the four types of business ownership 
Partnerships
LTD
plc
sole trader 
What are advantages and disadvantages of partnerships
ADVANTAGES 
More new ideas
share work
more money to start the business
DISADVANTAGES
unlimited liability
Disagreements,
less profit 
What are advantages and disadvantages of being a sole trader?
Advantages
easy to start
own boss
decisions are quick
disadvantages
long hours
unlimited liability
hard to raise money 
What is advantages and disadvantages of LTD? 
 Advantages
limited liability
private
disadvantage
more expensive
have to publish accounts 
What are advantages and disadvantages of plc? 
Advantages
anyone can buy shares
more money
disadvantages
long decision
publishing accounts 
What is internal growth?
Low risk but slow
e-commerce
new stores
outsourcing
good quality
franchising 
What is 2 ways of eternal growth?
Merger- two businesses join to form new firm
takeover- one business buys more than half and takes over 
What is the equation for average unit costs
Total costs/number of units produced
