Understanding Buisness Flashcards
(29 cards)
What is a sole trader
A sole trader is a business owned and controlled by one individual
What is a partnership
A business owned and controlled between 2-20 people
What is a private limited companie
It is where a business owned by share holders and controlled by a board of directors
What are 2 advantages of a sole trader
All profits kept by owner
Owner has complete control
Owner can choose their own working hours / holidays
More of a personal service offered to consumers
Very easy to set up
What are the disadvantages of being a sole trader
Unlimited liability
Fiance is restricted
Owner has no one to share problems and workload with
Work may stop if your sick / if not it is difficult someone to trust in there absence
What is an example of an sole trader
Hairdressers
Plumbers
Corner shops
What is the advantages of a partnership
Partnership can bring in different areas of expertise
More finance is available
Workload can be shared
Easier to raise finance form tenders
What is examples of disadvantages in a partnership
Partners have unlimited liability
Profits have to be shared between partners
Partners may disagree
If one partner leaves or dies a new partnership agreement has to be set up
What is the factors of production
Land
Labour
Capital
Enterprise
Describe two of the factors of production
land - in/under e.g. oil fish land
labour - workers
capital - man made machinery
enterprise - idea
Give an example for each factor of production
land - wheat
labour - teacher , doctor
capital - tractor , scissors
enterprise - Nike (brand) , advert
What is a durable good and give an example
A durable good is something that lasts a long time e.g. Bed
What is a non durable good and give an example
A non durable good is something that dosent last long and you need to buy often e.g. Bread
what is the difference between tangible and non tangible
tangible - see/touch
non tangible - can’t see
what are the sectors of industry and give an example for each
Primary - farming , mining , fishing
secondary - manufacturing , man made good , Starbucks
Tertiary - services e.g. banking
what are the sectors of the economy
private
public
third
give an example for each sector of the economy
private - If an organisation has a profit motive e.g. Ben and Jerries
public - Organisations that are funded by the public e.g. NHS or police
third - organisation’s that are not for profit e.g. Marys Meals
what are the external factors
Political
Economic
Socio-cultural
Technology
Environmental
Competitive
What is the role of buisness in society
It involves taking resources and using them to produce goods and services that people consume / use in order to satisfy their needs and wants
Describe the external factors
Political - any action taken by the government e.g. laws
Economic - current state of the economy
Socio-Cultural - cultural trends e.g. buying habits of customers
Technology - latest developments
Environmental - actions and laws that promote up keep of environmental
Competitive - actions of competitors that force a firm to react
What is internal factors
Everything that goes on inside the buisness
What are the internal factors
Financial
Human Resources
Current Technology
Describe the internal factors
Financial - money in the bank / debts / cash flow
Human Resources- workers./ employees - trained / managers - capable / risk assessments
Current Technology - the effective use of technology
What is the interest of a stakeholder
intrest is what the stakeholder wants from the business
