S3 BUSINESS Flashcards
(21 cards)
Describe the sectors of the economy?
Private sector- set up and owned by private individuals. Their main objective is to maximise profits. Financed by owners savings and loans.
Public sector- set up and owned by the government. Their main objective is to provide a quality service. Financed through taxations.
Third sector- set up by individuals in order to benefit a specific group. Their main objective is to provide a service that both the private and public sectors do not. Financed through grants and donations.
Describe features of a sole trader?
A sole trader is 1 singlar person who owns and controlls a business. They are financed through the owner’s savings and loans. They also have unlimited liability.
what does unlimited liability mean?
Unlimited liability means if their business was to not succeed their personal assets would be at risk.
Sole trader advantages and disadvantages?
One advantage of being a sole trader is that you get to keep all of the profits made. Another advantage of being a sole trader is that you are incharge of the business and get to make all the important business decisions. One disadvantage of being a sole trader is that you have unlimited liability. Another disadvantage of being a sole trader is that you could have a busy workload.
Describe features of a Private Limited Company?
One feature of a private limited company is that the money required to set up the business is divided into shares. Another feature is that the company is ran by a board of directors appointed by the shareholders.
Private Limited Company advantages and disadvantages?
One advantage of a private limited company is that shareholders have limited liability, meaning if the business fails, they only lose the amount of money they had invested and no more. Another advantage of a private limited company is that funds can be gathered more easily by simply selling more shares. One disadvantage of a private limited company is that if the organisation grows too big it can be difficult to manage properly. Another disadvantage of a private limited company is that the more shares that are sold the less control over the business
Features of charities?
The main objective of charities is to raise awareness for their cause and to meet the needs of the people who they are supporting.
How are charities finance?
Charities are financed donations, grants, and fundraising activities.
What is a social enterprise?
A business which aims to change the world for the better.
What is /different types of stakeholder?
A stakeholder is any individual, group or organisation with an interest in the business and can influence its success
Internal stakeholders- managers, employees and owners/shareholders
External stakeholders- suppliers, customers and the government
Identify sources of finance?
Bank loan, mortgage, hire purchase, trade credit, leasing, overdraft, and shareholder investment
Features of good customer service?
Having well trained easy to identify staff
Having clean, bright and welcoming premises
Dealing with customers quickly
Benefits of good customer service?
Increased profits
More likely to shop again
Fewer complaints
Happy, motivated staff
Methods of surveying customer satisfaction?
Postal survey- questionnaires are sent via mail and returned when completed, this is useful as it can target specific market segment, however, they are often binned as junk mail.
Telephone survey- individuals are telephoned at their homes and asked specific questions, this is useful as feedback can be received immediately, however, consumers may find it inconvenient.
Hall test- this is when a product is given to the customers to try and feedback is obtained, an advantage of this is that you receive quality feedback used to improve your product, a disadvantage of this is that it can be difficult to set up.
Market segmentation
age
gender
income
religion
Marketing mix
Product- item being sold
Price- amount of money paid by consumers for 1 unit
Place- how and where the product is maid available for purchase
Promotion- raising awareness of the producs existence and persuading people to buy it
Product life cycle
introduction
growth
maturity
decline
Benefits of branding?
Higher prices can be charged as the product quality is perceived a higher
Product stands apart from competitors making it instantly recognisable to the customers
Packaging advantages and disadvantages?
Advantages- extended shelf life, product protection
Disadvantage- environmental concerns, extended costs
Methods of promotion?
Buy-one-get-one-free
Free samples
Celebrity endorsement
Desk research advantages and disadvantages?
Advantages- no costs, available with the click of a button
Disadvantages- available to competitors, may be out of date
