Introduction to Business 1-4

Question 1

What is a constraint

Answer 1

Risky factor to business
Include - legislation, competitors, environment, economy

Question 2

Adding value

Answer 2

Price added on top of cost of production
Makes profit

Question 3

What is enterprise

Answer 3

A business
A potions of risk taker

Question 4

What is difference between self employed and entrepreneur

Answer 4

Self employed means you worked for someone before working for yourself

Question 5

Characteristics of entrepreneur

Answer 5

Creative
Confidence
Determined
Risk taker

Question 6

Factors of production (cell)

Answer 6

Capital - machinery
Enterprise- owner
Land- grow materials
Labour- employees used to plant materials
Factor price increase = reduce profit margin

Question 7

Human resource management

Answer 7

Training and recruiting
Motivate workforce
Wellbeing of employees

Question 8

Private sector

Answer 8

Sole trader - one owner , unlimited liability, all profit
Partnership- 2-20 owners, unlimited liability, share profit
Plc - limited liability, shares to family and friends, continuity
Ltd- limited liability, shares to anyone, continuity

Question 9

Public sectors

Answer 9

Money through taxation
Central gov- NHS
Local gov- recycling
Provide high quality service

Question 10

Third sector

Answer 10

Charities
Communities
Profit not main aim
Profit reinvested to improve service

Question 11

Structure of economy

Answer 11

If manufacturing is thriving positive effect on other sectors

Question 12

Business activity (stages of production)

Answer 12

Primary- raw materials
Secondary- machinery
Tertiary- retail/ service
Quaternary- knowledge base part of economy (info service)

Question 13

What is LLP

Answer 13

Limited liability partnerships

Question 14

What is deindustrialisation

Answer 14

Decline second sector of economy

Question 15

Chain of production

Answer 15

Stages a product passes to get to consumer

Question 16

Companies house

Answer 16

All companies registered

Question 17

Incorporated

Answer 17

Companies separate from owners

Question 18

Unincorporated

Answer 18

Business and owners have no legal difference

Question 19

Accounting and finance

Answer 19

Monitoring and controlling finance
Cashflow
Tax
Detail records

Question 20

Marketing and support

Answer 20

Adding value
Customer service
Advertising and promotion
Consumer info

Question 21

Accounting and finance

Answer 21

Monitor and control finance
Tax
Cashflow
Detailed records

Question 22

Operations management and production

Answer 22

Production making the product effectively
Operations- control process of production

Question 23

Franchise

Answer 23

Well known brand allows person to set up business using brand name

Question 26

Franchiser

Answer 26

Person who owns the business

Question 27

Franchisee

Answer 27

Person taking on the business to set up brand

Question 28

Adv of franchise

Answer 28

Produced under direct control Specialist advanced training Market research Easy to get loan

Question 29

Dis of franchise

Answer 29

Control issues Cost Bad reputation Possible conflict

Question 30

What is co operative

Answer 30

Owned by members All members vote who will manage business Help decision making Very diverse

Question 31

Adv of co operative

Answer 31

Easy to set up Limited liability High quality service Stakeholder approach

Question 32

Dis of co operative

Answer 32

Weak management Slow decision making Capital limited Employees want more

Question 33

Factors effecting size of a business

Answer 33

Market size Nature of product- if product large and technical Personal preference

Question 34

External growth

Answer 34

Want to expand due to- greater challenge, higher return, investment

Question 35

Effects of business size of stakeholders

Answer 35

Employees adv- job security dis- feeling stressed Suppliers adv- security dis- take it or leave it Local community adv- creation of jobs dis- reduce variety Shareholders adv- market power dis- profit Customers adv- lower prices dis- swayed to buy product

Question 36

Organic growth

Answer 36

Within a business Done by increasing sales

Question 37

Merger and acquisition

Answer 37

Merger- joins businesses to make a large firm Acquisition-