EOY\ Flashcards
(16 cards)
Entrepreneur
a person who organises operates and takes risks for a new business in hope for profit in return
Partnership
Agreement between two or more people to run a business together and share profits
Public limited company (2 features)
Owned by shareholders, shares can be sold to the public
Pros:
Limited liability
Shares can be sold to public
Quick growth and expansion
Continuity
Cons:
Complicated legal documents (time + money)
Can grow large too quickly difficult to control
May lose control of business
AGM - shareholders vote for next directors
Trade union
group of workers joined together to ensure their interests are protected
Hierarchy levels
Hierarchy levels show who has power, who makes decisions, and who reports to whom in an organisation.
why do people do External recruitment (2 advantages)
Hiring someone who is not an existing employee
New Ideas and Perspectives: Hiring externally brings in fresh talent with new skills, experiences, and viewpoints that can help improve innovation and problem-solving within the organization.
Wider Talent Pool: It gives access to a larger and more diverse group of candidates, increasing the chances of finding the best person for the job.
Why an established business is less like to fail compared to new business (4 features)
An established business is less likely to fail than a new one because:
Customer Loyalty – It already has regular customers and a good reputation.
Experience – The business knows how to handle challenges and make smart decisions.
Stronger Cash Flow – It usually has more stable income and better access to finance.
Established Systems – It has tested processes and trained staff in place.
Maslow Hierarchy
Physiological Needs – Basic needs like food, water, rest, salary.
Safety Needs – Job security, safe working conditions.
Social Needs – Feeling part of a team, friendships at work.
Esteem Needs – Respect, recognition, promotions.
Self-Actualisation – Reaching full potential, creative work, personal growth
Each level must be achieved before the next level
Advantages of delegation (2 features)
Saves time for managers – They can focus on more important tasks.
Develops employee skills – Helps staff gain experience and confidence.
Study Motivation
Financial rewards:
Time rate wage - payment per hour
(Good and bad workers get paid the same)
Piece rate wage- payment on output
(may rush and produce bad quality products, workers that make slow and high quality products will get paid less)
Salaries - paid monthly
only need to calculate it once a month which uses less time
Additional payments (top of salary)
Commission - sales staff paid a small percentage of the product they sell
Profit sharing - employees receive share of company’s profit: they will be more motivated
Bonus - money paid to workers when they work well (end of year)
Share ownership - employees given some of company’s shares
Non financial:
Health care, cars, free meals, children’s education, discount on products
Improve Job Satisfaction:
Job rotation - workers swap roles to do different tasks
Job enlargement - extra tasks given to worker for variety of things to do
Job enrichment - tasks that require skill + responsibility
what’s the secondary sector
manufactures goods using the raw materials provided by primary sector
added value
Definition - difference between the selling price and the cost of materials
Ways to increase it:
Reducing cost of production (products may be poor quality)
Raising prices (customer loss may occur)
Branding
Special features
Provide premium services
what’s redundant
Redundant means that a worker’s job is no longer needed, often due to changes like new technology, cost-cutting, or company restructuring.
Example:
If a company automates a task, the employee doing that task may be made redundant.
Key Points:
It’s not the employee’s fault.
It usually leads to job loss.
whats delegation
Delegation is when a manager gives a task to someone else but still stays responsible for it. It helps save time and develop employee skills
why motivated employees are good for business
Motivated employees are good for business because:
Higher Productivity – They work harder and get more done.
Better Quality Work – They care more about doing a good job.
Lower Staff Turnover – They’re less likely to quit, saving hiring costs.
Improved Customer Service – Happy employees treat customers better.
advantages of redundant
Cost Savings – Reducing staff can lower wage expenses, especially if the role is no longer needed.
Improved Efficiency – It helps remove duplicate roles or adapt to new technology, making the business run more smoothly.
