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Untitled Deck Flashcards

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1
Q

What is the primary purpose of businesses?

A

To satisfy the needs of customers by providing goods and services

Goods are tangible items while services are intangible.

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2
Q

Who is defined as an entrepreneur?

A

Somebody that starts a business

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3
Q

What are goods?

A

Items that can be used/stored (tangible)

Examples include phones and cars.

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4
Q

What are services?

A

Cannot be stored (intangible) but provide services to customers

Examples include hairdressing and train journeys.

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5
Q

List three examples of needs and wants.

A
  • Needs: food, water, clothes
  • Wants: phone, cars, jewellery
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6
Q

What is the purpose of a business plan?

A

To keep all ideas and details about a business in one place, reducing risk and helping success

Includes objectives, strategies, and financial forecasts.

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7
Q

What are the advantages of creating a business plan?

A
  • Reduces risks
  • Reviews progress
  • Secures finance
  • Reduces risk of failure
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8
Q

What are some disadvantages of creating a business plan?

A
  • Unexpected changes
  • False idea of predicted costs
  • May lack experience in creating a business plan
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9
Q

List three characteristics of an entrepreneur.

A
  • Creative
  • Risk taking
  • Determination
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10
Q

What is a sole trader?

A

A business owned and run by one person

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11
Q

What are the advantages of being a sole trader?

A
  • Easy and inexpensive to set up
  • Complete control over the business
  • All profit belongs to the owner
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12
Q

What are the disadvantages of being a sole trader?

A
  • Unlimited liability
  • Difficult to raise finance
  • Limited set of experience
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13
Q

Define a partnership in business.

A

A business that has two or more owners

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14
Q

What are the advantages of a partnership?

A
  • Easy and inexpensive to set up
  • Shared responsibilities and decision making
  • Shared responsibility for debts
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15
Q

What are the disadvantages of a partnership?

A
  • Unlimited liability
  • Conflict between owners
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16
Q

What is a private limited company (LTD)?

A

A business owned by shareholders where shares are sold privately to friends and family.

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17
Q

List the advantages of a private limited company (LTD).

A
  • Limited liability
  • Selling shares raises finance
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18
Q

What are the disadvantages of a private limited company (LTD)?

A
  • More paperwork
  • Limited growth after 50 shares
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19
Q

What is a public limited company (PLC)?

A

A business owned by shareholders where shares are sold to the public on the Stock Exchange.

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20
Q

List the advantages of a public limited company (PLC).

A
  • Limited liability
  • Easier growth
  • Ability to raise additional finance through share capital
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21
Q

What are the disadvantages of a public limited company (PLC)?

A
  • No control over who buys shares
  • Expensive to set up
  • Greater risk of takeover
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22
Q

What are the main aims and objectives of a business?

A
  • Making a profit
  • Survival
  • Business growth
  • Providing a service
  • Increase market share
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23
Q

What is a stakeholder?

A

Any person, group of people, or organization that has an interest in business activities.

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24
Q

What are internal stakeholders?

A

Individuals who work within a business, making decisions or carrying them out

Examples include managers and employees.

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25
What are external stakeholders?
Individuals or groups that do not work within a business but are affected by its activities ## Footnote Examples include government, suppliers, customers, and local communities.
26
What is organic growth?
Expansion through launching new products and/or entering new markets.
27
What is external growth?
Involves a merger or takeover.
28
Define horizontal integration.
Occurs when two competitors join through a merger or takeover.
29
What is backward vertical integration?
Control of a business earlier in the supply chain.
30
What is forward vertical integration?
Control of another business that operates at a later stage in the supply chain.
31
Define diversification in business.
When businesses in unrelated markets join through a takeover or merger.
32
What are the four main customer needs an entrepreneur must consider?
* Price * Quality * Choice * Convenience
33
What are the four elements of the marketing mix?
* Product * Price * Place * Promotion
34
What is the difference between invention and innovation?
* Invention: creating something that did not previously exist * Innovation: successful commercialisation or adaptation of an invention
35
What are the stages of the product life cycle?
* Introduction * Growth * Maturity * Decline
36
What is price skimming?
Charging a high price initially and then lowering it over time.
37
What is cost-plus pricing?
Adding a percentage to the cost of making/buying a product to ensure profit.
38
What is penetration pricing?
Starting with a low price to enter a competitive market.
39
What is competitive pricing?
Setting prices based on what competitors charge for similar products.
40
What is a loss leader?
A product sold at a loss to attract new customers.
41
List types of media used for advertising.
* Social Media * Websites * Print Media * Television * Radio
42
What does human resources refer to in a business?
The department responsible for managing the workforce
43
What is a tall organizational structure?
An organizational structure with many layers of management.
44
What is a flat organizational structure?
An organizational structure with only a few layers of management.
45
Define span of control.
The number of staff that a manager has responsibility for.
46
What is chain of command?
The route by which instructions and communications flow within a business.
47
What is delayering?
Removing layers of management to make the structure more flat.
48
What is delegation?
Giving tasks by managers to employees further down the chain of command.
49
What does insufficient communication mean?
Not enough communication or poor-quality communication.
50
What does excessive communication mean?
Too much communication, which can confuse or stress employees.
51
What is full-time employment?
Working more than 35 hours per week.
52
What is part-time employment?
Working for only part of the working week, less than full-time.
53
What is flexible-hours working?
Working any number of hours up to full time.
54
What is remote working?
Working from home or while mobile.
55
What are common methods of communication in a business?
* Letter * Email * Text message * Phone conversation * Meeting * Presentation * Video * Social media * Website
56
Why do businesses recruit?
* Replace employees who leave * Business growth * Skill gaps
57
What is internal recruitment?
The process of hiring within a company by prioritising current employees over external ones
58
List advantages of internal recruitment.
* Quick process * Known applicants * Previous experience * Cheaper to recruit
59
List disadvantages of internal recruitment.
* Small pool of applicants * Lack of fresh ideas * May not be experienced
60
What is external recruitment?
The process of finding and hiring new employees from outside an organisation as opposed to promoting or transferring existing staff
61
List advantages of external recruitment.
* New ideas * Fresh enthusiasm * Larger pool of applicants
62
List disadvantages of external recruitment.
* Time to settle in * Expensive * Not previously known
63
What are methods of selection in recruitment?
* CV * Application form * Letter of application * Interviews * Tests * Group activities * References
64
What are financial methods of motivation?
* Pay * Bonuses * Profit Sharing * Fringe Benefits
65
What are non-financial methods of motivation?
* Praise * Award Schemes * Working Environment
66
What is the importance of employee motivation?
* Leads to better performance * Improves employee satisfaction
67
What is the importance of employee retention?
* Familiarity with the business/customers * Saves time and cost of recruitment * Builds team stability
68
What are training methods?
* Induction Training * On-the-Job Training * Off-the-Job Training
69
Why do businesses train workers?
* Support business growth * Address skill shortages * Improve customer service * Increase motivation
70
What is the Equality Act 2010?
Prohibits workplace discrimination on protected characteristics.
71
What are employment contracts?
Written agreements that set out main terms of employment.
72
What are paid holidays for full-time workers?
5.6 weeks’ paid leave per year, including bank holidays.
73
What is the minimum wage?
The least amount employers must pay, varying by age.

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