Bussiness Studies Flashcards
(22 cards)
What are the goals of the Charity organization?
Non profit making organization and to help others by being involved in community work etc…
What are the three types of organizations?
Charities, Government / Public sector, Private sector.
What are the goals of the government / public sector?
To look after the welfare of society by providing needed economic goods and services (roads, schools, law and order etc…).
What are the goals of the private sector?
1) to make a profit
2) to survive
3) to grow/expand
4) to be well known
5) to provide a service or help society.
What are the types of businesses in the private sector?
Sole trader, Partnership, Companies, Multinational.
What is a sole trader business?
It is a business owned and controlled by one person.
What are two advantages and disadvantages of a sole trader?
Advantages: a sole trader is his own boss, this type of business is easy to setup.
Disadvantages: has full responsibility for the business, may lose revenue if off sick.
What is a partnership?
It is a legal agreement between 2 - 20 people to own, finance and run a business.
What are two advantages and disadvantages in a partnership?
Advantages: easy to setup, more partners means more capital.
Disadvantages: partners can disagree, partners share profits.
What is a company?
It is a business set up by a group of people with the aim of making a profit. It has to be registered and given a name.
What are the owners called in a company?
Shareholders.
What are dividends?
When a company makes profits, shareholders enjoy a share of the profits which is called dividends.
What are the two types of companies and explain them?
Private: has between 2-50 shareholders (usually run by a family).
Public: minimum of two shareholders with no maximum.
What is a multinational?
It has its headquarters in one country and sells its products in other countries.
What are the benefits of multinationals?
They male use of labour in other countries.
They make use of natural resources.
They have the opportunity to have a global market.
What are the disadvantages of multinationals?
Chemical multinationals often cause pollution.
They can often undercut local firms.
They take profits out of domestic economy and pay them to shareholders who live far away.
What are the positive impacts of business activities?
It involves the creation of goods and services that benefit people.
Consumers enjoy higher living standards.
Its creates jobs and incomes for workers.
They pay taxes to the government.
What are the negative impacts of business activity?
Water pollution eg: oil spills.
Air pollution eg: toxic waste from factories.
Destruction of the environment eg: deforestation for roads etc…
Global warming eg: burning fossil fuels.
Over fishing eg: depleting fish stocks.
Who is a stakeholder?
It is someone who has an interest in the decisions taken by a business.
What are the two types of stake holders?
Internal and external stake holders.
Who are the internal stakeholders and give examples?
Those who are owners or work in the business.
Owners: they expect to earn profits and they like to see their business growing.
Workers: they want job security, promotions and good working conditions.
Who are external stakeholders and give examples?
Customers Suppliers Government Local community Pressure groups
