theme 1 Flashcards
what does profit maximization mean?
making as much profit and money as possible so they can expand, grow, replace machinery or equipment
what is the difference between skills and characteristics?
skills are something you can learn and characteristics are your personality
how do you calculate revenue?
quantity x price
how do you calculate total profits?
total revenue - total costs
what is a sole trader?
when one person owns and controls the business
what document does a partnership need?
a deed of partnership
what is a PLC?
public limited company
what is a LTD?
private limited company
what are aims?
what a business tries to achieve in the long run
what are objectives?
the goals or targets set by a business to achieve its overall long term aim
what are some financial objectives?
survival, profit maximization, sales maximization, market share and cost efficiency
what are some non-financial objectives?
employee welfare, customer satisfaction and social objectives
what are social objectives?
how the business benefits society
what is a limited partnership?
where members contribute capital and enjoy a share of the profit, but do not participate in the running of the business.
what does the memorandum of association mean?
a document that sets out the constitution and states the key external finance about a limited company
