Understanding business past paper questions Flashcards
(31 cards)
Discuss advantages and disadvantages of being a private limited company
shareholders have limited liability.
easy to to raise finance as additional. shares cannot be sold to the public. profit is shared between shareholders.
Describe the influence of stakeholders on a private limited company
Shareholders through the level of investments they make. managers through the decisions they make for the business. Suppliers by increasing or decreasing their prices. Customers can chose to buy or not to buy from the business
Identify 2 internal factors that could affect the success of an organisation
finnace, technology, employees
Outline ways in which an organisation can ensure good customer service
having polite and helpful employees, having an after sales srvice, selling good quality products at the best price, having an after sales service
Define the term non durable good
Goods which last a limited amount of time
Describe 2 sectors of the economy
the public sectors aims to break even. the private sector aims to maximise profit. the private sector is owned by private individuals the public sector is owned by the governemnt
Compare the objectives of a sole trader with those of a charity
A sole trader aims to be socially responsible responsible. Whereas a charity also aims to be socially responsible. A sole trader aims to maximise profit. Whereas a chairty aims to increase donations
Outline the factors of production
land is the natural resources used by the business, labour is the human resources employed in a business, capital is the money or equipment used t start a business, enterprise is the entrepreneur who combines all the other factors together
outline the impact of poor customer service
There will be an increase in complaints, the organisations image may be damaged, customer satisfaction will decrease
Explain the effect of internal technological factors
An organisation may update their technology. This means there will be time spent on training all employees
Explain the effect of social influences
There can be changes in trends and fashion. This means the organisation may need to update their products.
Describe methods of ensuring good customer service
Having high quality products at the best price, having an after sales service, having polite and helpful employees
use high quality raw materials
Explain the impact of political influences
The government can increase the minimum wage. This means the organisation might lose profit
The government can decrease taxation levels. This means customers will have more disposable income which could increase sales
explain the advantages and disadvantages of forming a partnership
Partners can share the worload fo running a business. This means the output produced can increase.
partners can specialise in the business.
The is a chance fo arguments and disagreements. Therefore this can slow down decision making.
The business has unlimited liability. This means partners might lose personal posessions to repay business debts
Explain how economical factors can affect an organisation
The rate of interest can decrease. This means customers are more likely to borrow money to purchase products.
Unemployment kevels can be low. This means an organisation can raise their prices.
Explain how technological influences can affect an organisation
An organisation can introduce e-commerce. This means there will be an increase in sales around the world.
There can be an advancement in the technology used in the organsiation. This means the business will need to train all employees.
Explain how social influences can affect an organisation
There has been changes in trends and fashions. This means a business may have to update their products
Outline the objectives of an organisation in the third sector
Raise awareness of issues, be socially responsible, provide us with services
justify the importance of good customer service
will result in fewer complaints from customers, the organsiations image will improve, can lead to brand loyalty, can attract new customers
Explain how internal factors could affect the success of an organisation
Technology used by the business can break down. This means there can be delays in production.
The organisation has a lack of finance. This means they may not be able to pay back loans and bills on time
Having highly trained employees. This means they may be able to offer good customer service.
explain the ways internal factors can affect an organisation
Business may introduce new technology. this means all staff will have to be trained.
Employees can take industrial action. This means a busiensses productivity will be slowed down
The business may not ahve the finaince to raise wages. This emans staff may eb demotivated
outline the information contained in a busienss plan
the busienss name
the product or service offered
who the target market is
the numebr of employees required
explain the impact of stakeholders
employees cna carry out industrial action. therefore the amount being produced will be impacted
owner can make major decision whic can elad to mistakes. this means the business may lose profit
Explain the ways in which an organisation can ensure good customer service
having polite and helpful employees. this means compliants are less likely.
having an after sales service. This emans any issuel will be dealt with easier
