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Flashcards in Key Term2 Deck (39):
1

What is a business

Something that provides goods and services that come could earn a profit

2

What is a stakeholder

Anyone interested or anyone who can be influenced by a business

3

What is a good

Tangible products

4

What is a service

Intangible things that a business provide

5

What is a producer product

A product sold by one business to another

6

What is a consumer product

Products sold to ordinary people

7

What is a need

A basic requirement for human survival

8

What is a want

People desires for goods and services

9

What is a revenue

The money a business receives

10

What is a sole trader

And individual who runs the business itself, gains all the profit and has responsibility of the business loses

11

What is a partnership

Partners who share responsibilities and profits of the business

12

What is unlimited liability

If the company declares bunk Rut with debts to pay, the owner must still pay the debts with their savings

13

What is unincorporated

The company and the person are legally the same person

14

What is a manager

Someone that helps to run a business

15

What is survival objective

When a business focuses on keeping going for at least one year

16

What is increase market share objective

When a business wants to increase the percentage of sales

17

What is the growth and wealth creation objective

Increasing the size of the business

18

What is image, reputation and responsibility objective

Ensuring that the business has good reputation with costumers, employees and local community

19

What is the financial security objective

Make sure that the business has access to money at all times

20

What does SMART stands for

Specific
Measurable
Achievable
Realistic
Time specific

21

What is deed of partnership

Document that should be signed when a partnership is started

22

What is a public corporation

An organization run by the government but is an incorporated business

23

What is franchisor

The owner of the brand

24

What a franchisee

The person who whats to open a new branch of franchise chain

25

What is a franchise

A license given to one business to a franchisee to sell their goods and services using its name

26

Example change market condition

Economy my start to decline

27

Example change in technology

Phones now have cameras

28

Example change of performance objective

Decide wether they survive or try profit maximization

29

Example change in legislation

Law change

30

3 adventages of public corporations

Offers good quality and low prices
Does not abuse its market power
Can be used to encourage spending on a country

31

2 disadvantages of a public corporation

Slow decision making
Difficult control and management

32

Why objective are important for the company

Employees are motivated as they could get bonuses

It’s easier to asses the performance of a business as if objectives are achieved it could be argued that business has performed well

33

What are the non financial objectives

Social objectives ( environmental and charitable )
Personal satisfaction
Challenge (taking a risk)

34

Adventage of a franchisee

Back up support is given

Set up cost are predictable

35

Disadvantage of a franchisee

Profit is shared with the franchisor

Lack of independence - strict rules

36

Adventages to franchisor

Fast method Of growth

Cheap method of growth

37

Disadvantage of franchisor

Profit is shared with the franchise

Some franchise may damage the brands reputation

38

Why does privatization take place

To generate income

To reduce polítical interference

39

What is consumer protection

Laws that avoid firms to exploit costumers by anti competitive practices