Layla's GCSE Business Revision Flashcards

A set of 202 fill-in-the-blank practice flashcards designed for GCSE Business students covering core topics, financial formulas, and exam command words.

What is a business?

An organisation that provides _______ or _______ to customers in exchange for _______.

An organisation that provides goods or services to customers in exchange for money.

What is the difference between a good and a service?

A good is a _______, _______ product that can be seen and touched. A service is an _______ product that cannot be physically touched.

A good is a physical, tangible product that can be seen and touched (e.g., a car, a phone, clothes). A service is an intangible product that cannot be physically touched (e.g., banking, insurance, education, healthcare).

What are financial aims?

Financial aims are objectives related to _______ and _______, such as: Survival, _______, Sales, _______, Financial security.

Objectives related to money and finance, such as: Survival, Profit, Sales, Market share, Financial security.

What are non-financial aims?

Non-financial aims are objectives not directly related to _______, such as: _______ objectives, Personal satisfaction, _______, Independence and control.

Objectives not directly related to money, such as: Social objectives, Personal satisfaction, Challenge, Independence and control.

Why do business objectives change?

Business objectives change in response to: Market conditions, _______, Performance, _______, Internal reasons.

In response to: Market conditions, Technology, Performance, Legislation, Internal reasons.

What is a sole trader?

A sole trader is a business owned and run by _______ person who has _______ liability.

A business owned and run by one person who has unlimited liability.

What is a partnership?

A partnership is a business owned by _______ or more people who share _______, profits, and _______.

A business owned by two or more people who share responsibility, profits, and liability.

What is a private limited company (Ltd)?

A private limited company (Ltd) is a company owned by _______, with shares sold _______, and shareholders have _______ liability.

A company owned by shareholders, with shares sold privately, and shareholders have limited liability.

What is a public limited company (PLC)?

A public limited company (PLC) is a company whose shares are sold to the _______ on the _______, with shareholders having _______ liability.

A company whose shares are sold to the public on the stock exchange, with shareholders having limited liability.

What is a public corporation?

A public corporation is a business owned and run by the _______ (e.g., BBC, NHS, Royal Mail historically).

A business owned and run by the government (e.g., BBC, NHS, Royal Mail historically).

What is limited liability?

Under limited liability, shareholders are only liable for the amount they have _______ in the business. Their _______ assets are protected if the business fails.

Shareholders are only liable for the amount they have invested in the business. Their personal assets are protected if the business fails.

What is unlimited liability?

Under unlimited liability, the owner is _______ responsible for all business debts. _______ assets (house, car, savings) are at risk if the business fails.

The owner is personally responsible for all business debts. Personal assets (house, car, savings) are at risk if the business fails.

What are the advantages of being a sole trader?

Sole trader advantages include: Easy and cheap to _______, Owner keeps _______ profits, Full _______ over decisions, _______ (no need to publish accounts).

Easy and cheap to set up, Owner keeps all profits, Full control over decisions, Privacy (no need to publish accounts).

What are the disadvantages of being a sole trader?

Sole trader disadvantages include: _______ liability, Harder to raise _______, Long hours, no cover for _______, Limited _______ and knowledge.

Unlimited liability, Harder to raise finance, Long hours, no cover for illness, Limited skills and knowledge.

What are the advantages of a partnership?

Partnership advantages include: More _______ available, Shared _______ and responsibility, Shared _______ and expertise, _______.

More capital available, Shared workload and responsibility, Shared skills and expertise, Privacy.

What are the disadvantages of a partnership?

Partnership disadvantages include: _______ liability (usually), _______ between partners, Profits are _______, Partnership ends if one partner _______ or leaves.

Unlimited liability (usually), Disagreements between partners, Profits are shared, Partnership ends if one partner dies or leaves.

What are the advantages of a private limited company (Ltd)?

Private limited company (Ltd) advantages include: _______ liability, Easier to raise _______ (can sell shares), _______ (business continues if a shareholder dies), Separate _______ identity.

