p2 Flashcards
(23 cards)
What is a Sole Trader?
A business owned and operated by one person.
Advantages: Full control, Keeps all profit.
Disadvantages: Unlimited liability, Harder to raise capital.
What is a Partnership?
Business owned by 2–20 people sharing responsibility.
Advantages: Shared skills/capital, Shared decision-making.
Disadvantages: Unlimited liability, Conflict risk.
What is an Ltd (Private Limited Company)?
Business with limited liability, shares not sold publicly.
Advantages: Limited liability, Capital from investors.
Disadvantages: Harder to sell shares, Financial info disclosed.
What is a Plc (Public Limited Company)?
Business with shares traded publicly.
Advantages: Can raise large capital, Limited liability.
Disadvantages: Risk of takeover, Complex legal requirements.
What is a Franchise?
One business allows another to use its brand/model.
Advantages: Established brand, Training/support provided.
Disadvantages: Initial fees, Less freedom.
What is Market Research?
Process of collecting data about consumers/markets.
Advantages: Helps target market, Better product decisions.
Disadvantages: Can be expensive/time-consuming.
What is Job Production?
One product made at a time, fully customised.
Advantages: High quality, Meets specific needs.
Disadvantages: Expensive, Time-consuming.
What is Batch Production?
Products made in groups.
Advantages: Some variety, Lower cost per unit.
Disadvantages: Downtime between batches.
What is Flow Production?
Continuous production on assembly line.
Advantages: High output, Low unit cost.
Disadvantages: High setup cost, Less flexibility.
What is Just-in-Time (JIT)?
Stock arrives when needed, no buffer stock.
Advantages: Reduces storage cost.
Disadvantages: Risk of delays/disruptions.
What is a Cash Flow Forecast?
Predicts inflows and outflows over time.
Advantages: Helps prevent shortages.
Disadvantages: Only a prediction, May be inaccurate.
What is Retained Profit?
Profit kept in business for reinvestment.
Advantages: No repayment, No interest.
Disadvantages: May not be available, Shareholders may want dividends.
What is a Bank Loan?
Borrowed money to be repaid with interest.
Advantages: Quick access, Regular repayment terms.
Disadvantages: Interest, Collateral needed.
What is On-the-Job Training?
Learning at the workplace.
Advantages: Practical, Low cost.
Disadvantages: Can disrupt work, May be low quality.
What is Off-the-Job Training?
Learning away from the job.
Advantages: Experts involved, Focused learning.
Disadvantages: Expensive, No real-world practice.
What is Maslow’s Theory?
Motivation through hierarchy of needs.
Advantages: Structured model, Widely applicable.
Disadvantages: Hard to identify exact needs.
What is Herzberg’s Theory?
Motivation through hygiene and motivator factors.
Advantages: Explains dissatisfaction causes.
Disadvantages: May vary between workers.
What is Taylor’s Theory?
Workers motivated by money and supervision.
Advantages: Clear structure.
Disadvantages: Ignores social/psychological needs.
What is Promotion?
Communicating with customers to encourage buying.
Advantages: Increases sales, Raises awareness.
Disadvantages: Expensive, Short-term effect.
What is Price Skimming?
High initial price to recover costs.
Advantages: High profit margin.
Disadvantages: Attracts competition.
What is Penetration Pricing?
Low price to gain market share.
Advantages: Quick customer base.
Disadvantages: Low initial profit.
What is Market Segmentation?
Dividing market by demographics, location, etc.
Advantages: Targets specific needs.
Disadvantages: May miss wider market.
What is Break-Even Point?
When total revenue = total cost.
Advantages: Helps pricing/decision-making.
Disadvantages: Assumes constant costs/prices.
