Untitled Flashcards Set

What are the main roles of business in the economy?

Producing goods and services, economic roles, social roles.

What are the four methods to classify businesses?

Classification by legal structure, industry, size, and geographical spread.

What is a private sector business?

Businesses that are privately owned and operate for profit.

What are the five main types of industry groupings?

Primary, Secondary, Tertiary, Quaternary, and Quinary sectors.

What factors influence the choice of legal structure for a business?

Size of the business, Ownership, and Funding requirements.

What are some external influences on businesses?

Market changes, Economic influences, Technological influences, Globalisation.

What are the internal influences on a business?

Management, Resources, Business Culture, Product, Location.

What are the stages of the business life cycle?

Establishment, Growth, Maturity, Decline.

What does insolvency mean?

A situation where a business cannot meet its financial obligations.

What is the function of an administrator in business?

A person appointed to manage a company in financial distress.

What is receivership?

A legal process where a third party is appointed to manage the business’s assets.

What does liquidation refer to?

The process of winding up a company, selling its assets to pay off creditors.

What is bankruptcy?

A legal status of a person or entity that cannot repay debts.