Limited liability, Easier to raise finance (can sell shares), Continuity (business continues if a shareholder dies), Separate legal identity.

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

Private limited company (Ltd) disadvantages include: Shares cannot be sold to the _______, More _______ to set up and run, Accounts must be _______ (less privacy), More legal requirements and _______.

Shares cannot be sold to the public, More expensive to set up and run, Accounts must be published (less privacy), More legal requirements and regulations.

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

Public limited company (PLC) advantages include: _______ liability, Shares can be sold to the public on the _______, Large amounts of _______ can be raised, Easier to _______ and expand.

Limited liability, Shares can be sold to the public on the stock exchange, Large amounts of finance can be raised, Easier to grow and expand.

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

Public limited company (PLC) disadvantages include: Very _______ to set up, Risk of _______ (anyone can buy shares), Loss of _______ by original owners, Accounts must be _______, Shareholder pressure for short-term _______.

Very expensive to set up, Risk of takeover (anyone can buy shares), Loss of control by original owners, Accounts must be published, Shareholder pressure for short-term profits.

What is a franchise?

A franchise is a business arrangement where the _______ grants a _______ the right to use its brand name, products, and business model in exchange for a _______ and ongoing _______.

A business arrangement where the franchisor grants a franchisee the right to use its brand name, products, and business model in exchange for a fee and ongoing royalties.

What is a franchisor?

A franchisor is the _______ business that sells the right to use its _______, products, and _______ model to franchisees.

The original business that sells the right to use its brand, products, and business model to franchisees.

What is a franchisee?

A franchisee is the individual or business that _______ the right to operate a franchise and pays _______ and _______ to the franchisor.

The individual or business that buys the right to operate a franchise and pays fees and royalties to the franchisor.

What are the advantages of a franchise?

ranchise advantages include: Established _______ and reputation, _______ and training from franchisor, Lower risk of _______, _______ business model.

Established brand and reputation, Support and training from franchisor, Lower risk of failure, Proven business model.

What are the disadvantages of a franchise?

Franchise disadvantages include: Pay franchise _______ and _______, Less _______ and independence, Must follow franchisor's _______, Reputation tied to _______.

Pay franchise fees and royalties, Less control and independence, Must follow franchisor's rules, Reputation tied to franchisor.

What is a social enterprise?

A social enterprise is a business that aims to achieve _______ or _______ objectives rather than profit maximisation. Profits are _______ to further the social mission.

A business that aims to achieve social or environmental objectives rather than profit maximisation. Profits are reinvested to further the social mission.

What is a multinational company?

A multinational company is a business that operates in _______ than one country, with headquarters in one country and operations in _______.

A business that operates in more than one country, with headquarters in one country and operations in others (e.g., Apple, McDonald's, Nike).

What is the primary sector?

The primary sector involves _______ raw materials from the earth (e.g., farming, _______, fishing, forestry).

Extracting raw materials from the earth (e.g., farming, mining, fishing, forestry).

What is the secondary sector?

The secondary sector involves converting _______ materials into _______ or semi-finished goods (e.g., manufacturing, construction, processing).

Converting raw materials into finished or semi-finished goods (e.g., manufacturing, construction, processing).

What is the tertiary sector?

The tertiary sector involves providing _______ to customers and businesses (e.g., banking, retail, healthcare, education, transport).

Providing services to customers and businesses (e.g., banking, retail, healthcare, education, transport).

What factors influence business location?

Factors influencing business location include: Proximity to _______, Availability and cost of _______, Proximity to _______, Proximity to _______, Impact of the _______, Legal controls and trade blocs.

Proximity to market, Availability and cost of labour, Proximity to materials, Proximity to competitors, Nature of the business activity, Impact of the internet, Legal controls and trade blocs.

What is globalisation?

Globalisation is the increasing _______ of economies and societies around the world through _______, investment, technology, and _______.

The increasing integration of economies and societies around the world through trade, investment, technology, and communication.

What are the opportunities of globalisation?

