KT10: 1.5.3 Business objectives, 1.5.4 Forms of business Flashcards Preview

Business Edexcel AS > KT10: 1.5.3 Business objectives, 1.5.4 Forms of business > Flashcards

Flashcards in KT10: 1.5.3 Business objectives, 1.5.4 Forms of business Deck (18)
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1
Q

Budgets

A

an agreed ceiling on the monthly spending by any department or manager

2
Q

Corporate objectives

A

targets for the whole business, such as profits to rise by 20% a year for the next three years

3
Q

Delegation

A

passing authority down the hierarchy, to allow more junior employees some decision-making power

4
Q

Entrepreneur

A

someone who makes a business idea happen, either through their own effort or by organising others to do the work

5
Q

Mission

A

a business aim expressed to make it seem especially powerful or motivating

6
Q

Mission statement

A

a short, powerfully expressed sentence or two that explains the business aims clearly yet motivationally

7
Q

Objectives

A

targets precise enough to allow praise or blame to the person in charge

8
Q

Shareholder value

A

the mix of shareholder dividends and a rising share price that stem from high and rising profits

9
Q

Staff retention

A

literally retaining (keeping) staff, usually measured as staff still remaining at the end of the year as a percentage of the total workforce

10
Q

Strategy

A

a medium-to-long term plan for meeting your objectives

11
Q

Bankrupt

A

when an individual is unable to meet personal liabilities, some or all of which can be as a consequence of business activities

12
Q

Creditiors

A

those owed money by a business- for example suppliers and bankers

13
Q

Franchisee

A

an independent business that has brought the rights to use a better-known firm’s logos and trading practices within a specified area

14
Q

incorporation

A

establishing a business as a separate legal entity from its owners, and therefore giving its owners limited liability

15
Q

Limited liability

A

owners are not liable for the debts of the business; they can lose no more than the sum they invested

16
Q

Registrar of Companies

A

the government department which can allow firms to become incorporated. It is located at companies house, where Articles of Association, Memorandums of Association and the annual accounts of limited companies are available for public scrutiny

17
Q

Sole-trader

A

a one-person business with unlimited liability

18
Q

Unlimited liability

A

owners are liable for any debts incurred by the business, even if this requires them to sell all their assets and possessions and become personally bankrupt