Business- What is business?

?
Why do businesses exist?
•Create and sustain employment & develop the skills of people
1 of 24
What are the main business objectives?
Survival, Profit Maximisation, Low costs, High Market Share
2 of 24
What are SMART business objectives?
Specific, Measurable, Agreed upon, Realistic, Time-based
3 of 24
What are mission statements?
a formal summary of the aims and values of a company, organization, or individual.
4 of 24
What are corporate objectives?
A well defined and realistic goal set by a company that often influences its internal strategic decisions
5 of 24
What are functional objectives?
Functional objectives are those that relate to the specific functions of a business (e.g. marketing, operations, HRM, finance) and which are designed to support the achievement of corporate objectives.
6 of 24
Why do businesses need to set objectives?
To set a clear idea of what needs to be done to achieve what is expected of the business.
7 of 24
How do you calculate profit?
Sales Revenue- Total Costs
8 of 24
Difference between fixed and variable costs?
Variable costs vary and change with level of output, fixed do not change.
9 of 24
How do you calculate revenue?
Sales price x Number of product sold
10 of 24
Difference between private and public sector
The public sector consists of organizations that are owned and operated by the government, while the private sector consists of organizations that are privately owned and that do not form part of the government.
11 of 24
What are the main business forms?
Sole Trader, Partnership, Social Enterprise/ Not-for-profit
12 of 24
What is unlimited liability? Which business forms have this?
Unlimited liability is when a business and its owner/s are seen as legally equal so the owner/s can lose personal posessions.
13 of 24
What is ordinary share capital?
Ordinary share capital refers to shares that are issued by a company that allow shareholders voting rights within a corporation.
14 of 24
What is market capitalisation?
Share price x Number of shares sold
15 of 24
Where are dividends paid from?
From a distribution of profit
16 of 24
Why do shareholders invest?
They invest because they believe in the business and also to gain their investment and more back.
17 of 24
What are the roles of shareholders?
Financing, Operations, Governance and Control
18 of 24
What factors influence share prices?
Demand, Competition, Sales Revenue, Market Share, Media
19 of 24
What does PESTLE stand for?
Political, Economical, Social, Technological, Legal, Environmental
20 of 24
How does increasing interest rates affect costs?
if interest rates increase, borrowing money cots more as more money has to be paid back.
21 of 24
Why does consumers disposable income decrease if interest rates increase?
They cannot afford to borrow either as they have to pay interest on top.
22 of 24
Changing incomes- how do they affect the business?
If consumers are earning less, they have less disposable income.
23 of 24
What is a saturated market?
A saturated market is one with a lot of high profile competition?
24 of 24

Other cards in this set

Card 2

Front

What are the main business objectives?

Back

Survival, Profit Maximisation, Low costs, High Market Share

Card 3

Front

What are SMART business objectives?

Back

Preview of the front of card 3

Card 4

Front

What are mission statements?

Back

Preview of the front of card 4

Card 5

Front

What are corporate objectives?

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 Businesses resources »