Opportunities of globalisation include: Access to new _______ and customers, Access to cheaper _______ and resources, Access to new _______ and ideas, _______ of scale.

Access to new markets and customers, Access to cheaper labour and resources, Access to new technology and ideas, Economies of scale.

What are the threats of globalisation?

Threats of globalisation include: Increased _______ from foreign businesses, _______ rate fluctuations, Political and economic _______, Cultural and _______ barriers, Reliance on international _______ chains.

Increased competition from foreign businesses, Exchange rate fluctuations, Political and economic instability, Cultural and language barriers, Reliance on international supply chains.

What is an exchange rate?

An exchange rate is the _______ of one currency expressed in terms of _______ currency (e.g., £1 = €1.15, £1 = $1.30).

The value of one currency expressed in terms of another currency (e.g., £1 = €1.15, £1 = $1.30).

What happens when the exchange rate falls?

When the exchange rate falls: Exports become _______ → demand for exports _______. Imports become more _______ → demand for imports _______. UK _______ benefit. UK _______ suffer.

Exports become cheaper → demand for exports INCREASES. Imports become more expensive → demand for imports DECREASES. UK exporters benefit. UK importers suffer.

What happens when the exchange rate rises?

When the exchange rate rises: Exports become more _______ → demand for exports _______. Imports become _______ → demand for imports _______. UK _______ suffer. UK _______ benefit.

Exports become more expensive → demand for exports DECREASES. Imports become cheaper → demand for imports INCREASES. UK exporters suffer. UK importers benefit.

How does government spending affect businesses?

Government spending affects businesses by providing public services and _______, creating jobs through _______ sector employment, _______ providing funding, and public spending cuts _______ demand.

Provides public services and infrastructure, Creates jobs through public sector employment, Taxation provides funding, Public spending cuts reduce demand.

How does legislation affect businesses?

Legislation affects businesses because it increases _______, creates _______, restricts _______, and protects _______.

Increases costs, Creates opportunities, Restricts activities, Protects employees.

What is a trade bloc?

A trade bloc is a group of countries that agree to trade with each other with _______ or no _______ (e.g., EU, NAFTA/USMCA, ASEAN).

A group of countries that agree to trade with each other with reduced or no tariffs (e.g., EU, NAFTA/USMCA, ASEAN).

What is a tariff?

A tariff is a _______ on imported goods, making them more _______ and less _______ compared to domestic products.

A tax on imported goods, making them more expensive and less competitive compared to domestic products.

How do interest rates affect businesses?

Higher interest rates → borrowing costs _______ → reduces _______. Higher rates → less disposable income → lower _______. Lower rates → borrowing cheaper → encourages _______. Lower rates → consumers spend more → higher _______.

Higher rates → borrowing costs increase → reduces investment. Higher rates → less disposable income → lower spending. Lower rates → borrowing cheaper → encourages investment. Lower rates → consumers spend more → higher sales.

What is PEST analysis?

In PEST analysis: Political: government _______, tax, legislation, trade policy. Economic: interest rates, _______, exchange rates, economic growth. Social: trends, _______, lifestyle changes, population. Technological: new technology, _______, digitalisation, e-commerce.

Political: government policies, tax, legislation, trade policy. Economic: interest rates, inflation, exchange rates, economic growth. Social: trends, demographics, lifestyle changes, population. Technological: new technology, automation, digitalisation, e-commerce.

What is revenue?

Revenue is the total _______ a business receives from selling its products, calculated as $\text{Price} \times \text{Quantity Sold}$.

The total income a business receives from selling its products (price × quantity sold).

What is market share?

Market share is the _______ of total sales in a market that a business has.

The proportion of total sales in a market that a business has.

What is customer satisfaction?

Customer satisfaction is the extent to which customers are _______ with a business's products or services.

The extent to which customers are happy with a business's products or services.

What is profit?

Profit is the difference between _______ and costs, calculated as $\text{Revenue} - \text{Total Costs}$.

The difference between revenue and costs (revenue - total costs).

