Business study Unit one

What is a Goods?

A Physical Product

What is a Service?

An activity performed to support a customer, typically intangible.

What is a customer?

An individual or business that purchases goods or services.

What is a consumer?

Someone who uses goods and services produced by the business

What is a Entrepreneur?

A person who starts and runs their own business, taking on financial risks in the hopes of reward

What is a Objectives of Entrepreneurs?

Be their own boss

Keep all the profit

Flexible working hours

What is a Factors of production?

Capital

Enterprice

Land

Labour

What is a Capital?

Equipment used to provide the goods. e.g. machinery

What is a Enterprise?

The skill of the people involved in the business to identify oppotunity

What is a Land?

The physical land siter and other natural resources

What is a Labour?

The skills and number of employee employed

What is a Opportunity cost?

The loss of potential gain from other alternatives when one option is chosen.

What is a Interest rate?

The cost of borrowing and the reward of saving money

What is a Characteristic of Entrepreneur?

Innovative

Risk takers

Hard working and determined

Organised

What is The primary sector?

involves the extraction and harvesting of natural resources, such as agriculture, forestry, fishing, and mining.

What is The secondary sector?`

involves the manufacturing and processing of goods, including industries such as construction and manufacturing.

What is a The tertiary sector?

involves the provision of services rather than goods.

What is Dynamic nature of business?

Technological change

Economic change

Legislation

Environment expectation

What is a Inflation?

Rate at which prices are increasing

What is a Gross Domestic Product?

All income earned in a country’s economy in a year

What is a Demand?

The amount of a product that customers wish to purchase at the current price over a period of time

What is a Sole Trader?

Someone who sets up a business on his or her own

What is a Advantages of sole traders?

quick and easy to set up

Make all the decision yourself

Keep all the profit

What is a Disadvantages of sole traders?

Unlimited liability

Low start up capital

Small businesses

What is a Partnership?

Two or more people join together in a business

What is a Deed of Partnership?

An agreement between partners such as how to divide profit and how it would be valued if someone left

What is a Advantages of partnership?

More fund compared to sole trader

More specialisation on different parts of the business

What is a Disadvantages of partnership?

Internal conflict

Divided profit

Unlimited liability

What is a Shareholder?

person or organisation that owns a share, a part of the company

What is a Profit?

Revenue - cost

What is Unlimited liability?

All personal belong is at risk to settle the business’ dept

What is a stakeholders?

An individuals and organisation that has an interest in the business

What is Limited liability?

When the owner’s responsibility for the business is only the amount they invested

What is a Private limited company?

Is owned by shareholders but are only allow to buy shares if invited

What is a Public limited company?

Large company owned by shareholders and can freely sell shares

What is a Exchange?

A market for buying and selling shares

What is a flotation?

When a private limited company become a public limited company

What is a share issue?

When a company sells additional shares

What is a advantage of Ltd?

Limited liability

company can continue even if the founder dies

What is a disadvantage of Ltd?

Legal procedures

Additional taxes

What is a advantage of Plc?

Raised more investments

attract more media attention

What is a disadvantage of Plc?

A competitor can take over

Giving away infomation

What is a Not-for-profit?

Set up to achieve objectives other than profit

What is a asset?

Something that is owned by a business

What is a aim?

A general goal of a business

What is a objective?

A specific target that is set for a business to achieve

What is a management?

Planning, organising and controlling a business

What is a survival?

Business objective which requires the business to be a able to continue trading

What is profit maximisation?

To achieve the highest possible of revenues over expenditure

What is a shareholder value?

Raising share prices and dividends paid

What is customer satisfaction?

The customers are pleased which the products which they would repeatedly buying

What is ethical objective?

target set by a business to ensure disitions that are morally correct

What is a Owners?

Individual or organisations to whom a business belong

What is Dividends?

Part of the company’s profit paid out to shareholders each year

What is an Employee?

People who works for a business

What is a supplier?

Individual and business that provide goods or service to businesses

What is negotiation?

Two sides discuss what they want and try to reach a solution

What is a location?

The site or sites on which a business is based

What is Proximity to the market?

How close the business is located to their customer

What is a raw material?

Products such as oil, steel, cotton, used in production of other goods

What is Protectionist measures?

Policies that government use to protect their own businesses against foreign competition

What is a tariff?

A tax on foreign goods imported into a country

What is an import?

Goods and services purchased from overseas by consumers of businesses

What is a quota?

Limit on foreign goods imported into a country

What is the advantage of locating oversea?

Cheaper labour

Access to raw material

financial incentives

What is the disadvantage of locating oversea?

Different rules and regulation

Customers have different taste

Supply chain

What is a business plan?

A document setting out what a business does and what it hopes to achieve in the future.

What is a loan?

An amount of money provided to a business for a stated purpose in return for regular repayments including interest charge

Problem of business planning?

Uncertainty

Lack of experience

Change

What is Uncertainty?

Occurs when there is a lack of information about a situation

What is a Risk?

The possibility if something going wrong

What is Main sections of a business plan?

Analysis of the market

the firms objective

Details of the prices

Background infomation

What is a Revenue?

The income the business receive form selling it’s good and services

What is a total costs?

Fixed costs + Variable cost

What is a fixed cost?

Those cost that doesn’t change when a business change their output

What is variable costs?

The costs directly vary with the business’s level output

What is a business expansion?

When an enterprise becomes bigger by increasing its output and sales

What is a internal growth?

When a business get bigger by selling more product

What is a organic growth?

When a business increase its production and the sales of its product

What is an External growth?

When a business get bigger by joining or buying other business

What is an Integration?

The process by which two or more businesses join together

What is a franchise?

When a franchisor sells the right of its products to a franchisee (usually in return for a fee and percentage or turnover)

What is a Franchisee?

Buys a franchise in usually in return for a fee and percentage or turnover

What is a Franchisor?

Sells a Franchise in usually in return for a fee and percentage or turnover

What is Franchising?

When one business sells the right to another business to use its name to sell its product

What is E-commence?

The act of buying or selling a product using an electronic system such as the internet

What is Outsourcing?

When a business uses another business to produce for it

What is a Merger?

When two or more businesses join together to form a new business

What is a takeover?

When one business buy control of another one

What is Economies of scale?

When a business’s unit costs of production falls as its output rises and the business expand

What is Diseconomies of scale?

When a business’s unit costs of production increase as the business expand