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Flashcards in SAC1A Deck (31):
1

define business

Lawful commercial activities to earn profit. A business, also known as an enterprise, agency or a firm, is an entity involved in the provision of goods and/or services to consumers

Provide a good or service to consumers in the pursuit of profit.

2

How many owners of a sole trader

1

3

advantages of being a sole trader

-all profits go towards you
- no conflict between partners/has all power
- most simple business structure
- low cost to set up

4

Disadvantages of sole trader

-Unlimited liability
- at financial risk if things go wrong
- could lose personal assests if things go wrong

5

Liability

The state of being legally responsible for something

6

number of owners in a partnership

2-20

7

Advantages of partnership

- inexpensive to set up
- shared workload

8

Disadvantages of a partnership

-unlimited liability
-possible conflict between owners

9

How many owners in a private limited company

50 max

10

Advantages of a private limited company

- limited liability
- seperate legal entity

11

Disadvantages of a private limited company

-more expensive and complex to start up
- more legal requirements

12

number of owners of a public listed company

Unlimited shareholders

13

Advantages of a public listed company

Limited liability
Good opportunity to raise large amounts of money to put into growing the business

14

Disadvantages of public listed company

Expensive to set up
Loss of control

15

Advantages of social enterprise

-positive impact on community
- people are willing to purchase as they want to help the world

16

Disadvantages of a social enterprise

-don’t get to keep the whole profit
- people are concerned that they are not up to standard

17

Five types of business objectives

Make a profit, increase market share, fulfil market need , fulfil social need, meet shareholder expectations

18

market share

The Percentage of that total industry’s sales that the business in question receives

19

Corporate social responsibility

the commitment for a business to behave in an ethics manner and to take responsibility for social, economical and environmental consequences of their activities. CSR may involve giving back to the community , for example , Coles supermarket donate sports equipment to loca primary schools.

20

Owners interest

Profits, growth of business

21

Employees interest

Job security, job satisfaction, satisfactory level of payments for their efforts

22

Managers interest

growth of business

23

Customers interest

Value for money, quality products

24

Government interest

Successful businesses, more taxes, everyone follows laws

25

Suppliers interests

Want to see he business increasing sales so they can sell more to them

26

Competitors

More market share, healthy completion

27

Operations management

Production , inputs to outputs

28

Finance

Receiving and spending money,where money goes, wages also called administration cash control

29

Human Resources

Acquiring to terminating, introduction , training , keeping everyone happy ,employer /employee relationships.

30

Tech support

Installing and maintaining technology, assists employees with technology, online stores

31

Sales and marketing

7ps, promotes business and sells to customers, makes people aware of business, helps achieve business objectives