What is business growth?

Business growth is an increase in the _______ of a business, measured by sales, _______, employees, or _______ share.

An increase in the size of a business, measured by sales, profits, employees, or market share.

What causes business failure?

Business failure can be caused by cash flow problems/lack of _______, not being _______, failure to _______ to changes, poor _______, over-_______, or economic _______.

Cash flow problems/lack of finance, Not competitive, Failure to adapt to changes, Poor management, Over-expansion, Economic downturn.

What is internal communication?

Internal communication is communication _______ a business (e.g., between employees, managers, departments).

Communication within a business (e.g., between employees, managers, departments).

What is external communication?

External communication is communication between a business and _______ parties (e.g., customers, suppliers, investors, the public).

Communication between a business and external parties (e.g., customers, suppliers, investors, the public).

What is a barrier to communication?

A barrier to communication is anything that _______ effective communication from taking place.

Anything that prevents effective communication from taking place.

What are examples of barriers to communication?

Examples of barriers to communication include: 1. _______ differences. 2. Physical _______. 3. Use of _______. 4. _______ differences. 5. Poor _______ skills. 6. _______ barriers. 7. Noise and _______.

1. Language differences. 2. Physical distance. 3. Use of jargon. 4. Cultural differences. 5. Poor listening skills. 6. Emotional barriers. 7. Noise and distractions.

What are the consequences of ineffective communication?

Consequences of ineffective communication include: Mistakes and _______, Waste of time and _______, Low employee _______, Poor customer _______, _______ between employees, Reduced _______.

Mistakes and errors, Waste of time and resources, Low employee morale, Poor customer service, Conflict between employees, Reduced productivity.

What is full-time employment?

Full-time employment involves working a standard number of hours (typically _______ to _______ hours per week) with full employment _______ and benefits.

Working a standard number of hours (typically 35-40 hours per week) with full employment rights and benefits.

What is part-time employment?

Part-time employment involves working _______ hours than a full-time employee (e.g., _______ to _______ hours per week), often with fewer _______.

Working fewer hours than a full-time employee (e.g., 16-25 hours per week), often with fewer benefits.

What is job share?

In a job share, two employees share the _______ of one full-time job, splitting the _______ and pay.

Two employees share the responsibilities of one full-time job, splitting the hours and pay.

What is casual/seasonal/temporary employment?

Casual, seasonal, or temporary employment is employment that is not _______, often for a _______ period or during _______ seasons.

Employment that is not permanent, often for a fixed period or during peak seasons.

What is a job description?

A job description is a document that outlines the _______, responsibilities, and _______ of a job.

A document that outlines the duties, responsibilities, and requirements of a job.

What is a person specification?

A person specification is a document that outlines the _______, skills, _______, and personal _______ needed for a job.

A document that outlines the qualifications, skills, experience, and personal attributes needed for a job.

What is a CV/resume?

A CV/resume is a document that outlines a person's _______, work _______, skills, and _______, used when applying for a job.

A document that outlines a person's education, work experience, skills, and achievements, used when applying for a job.

What is an application form?

An application form is a _______ form used by businesses to collect _______ from job applicants.

A standard form used by businesses to collect information from job applicants.

What is internal recruitment?

Internal recruitment means filling a job vacancy from _______ the business (promoting or transferring existing employees).

Filling a job vacancy from within the business (promoting or transferring existing employees).

What is external recruitment?

External recruitment means filling a job vacancy from _______ the business (advertising to new candidates).

Filling a job vacancy from outside the business (advertising to new candidates).

What are the advantages of internal recruitment?

Advantages of internal recruitment include: Cheaper and _______, Known _______ and reliability, _______ employees, Less _______ required, Boosts employee _______.

Cheaper and faster, Known performance and reliability, Motivates employees, Less training required, Boosts employee morale.

What are the disadvantages of internal recruitment?

Disadvantages of internal recruitment include: Limited _______ of candidates, May create _______, No new _______, Creates another _______.

