Business Year 10 Flashcards Preview

Business GCSE > Business Year 10 > Flashcards

Flashcards in Business Year 10 Deck (77)
Loading flashcards...
1

3 sectors of business with explanation

Primary - produce materials
Secondary - using raw materials
Tertiary - providing a service

2

Examples of business in each sector

Primary- farming, fishing, mining, quarrying
Secondary- car/phone manufacturers
Tertiary- retail, entertainment, transport, education, emergency services

3

Reasons for change in primary sector

New machinery, raw materials used up, foreign competition

4

Reasons for change in secondary sector

New machinery, foreign competition

5

Reasons for change in tertiary sector

Change in population, increase/decrease in wealth, increased leisure time, more emphasis on customer service from businesses

6

Business objectives

P-rofit
I-ncrease market share
G-rowth
S-urvival
S-ervice

7

Public sector definition and example

Organisations owned and ran by government, that generate revenue through taxes or payments for the service.
Post office and BBC.

8

Stakeholders definition

An individual or group of people who have an interest in a business and it's activities

9

Entrepreneurship definition

An individual who has the skills and knowledge to set up and run their own business, and is willing to take risks to do so.

10

Objectives of an entrepreneur for first three years

Year 1 - survival
Year 2 - increase profit
Year 3 - grow business

11

3 factors affecting location of a business

Physical geography of area
Transport
Tradition

12

Reasons for business failure

No demand
Poor service/product
Wrong location
Bad management
High costs
Competition

13

Insolvency definition

Describes a firm that can't meet financial commitments (can't cover costs with revenue)

14

Merger definition

2 companies join to form a new larger business

15

Takeover/acquisition definition

Control of a company is achieved by buying a majority of its share (51%)

16

Internal growth definition and examples

A business growing within itself
- buy/open new stores
- buy new factories
- open new markets overseas to sell products

17

Horizontal integration

When organisations in the same stage of production merge or takeover

18

Backwards vertical integration

When an organisation merges with a company in the stage of production behind them

19

Forwards vertical intergration

When an organisation merges with the stage of production in front of them (which provides an outlet)

20

Diversification/conglomerate

Takeover or merge with a completely unrelated business activity

21

Sole trader definition

Business owned and controlled by one person, but can still employ others

22

Partnership definition

A business that has a minimum of 2 owners

23

Sleeping partner definition

Also known as limited partner, invests money in to a business but does not take part in day to day activities or decisions

24

What a deed of partnership provides

-Info on how business operates
-states how profits and losses are shared
-shows how much capital each partner invested
-signatures
-info on each partner

25

Private limited company (Ltd) with advantages and disadvantages

Can only sell shares to family and friends
Advantage : unaffected if someone dies
Limited liability
Disadvantage : public view info
Difficult to find investors

26

Public limited company (Plc) with advantages and disadvantages

Sell shares to anyone by trading on stock market
Advantage: easy to sell shares
Limited liability
Disadvantage: pressure from shareholders
Accounts can be seen
Costly to set up

27

Incorporated businesses with advantage

Limited companies
Limited liability

28

Unincorporated business and advantage

Sole trader and partnerships
Easy and cheap to start

29

Multinationals definition with advantages and disadvantages

Company based in one country but sells and manufactures in a majority of others
Advantage: economies of scale
Disadvantage: cost of transport
Communication problems

30

Franchise definition

Existing company offers for sale its right to use its product, services and logo, usually in a defined location