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A-Level Business > unit 1 > Flashcards

unit 1 Flashcards

1
Q

what is a startup

A

a start up is a new business enterprise formed by one or more entrepreneurs.

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2
Q

definition of a business

A

a business is an organisation that exists to provide goods an services on a commercial basis to customers

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3
Q

profit

A

The difference between total sales and total costs

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4
Q

revenue

A

The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.

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5
Q

incorporated

A

legal difference between the business and the owners

owners have limited liability

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6
Q

unincorporated

A

the business is the owner

owners have unlimited liability

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7
Q

whats the transformation process

A

inputs->transformation process->outputs

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8
Q

what a private limited company

A

A business that is owned by its shareholders, run by directors and where the liability of shareholders for the debts of the company is limited.

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9
Q

whats a sole trader

A

A sole trader is a business that is owned and run by one person.

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10
Q

whats a public limited company

A

a company that has offered shares of stock to the general public. The buyers of those shares have limited liability, meaning that they cannot be held responsible for any business losses in excess of the amount they paid for the shares.

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11
Q

what does CELL stand for

A

capital
enterprise
land
labour

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12
Q

whats a USP

A

unique selling point

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13
Q

primary sectors

A

Any business that grows goods or extracts materials from the land (mining, farming, energy extraction)

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14
Q

secondary sectors

A

take the raw materials from the primary sector and turn them into finished goods. (manufacturing, food processing, component assembly)

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15
Q

tertiary sectors

A

providing services to consumers and businesses. (personal services, retailing, household franchise)

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16
Q

quaternary sectors

A

providing information and ICT. (software development, financial services, data processing)

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17
Q

what are SME’s

A

small, medium enterprises (under 250 employees)

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18
Q

off-shore

A

taking advantage of lower land and labor costs.

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19
Q

whats B2C

A

business to consumer

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20
Q

B2B

A

business to business

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21
Q

whats a mission

A

a qualitative statement of the businesses aims

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22
Q

whats a aim

A

A long term plan from which business objectives are derived

23
Q

what are business objectives

A

the specific intended outcomes of business strategy

24
Q

4 functions of a business

A

finance, operations, marketing and human resources

25
Q

how can objectives be used

A

implement the mission
provide a clear focus for decision making
provide a target
motivate employees
provide a sense of unity

26
Q

market capitalisation

A

the value of a business

27
Q

what is a share

A

part ownership of a business

28
Q

whats dividends

A

a share of the profit split between the share holders

29
Q

equation of market capitalisation

A

share price X number of shares

30
Q

what is equity finance

A

finance from shares

31
Q

whats CESSPIT

A

cash flow
ethical
social
survival
profit
increase turnover

32
Q

whats cash flow

A

the way that money moves in and out of a business and its bank accounts.

33
Q

what does ethical mean

A

is it morally right? eg children working in factories

34
Q

what does social mean

A

firms that aim to benefit groups within society (fair trade, not-for-profit organisation, social goals)

35
Q

whats CESSPIT used for

A

to help remember the goals for firms

36
Q

whats survival

A

having enough money to not have to shut down or brought out (60% of all companies shut down after 5 years)

37
Q

whats profit

A

the financial gain from an enterprise after all costs have been paid.

38
Q

whats increase turnover

A

also known as growth, growth may lead to increased profit and power

its a choice not every company wants to grow as they want to retain control, it will depend on their objectives.

39
Q

what are SMART objectives

A

specific
measurable
achievable
relevant
time bound

40
Q

what does SMART help with

A

helps management set effective objectives

41
Q

specific meaning

A

the objective should state exactly what is to be achieved

42
Q

measurable meaning

A

an object should be capable of measurement - so that it is possible to determine whether (or how far) it has been achieved

43
Q

achievable meaning

A

the objective should be realistic given the circumstances in which it is set and the resources available to the business

44
Q

relevant meaning

A

objectives should be relevant to the people responsible for achieving them

45
Q

time bound meaning

A

objectives should be set with a time frame in mind. these deadlines also need to be realistic.

46
Q

what are bank overdrafts

A

an overdraft is really a loan facility, the bank lets the business ‘owe it money’ when the bank balance gores below zero, in return for changing a high rate interest

47
Q

benefits of retained profits

A

cheap (though not free)

very flexible

do not dilute the ownership of the company

48
Q

what factors can influence business objectives

A

age of business
size and legal status
ownership
views of owners and managers
market conditions
legislation
state of the economy
competition
risk and attitude to risk
corporate culture
political factors
social attitudes

49
Q

what are strategic objections

A

focused on long term
set by the board

50
Q

what are tactual objections
set by the board
involve higher risk

A

focused on short term
set by line management
relating low risk

51
Q

PESTLE meaning

A

political factors
economic factors
social factors
technological factors
environmental factors
legal factors

52
Q

market conditions

A

features of a market such as:
- sales growth
- price levels
- the number and strength go rivals

53
Q

demand

A

the amount of a particular good or service that consumers or organisations want and are able to afford to purchase.

A-Level Business (15 decks)

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