p2 pt2 Flashcards
(56 cards)
1
Q
Sole Trader Advantages
A
- Easy to set up
- Full control and profits
2
Q
Sole Trader Disadvantages
A
- Unlimited liability
- Hard to raise capital
3
Q
Partnership Advantages
A
- Shared responsibility
- More capital
4
Q
Partnership Disadvantages
A
- Unlimited liability
- Possible conflict
5
Q
Private Limited Company (Ltd) Advantages
A
- Limited liability
- Easier to raise capital
6
Q
Private Limited Company (Ltd) Disadvantages
A
- Shares not sold to public
- More legal requirements
7
Q
Public Limited Company (Plc) Advantages
A
- Raise large capital
- Limited liability
8
Q
Public Limited Company (Plc) Disadvantages
A
- Complex and expensive
- Risk of takeover
9
Q
Franchise (Franchisee) Advantages
A
- Existing brand
- Training/support
10
Q
Franchise (Franchisee) Disadvantages
A
- Less independence
- Pay royalties
11
Q
Job Production Advantages
A
- Customised products
- High quality
12
Q
Job Production Disadvantages
A
- Expensive
- Slow production
13
Q
Batch Production Advantages
A
- Economies of scale
- Some variety
14
Q
Batch Production Disadvantages
A
- Delay if batch changes
- Storage needed
15
Q
Flow Production Advantages
A
- Low cost per unit
- Mass production
16
Q
Flow Production Disadvantages
A
- High setup cost
- Less flexibility
17
Q
Lean Production Advantages
A
- Reduces waste
- Lowers costs
18
Q
Lean Production Disadvantages
A
- Needs trained workers
- Risk of stock shortage
19
Q
Just-in-Time (JIT) Advantages
A
- Low stock cost
- Less space needed
20
Q
Just-in-Time (JIT) Disadvantages
A
- Delays if supply fails
- No buffer stock
21
Q
Quality Control Advantages
A
- Prevents faulty products reaching customer
22
Q
Quality Control Disadvantages
A
- Waste from defects
- Doesn’t improve process
23
Q
Quality Assurance Advantages
A
- Everyone involved
- Fewer errors long term
24
Q
Quality Assurance Disadvantages
A
- Expensive training
- Slower implementation
25
Internal Finance Advantages
- No repayment
- Control retained
26
Internal Finance Disadvantages
- Limited amount
- Opportunity cost
27
External Finance – Bank Loan Advantages
- Large amount available
- Set repayment plan
28
External Finance – Bank Loan Disadvantages
- Must be repaid with interest
- Security may be needed
29
External Finance – Overdraft Advantages
- Flexible
- Quick access
30
External Finance – Overdraft Disadvantages
- High interest
- Short term only
31
Market Segmentation Advantages
- Target customers better
- Efficient marketing
32
Market Segmentation Disadvantages
- Can ignore wider market
- Costly to research
33
Primary Research Advantages
- Specific to business
- Up to date
34
Primary Research Disadvantages
- Expensive
- Time consuming
35
Secondary Research Advantages
- Cheap
- Easy to find
36
Secondary Research Disadvantages
- May be outdated
- Not always relevant
37
Motivation – Maslow Advantages
- Highlights different needs
- Useful for managers
38
Motivation – Maslow Disadvantages
- Not always realistic
- Hard to apply to all
39
Motivation – Herzberg Advantages
- Explains job satisfaction
- Focus on job design
40
Motivation – Herzberg Disadvantages
- May not apply everywhere
- Hard to measure motivators
41
On-the-job Training Advantages
- Cheaper
- Job-specific
42
On-the-job Training Disadvantages
- Trainer may not be effective
- Mistakes on job
43
Off-the-job Training Advantages
- Specialists involved
- No distractions
44
Off-the-job Training Disadvantages
- Expensive
- Not job-specific
45
Promotion (Advertising) Advantages
- Reaches wide audience
- Increases awareness
46
Promotion (Advertising) Disadvantages
- Expensive
- Hard to measure impact
47
Sales Promotion Advantages
- Boosts short-term sales
- Encourages trial
48
Sales Promotion Disadvantages
- May reduce brand image
- Not sustainable
49
E-commerce Advantages
- Wider reach
- Lower costs
50
E-commerce Disadvantages
- Needs tech investment
- No physical contact
51
Cash Flow Forecasting Advantages
- Helps plan
- Predicts shortages
52
Cash Flow Forecasting Disadvantages
- Not always accurate
- Needs updating
53
Break-even Analysis Advantages
- Helps decision making
- Easy to understand
54
Break-even Analysis Disadvantages
- Assumes all output sold
- Ignores changing costs
55
Public Sector Business Advantages
- Provides essential services
- Not profit-focused
56
Public Sector Business Disadvantages
- May be inefficient
- Funded by taxpayers
