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Business > UB part one > Flashcards

UB part one Flashcards

(46 cards)

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1
Q

Need

A

What we require in order to survive

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2
Q

Want

A

Goods or services hat make our lives more enjoyable and pleasing, but we don’t require them in order to survive.

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3
Q

Good

A

A physical product that we can see and touch

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4
Q

Services

A

Something that is provided for us

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5
Q

Consumption

A

The using up of a good or service

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6
Q

Durable

A

It can be used more than once

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7
Q

Non durable

A

It is single use

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8
Q

Tangible

A

Something that we can see and touch

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9
Q

Non tangible

A

Something that we can’t see or touch

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10
Q

Four factors of production

A

Land
Labour
Capital
Enterprise

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11
Q

Land (fop)

A

This refers to natural resources found not only on the earth’s surface but all other natural resources discovered within it. This can be oil, fish and coal

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12
Q

Labour (fop)

A

This refers to human resources. This is the employees who work for the business

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13
Q

Capital (fop)

A

This refers to human made resources. This includes machinery, buildings and the equipment used in the production [process

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14
Q

Enterprise (fop)

A

This is the art of brining together the other factors of production in order to produce a good or service. The entrepreneur is the risk taker.

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15
Q

Three sectors of industry

A

Primary
Secondary
Tertiary

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16
Q

Chain of production

A

This is the stages a product passes through from start to finish. At each stage value is added and wealth is created

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17
Q

Primary (soi)

A

Businesses involved in the extraction of natural resources from above and below the earths surface. This can be fishing and farming

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18
Q

Secondary (soi)

A

Businesses involved with taking raw materials from the primary sector and manufacturing them into a product. This be car manufacturing and cake making

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19
Q

Tertiary (soi)

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A

Businesses involved with providing a service. This is services including hotels, supermarkets and travel agents

20
Q

Three sectors of economy

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A

Private
Public
Third

21
Q

What is the private sector

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A

These are organisations owned by private individuals that exist to make a profit

22
Q

Aims of private sectors

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A

Profit maximisation
Achieving quality
Survival
Customer satisfaction
Socially responsible

22
Q

What is a sole trader

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A

This is a business owned and run by one person
Owned by one private individual
Controlled by the private individual
Financed by their own savings or possibly a bank loan

23
Q

What is a partnership

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A

This is a business owned and run by 2-20 partners
Owned by 2-20 partners
Controlled by 2-20 partners
Financed by the investment of each partner or they may apple for bank loans

A deed of partnership should be drawn up to outline formal relationships of partners and how profits are divided

23
Two advantages and two disadvantages of a sole trader
Advantages -Easy to set up as there are no legal documents to complete -Owner gets to keep all of the profits Disadvantages -Unlimited liability - if the business goes into debt then the individual is responsible for paying it back. This could mean their personal possessions are taken to pay for this -Raising finance can be difficult as banks look at sole traders as high risk
24
Two advantages and two disadvantages of a partnership
Advantages -Workload and responsibilities can be shared between partners -Partners each bring different experience and expertise Disadvantages -Unlimited liability - if the business goes into debt then the individual is responsible for paying it back. This could mean their personal possessions are taken to pay for this -The actions of one partner is legally binding on the other
25
What is a private limited company (Ltd)
This is a business owned by 1-50 private shareholders. They must be registered with the Registrar of Companies at companies house Owned by private shareholders as shares are not sold on stock market Controlled by a board of directors Financed by share equity invested by shareholders
26
Two advantages and two disadvantages of an Ltd
Advantages -Limited liability - if the business goes into debt the shareholders are not responsible for paying it back. They can only lose what they have invested -More finance can be raised compared to sole traders and partnerships Disadvantages -Financial accounts must be published online which the public and competitors can see -Profits shared between many shareholders by paying dividends
27
What is the public sector
Services and agencies run by the government in our behalf OWNED by the government on our behalf CONTROLLED by government departments at UK, Scottish and local levels FINANCED by taxes paid by individuals and organisations
28
Four parts of the public sector
UK government Scottish parliament Local government Public corporations
29
UK government features
- Run UK wide services and agencies such as defence and immigration - Make laws for all of the UK to follow - Collect some taxes such as VAT and corporation tax
30
Scottish parliament features
- Use devolved powers to run services and agencies such as NHS, police, transport, housing and agriculture - Collect some taxes like Income tax
31
Local government features
- Run local services such as schools, parking and road repairs - Run local activities such as leisure centres, swimming pools and golf course - Collect some taxes such as council tax and business rates
32
Public corporations
Business organisations owned by the government on our behalf The BBC is only the public corporation left - it raises funds through the TV licence and has a charter to ensure certain public aims are met
33
Aims of the public sector
- Make the best use of funds - Quality of service - Raise revenue - Cut costs - Improve infrastructure
34
The third sector
Non profit making organisations that exist to support an aim or a cause
35
Charities
Charities have NO RECOGNISED OWNER CONTROLLED by a board of trustees who represent the charity FINANCED by donations, fundraising, grants from government and shakes from charity shops A charity will mostly be run by volunteers by may also have paid employees
36
Charity advantages and disadvantages
ADVANTAGES - Exempt from paying certain taxes - Low wage costs due to mostly volunteers DISADVANTAGES - High turnover of volunteers who may leave for paid work - Difficult to compete for donations against thousands of other charities
37
Clubs and associations
Clubs and associations have NO RECOGNISED OWNERS CONTROLLED by an elected committee FINANCED by membership fees or subscriptions paid by members Clubs are usually run locally by volunteers
38
Aims of the third sector
- Increase funds - Provision of service - Increase awareness - Pressure government - More branches
39
Social enterprise
Organisation that trade and earn income from business by use the profits to help their cause
40
Social enterprise key features
OWNERSHIP is structured similar to the private sector CONTROLLED by sole trader / partners / board of directors FINANCED by grants, private investment and donations Have social aims which seek to improve society in some way
41
Social enterprise advantages and disadvantages
ADVANTAGES - Social aims attract customers to but products or use services - More likely to receive grants from the government due to their positive impact on society - Easier to attract high quality employees who want to support the aim DISADVANTAGES - Due to heavy reliance on grants levels of funding can be unpredictable - Difficult to compete against profit driven private sector businesses
42
How do organisations ensure customer satisfaction
- Provide the highest possible quality product - Train employees to the highest standard - Recruit candidates with customer services experience/ skills - Having a customer care policy ( a doc putting the terms of service that will be offered ) - Having a costumer complaints procedure - Having an FAQ section on you website - Offering an after sales service (warranty)
43
How do organisations know if customers are satisfied
- Customers filling in surveys - Reading comments left by customers - Engaging with social media - If customer numbers are increasing or decreasing - Focus groups
44
What are the benefits of satisfying customers
- Increased sales for the organisation - Customers will return to the business - New customers will be attracted - Improves the reputation of the organisation - Higher prices can be charged as customers know they’ll get good service - Reduction in customer complaints - Organisations may win awards

Business (3 decks)

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