SAC 1A Flashcards
(27 cards)
sole trader
a business that is owned by one person.
partnerships
a business that is owned by between 2 and 20 people.
private limited company
an incorporated business that is owned by up to 50 private shareholders.
public listed company
a business that is owned by shareholders where the shares of a business can be purchased or sold on an open market.
social enterprise
a business that exists primarily to fulfil a vision that benefits the community or social need rather than shareholders.
government business enterprise
a business that is owned and operated by the government.
business objectives
make a profit increase market share fulfil a market need fulfil a social need meet shareholder expectations
market share
the percentage of total sales in a market in comparison to competitors in the market.
market need
meeting customer expectations.
social need
selling goods or services to make the world a better place.
shareholder
shareholders are those that own part of the company.
shareholder expectations
shareholders expect return on their investment.
stakeholders
someone with a vested interest in the business.
areas of management responsibility
operations finance Human Resources sales and marketing technology support
operations
area of the business that produces goods and services.
turns inputs into outputs (e.g materials getting manufactured into clothing to sell).
the manager needs to oversee this to ensure goods and services are produced efficiently and have the desired quality.
finance
responsible for managing the money and budgets of the business.
keeping track of finances allows the manager to make informed decisions.
human resources
manages the relationship between employees and the business.
manager needs to bring in the right people to their business and ensure their skills are developed and motivated.
sales and marketing
responsible for promoting the business and its products and to sell them to potential customers.
marketing team is responsible for product development, pricing strategies, promotion and product distribution.
technology support
responsible for implementing and maintaining the technologies within a business.
technology is important for communication, data storage and processing and operations
incorporated
refers to turning a sole trader or partnership into a company formally recognised as its own legal business structure set apart from the individuals who founded the business.
sole trader: advantages and disadvantages
advantages:
simple to set up and operate.
disadvantages:
unlimited liability
partnership: advantages and disadvantages
advantages:
workload can be shared amongst partners
disadvantages:
potential for disagreements over key decisions.
public listed company: advantages and disadvantages
advantages:
is a separate legal entity.
limited liability
disadvantages:
the money the business makes belongs to the company.
private limited company: advantages and disadvantages
advantages:
separate legal entity.
limited liability.
disadvantages:
more complex business structure to start and run.
