recap struggle Flashcards
(21 cards)
what are 5 reasons as to why profit is important ?
- good source of finance
- attracts new competitors
- pay for dividends
- invest back into business
what is 6 ways to maximise profit ?
- advertising to attract new consumers
- cheaper suppliers
- increase sales
- lower unit costs
- redundancy
- new product range to attract a wider target audience
what are the advantages of non profit organisations
- tax exemption
- engage in social change
- mission driven focus
what are the disadvantages of non for profit organisations
- dependent on volunteers and donations
- limited compliance
- regulatory to compliance issues
what is a social enterprise
a business where its main goal is promoting social and environmental welfare rather then maximising profits
what are the advantages of a social enterprise
- enhanced brand awareness and rep
- employees feel motivated
- impactful on a positive change
what are the disadvantages of a social enterprise
- still competing in commercial markets
- strict rules and regulations
- HR is small
what is right issues
when existing shareholders are given the opportunity to buy new shares the business owns
what is venture capitalists
a particular type of shareholders
- they invest in a business as they see it potentially having a chance of being successful
what is share capital
money raised by a company through the issuance of shares
- the shareholders interest
what is market capitalization
total value of business share’s
- the amount the business could be bought for
what are the 6 possible reasons as to why shareholders may invest within a business
- achieving capital gain
- want to see the business survive and grow
- potential a business succeeds
- believe in the aims/ objectives
- want to be involved in running the business
- payed dividends
what are 6 factors that influence demand and supply
- business performance
- interest rates
- economy
- rival performance
- share buybacks
- takeovers and mergers consensus
what are share buybacks
it is where the business repurchases its shares on the market
- buy back their own shares on the market place
what does share buybacks lead too
decrease in shares available so could leads too increase of price
how does share buybacks influence supply and demand of shares
- tax cuts so will increase investors
- demand and price increase as shares are bought back
what are the 6 external environment factors can affect costs and demand
- competition
- market conditions
- incomes
- interest rates
- demographic factors
- environ. issues and fair trade
what are the 4 factors affecting market conditions
- political factors
- labour supply
- incomes and economic factors
- season demand and supply
what are the demographic changes which affect the market
- ageing population… workers yet immigration levels rise
- consumer tastes… cosmetics
- ethnically diverse
- more working parents
