unit one Flashcards
(22 cards)
diff types of business activity
primary- extraction of raw materials
secondary-manufacturing of products
tertiary-providing a service
diff sectors of operation
private-owned by individuals
public-owned by gov
third- non profit/ charities
types of ownership
sole trader
partnership
plc
ltd
franchise
aims and objectives
-survival
-financial
-growth
-reputation
-being enterprising
departments
-financial
-marketing
-sales
-hr
-operations
-customer service
-business support
-research and development
-purchasing
diff organisational structures
-flat
-tall/hierarchical
-matrix
-centralised
-decentralised
how elements of organisational structures impacts business
-delegation
-empowerment
-communication paths
-authority
-accountability/responsibilty
elements of organisational structures
-division of work
-span of control
-chain of command
organisational charts show:
-status of diff job levels
-elements
cost def
what the company spends
fixed/variable
revenue def
total income before costs are taken off
cash flow def
the flow of money coming in and out of the business
net cash flow def
the diff between cash inflow and cash outflow
profit def
revenue - costs
break-even
fixed costs/price -variable costs
margin of safety def
diff between sales and break even point
internal stakeholders
-staff
-owners
external stakeholders
-customers
-suppliers
-local community
STEEPLE
social factors
technological factors
environmental
economic
political
legal
ethical
SWOT
strengths
weaknesses
opportunities
threats