Business

?
What is a good?
A physical product
1 of 37
What is a service?
An item that is intangible
2 of 37
What is a B2B business?
(Business to business) - businesses that supply products to other businesses
3 of 37
What is a B2C business?
(Business to consumer) - businesses that supply directly to the consumer
4 of 37
If the business' activity is extracting raw materials from the earth, it is in the ..... sector?
Primary
5 of 37
If the business' activity uses raw materials to transform them into a product, it is in the ..... sector?
Secondary
6 of 37
If the business does not provide a tangible product but provides a service, it is in the ..... sector?
Tertiary
7 of 37
What does GDP measure?
Total value of the production of an economy
8 of 37
What is a mission statement?
Sets out a business' overall purpose to direct and stimulate a whole organisation.
9 of 37
What are corporate objectives?
The long term plans for a business from which corporate objectives are derived
10 of 37
What is a corporate objective?
Medium to long-term quantifiable goals established to coordinate the business
11 of 37
What are the four main functions of a business?
Marketing, operations, finance and human resources (FMOP)
12 of 37
What should objectives be?
SMART (specific, measurable, agreed, realistic and timed)
13 of 37
What are common business objectives?
profit and profit maximisation, growth, survival, cash flow, social and ethical objectives and diversification
14 of 37
What is a long run objective?
Objectives for the future (more then 12 months)
15 of 37
What is a short run objective?
A business that wants to maximise objectives in a short amount of tie (less than 12 months)
16 of 37
What are individuals or groups who have an INTEREST in the business called?
Stakeholders
17 of 37
Formula for profit?
P = total revenue - total costs
18 of 37
Formula for revenue?
R = selling price x number of items sold
19 of 37
What are fixed costs?
Costs that do not change with the business' level of output
20 of 37
What are variable costs?
Costs that change with the business' level of outputs
21 of 37
What are semi-variable costs?
Costs which have fixed and variable elements
22 of 37
What are the three sectors of the UK economy?
Private, public and not-for-profit
23 of 37
What is a sole trader?
A business run and owned by an individual (does not sell shares)
24 of 37
How do you set up a company?
Organisation must go through the legal incorporation process to gain limited status and must provide various legal documents
25 of 37
Who owns a company?
Shareholders
26 of 37
What is a private limited company?
A small -> medium sized business with limited liability, often run by the family/small groups of individuals
27 of 37
What is a public limited company?
A business with limited liability, quoted on the stock exchange with 'plc' after its name
28 of 37
What are the three main elements of public sector businesses?
Public corporations, public services and municipal services
29 of 37
What is a not-for-profit business?
Profit is put back into business to improve the services offered or for social purposes
30 of 37
What is a mutual business?
Business run for the benefit of its members
31 of 37
Formula for market capitalisation?
MC = current market price x number of issued ordinary shares
32 of 37
Who buys shares?
Individuals, businesses, financial organisations
33 of 37
What is one risk of owning shares?
Share price could fall
34 of 37
What are the external factors influencing a business?
PESTLE+C (political, economic, social, technological, legal, environmental/ethical and competition)
35 of 37
What general factors influence demand?
Marketing, popularity, convenience, price, weather, government action, seasonal factors, quality, USP, trends
36 of 37
What are components of change in the external environment?
Market conditions and competition, incomes, interest rates, demographic factors, environmental issues and fairtrade
37 of 37

Other cards in this set

Card 2

Front

What is a service?

Back

An item that is intangible

Card 3

Front

What is a B2B business?

Back

Preview of the front of card 3

Card 4

Front

What is a B2C business?

Back

Preview of the front of card 4

Card 5

Front

If the business' activity is extracting raw materials from the earth, it is in the ..... sector?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all What is business resources »