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IGCSE Business ACG > Workbook 1 > Flashcards

Workbook 1 Flashcards

(49 cards)

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1
Q

Scarcity

A

Shortness of supply

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2
Q

Businesses

A

Offers goods or services

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3
Q

Factors of production

A

Labour
Enterprise
Land
Capital

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4
Q

Opportunity cost

A

Sacrificing the next best thing/best alternitave

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5
Q

Specialisation

A

Pursuing a particular line of work. Restricted to something specific

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6
Q

Devision of labour

A

To do more than one thing

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7
Q

Added value

A

The selling price of the product minus the cost of raw materials

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8
Q

Economic problem

A

An economy’s finite resources are insufficient to satisfy the demand

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9
Q

Private sector

A

Part of the economy which is run by private businesses

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10
Q

Public sector

A

Part of the economy run by the government

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11
Q

Mixed economy

A

An economic system combining both public and private entetprise

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12
Q

Service

A

Intangeble
Unable to touch
The act of a helpful activity

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13
Q

Goods

A

Tangible

Able to touch/product

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14
Q

Main features of business activity

A

Offer goods or services

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15
Q

How can you increase ADDED VALUE

A
  1. Add more components to the product
  2. Increase the selling price
  3. Use cheaper materials to make the product
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16
Q

Primary sector

A

The extraction of raw materials

E.g. Coal, Oil, Iron ore, wood/lumber.

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17
Q

Secondary sector

A

Process/Manufacture of raw materials to make a product.

E.g. Furnature, Steel, Glass.

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18
Q

Tertiary sector

A

Retail (goods or services)

The product is sold

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19
Q

De-industrialisation

A

A decrease in the secondary sector

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20
Q

Chain of priduction

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A

Going from sector to sector.

E.g. Cow -> Mince/meat -> Mcdonalds

21
Q

Monopoly

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A

A company who has more than 30% of the market

22
Q

Privatisation

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A

To transfer from public to private enterprise

23
Q

Internal growth

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A

When a business expands it’s operations

24
Q

External growth

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A

When a company increases it’s profits by buying other companys

25
Merger
A combination of two things especially companies into one
26
Horizontal merger
A merger that occurs between firms that operate in the same space
27
Vertical merger
A merger between two companies that operate at different stages of production
28
Lateral Merger
When two businesses merge that make similar goods but aren't in competition with each other
29
Conglomerate Integration
A process when a business acquires a number of unrelated businesses in order to form a large and highly diverse corporation
30
Take over
When one business buys another business
31
Economies of scale
A proportionate saving in cost gained by a increased level of production as output increases
32
Business plan
A formal statement of business goals and reasons that they are achievable and plans for reaching them
33
Entrepreneur
A person who sets up a business to make profit. They take financial risks to make their company succeed
34
Pro's of an Entrepreneur
- Money - Flexibility - Freedom - Success - Own boss
35
Con's of an Entrepreneur
- Financial risks - Competition - Admin - Unpredictable work schedule - Stress
36
Measures of business size
- Number of employees - Market share - Value of sales - Value of capital gained - XXXprofitsXXX
37
X Measuring size by profits X
Massive company, 20000 employees, 20 million | Small company, 100 employees, 50 million
38
Advantage of business growth
- Wider range of products - More profit - Advertisement of brand - Couldn't obtain economies of scale
39
Why businesses don't grow
- Less legalities - Smaller market size - Don't want to risk it - Too much stress
40
Business failure reasons
- Bankrupt - No land - Failed business plan - Natural disasters (farming) - Lack of resources
41
Economic growth
A measure of how well a country is doing. | GDP
42
Environmentally friendly
Activities that conserve the environment and don't pollute it
43
External cost
The costs paid by the rest of society other than the business
44
National wealth
The national resources and other productive assets of a country
45
Sustainability
Trying to achieve economic growth but without damaging the environment of depleting its natural resources for future generations
46
Pressure group
A group trying to protest against non-environmentally friendly companies/businesses
47
Non-renewable resources
Resources that aren't renewable. E.g Oil, gas or resources that take many years to renew
48
Effective demand
The level of demand that is demanded by clients that can pay for it
49
CASE STUDY
USE THE DATA AND NUMBERS!!!!! AND READ IT WELL!!!

IGCSE Business ACG (5 decks)

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