Limited pool of candidates, May create resentment, No new ideas, Creates another vacancy.

What are the advantages of external recruitment?

Advantages of external recruitment include: Wider _______ of candidates, Brings in new _______, Access to _______ skills, Can attract _______-quality candidates.

Wider pool of candidates, Brings in new ideas, Access to specialist skills, Can attract high-quality candidates.

What are the disadvantages of external recruitment?

Disadvantages of external recruitment include: More _______ and time-consuming, Candidate's performance is _______, May _______ existing employees, Longer _______ period needed.

More expensive and time-consuming, Candidate's performance is unknown, May demotivate existing employees, Longer induction period needed.

What is induction training?

Induction training is training given to _______ employees to familiarise them with the business, its _______, health and safety, and their _______.

Training given to new employees to familiarise them with the business, its policies, health and safety, and their role.

What is on-the-job training?

On-the-job training takes place at the _______ while the employee is _______, learning from colleagues or managers.

Training that takes place at the workplace while the employee is working, learning from colleagues or managers.

What is off-the-job training?

Off-the-job training takes place _______ from the workplace, such as courses, _______, college classes, or _______.

Training that takes place away from the workplace, such as courses, workshops, college classes, or conferences.

What are the benefits of training?

Benefits of training include: Improved _______ and efficiency, Better _______, Higher motivation and _______, Compliance with health and _______, Improved competitive _______, Reduced errors and _______.

Improved productivity and efficiency, Better quality, Higher motivation and retention, Compliance with health and safety, Improved competitive advantage, Reduced errors and waste.

What are the limitations of training?

Limitations of training include: _______ to provide, Time-_______, Trained employees may _______ for competitors, Training may not always be _______.

Costly to provide, Time-consuming, Trained employees may leave for competitors, Training may not always be effective.

What is motivation?

Motivation is the _______ and willingness of an employee to work _______ and achieve business goals.

The desire and willingness of an employee to work hard and achieve business goals.

What is Frederick Taylor's theory of motivation?

Taylor believed employees are motivated by _______ and that productivity can be increased by using _______ incentives and _______ management.

Taylor believed employees are motivated by money and that productivity can be increased by using financial incentives and scientific management.

What is Abraham Maslow's hierarchy of needs?

Maslow's hierarchy of needs states people are motivated in order: 1. _______, 2. _______, 3. _______, 4. _______, 5. _______.

Maslow created the hierarchy of needs. People are motivated by meeting needs in order: 1. Physiological, 2. Safety, 3. Social, 4. Esteem, 5. Self-actualisation.

What is Frederick Herzberg's two-factor theory?

Herzberg identified two factors: _______ factors (must be present to prevent dissatisfaction) and _______ (provide satisfaction).

Herzberg identified two factors: Hygiene factors (must be present to prevent dissatisfaction) and Motivators (provide satisfaction).

What are financial methods of motivation?

Financial methods of motivation include: _______ (salary/wages), _______, _______, Promotion (with pay rise), _______ benefits, _______ sharing.

Financial methods of motivation include: Salary/Wages, Bonus, Commission, Piece rate, Promotion (with pay rise), Fringe benefits, Profit sharing.

What are non-financial methods of motivation?

Non-financial methods of motivation include: Job _______, Job _______, _______, Recognition, _______ development opportunities, _______.

Job rotation, Job enrichment, Autonomy, Recognition, Career development opportunities, Empowerment.

What is an organisational chart?

An organisational chart is a diagram showing the _______ of a business, including the _______, departments, and _______ between employees.

A diagram that shows the structure of a business, including the hierarchy, departments, and relationships between employees.

What is a hierarchical structure?

A hierarchical/tall structure has many levels of _______, where authority flows from the _______ down.

A tall structure with many levels of management, where authority flows from the top down.

What is a flat structure?

A flat structure has _______ levels of management, giving more _______ and autonomy to employees.

A structure with few levels of management, giving more responsibility and autonomy to employees.

What is a centralised structure?

A centralised structure is one where decision-making _______ is kept at the _______ of the business.

A structure where decision-making authority is kept at the top of the business.

What is a decentralised structure?

A decentralised structure is one where decision-making authority is _______ to lower levels and _______ managers.

A structure where decision-making authority is delegated to lower levels and local managers.

What are the advantages of centralisation?

Advantages of centralisation include: _______ decision-making, Strong _______ and control, Quick decisions in a _______, _______ of scale, Easier to implement _______-wide changes.

Consistent decision-making, Strong leadership and control, Quick decisions in a crisis, Economies of scale, Easier to implement company-wide changes.

What are the advantages of decentralisation?

Advantages of decentralisation include: _______ employees, Faster responses to _______ needs, Develops future _______, Local managers have better _______ knowledge, Reduces _______ on senior management.

Empowers employees, Faster responses to local needs, Develops future managers, Local managers have better market knowledge, Reduces burden on senior management.

What is the chain of command?

The chain of command is the route through which _______ and instructions are passed _______ from senior managers to employees.

The route through which orders and instructions are passed down from senior managers to employees.

What is the span of control?

Span of control refers to the number of _______ or employees directly _______ by a manager.

The number of subordinates or employees directly managed by a manager.

What is delegation?

Delegation involves giving _______ and responsibility to a _______ to carry out a task or make a decision.

Giving authority and responsibility to a subordinate to carry out a task or make a decision.

What are the main functional areas of a business?

Functional areas include: 1. Human Resources - workforce planning, _______, training, health and safety. 2. Finance - wages, _______, budgets, accounting. 3. Marketing - market research, _______, promotion, advertising. 4. Production - manufacturing, _______ control, stock control, product design.

1. Human Resources - workforce planning, recruitment, training, health and safety. 2. Finance - wages, cash-flow, budgets, accounting. 3. Marketing - market research, pricing, promotion, advertising. 4. Production - manufacturing, quality control, stock control, product design.

What is internal finance?

Internal finance is finance generated from _______ the business (e.g., personal _______, retained _______, selling _______).

Finance generated from within the business (e.g., personal savings, retained profit, selling assets).

IWhat are internal sources of finance?

internal sources of finance include: 1. Personal _______. 2. _______ profit. 3. Selling _______.

1. Personal savings. 2. Retained profit. 3. Selling assets.

What is retained profit?

Retained profit is profit _______ in the business after paying costs, _______, and dividends to shareholders, used to finance _______.

Profit that is kept in the business after paying costs, taxes, and dividends to shareholders, used to finance growth.

What is external finance?

External finance is finance provided from _______ the business (e.g., bank _______, share _______, overdrafts).

Finance provided from outside the business (e.g., bank loans, share capital, overdrafts).

What are external sources of finance?

External sources of finance include: 1. _______. 2. Bank _______. 3. _______ capital. 4. _______ capital. 5. _______. 6. Trade _______.

1. Overdraft. 2. Bank loan. 3. Share capital. 4. Venture capital. 5. Crowdfunding. 6. Trade payables.

What is an overdraft?

An overdraft is a _______-term source of finance allowing a business to withdraw _______ money from its bank account than it has, up to an agreed _______.

A short-term source of finance allowing a business to withdraw more money from its bank account than it has, up to an agreed limit.

What are trade payables?

Trade payables are money _______ to suppliers for goods or services received on _______ (buy now, pay later).

Money owed to suppliers for goods or services received on credit (buy now, pay later).

What is share capital?

Share capital is money raised by a company by selling _______ to shareholders, providing a _______ source of finance.

Money raised by a company by selling shares to shareholders. Share capital provides a permanent source of finance.

What is venture capital?

Venture capital is finance provided by investors to businesses with _______ growth potential in exchange for an _______ stake.

Finance provided by investors to businesses with high growth potential in exchange for an ownership stake.

What is crowdfunding?

Crowdfunding involves raising _______ amounts of money from a _______ number of people, usually via _______ platforms.

Raising small amounts of money from a large number of people, usually via online platforms.