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48 Cards in this Set
- Front
- Back
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Name 5 qualities that are required of a entrepreneur
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Have good communication skills Be able to rise to challenges Have good decision-making skills Be able to delegate tasks |
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What are the features of a Sole trader
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Owned and controlled by one person Owner keeps all of the profits Owner gets to make the decisions Easy to set up Difficult to get time off Unlimited liability |
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What are the features of a partnership |
Partnership agreement outlines the conditions and rules of the business Workload can be shared between the partners Partners bring different skills and knowledge Unlimited liability Arguments between partners can cause delays More capital available profits have to be shared |
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What are the features of a Private Limited Company (Ltd)
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Controlled by Board of Directors Owners have limited liability Control of the company is not lost to strangers More capital available Profits have to be shared Cannot sell shares on the stock market Costly and Complicated to set up |
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What are the features of a Public Limited Company
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Owned by shareholders from the public Controlled by a Board of Directors Owners have limited liability More capital available Easier to borrow money Profits must be shared Costly and complicated to set up |
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What are the reasons for someone to set up their own business
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There's the possibility of making more money More flexible hours |
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What is a stakeholder?
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A Person or group that have an interest in how a business is being run and wants it to be successful |
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Give 5 examples of stakeholders
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Managers, customers, employees, Local community, suppliers, shareholders |
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What does PESTEC stand for?
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Political Economical Social Technological Environmental Competitive |
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What are business objectives?
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An objective is something a business aims for - a target or goal that they wish to achieve |
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Why do businesses have objectives? |
Objectives help a business to focus on what it is doing and the activities it is doing to achieve it's goals |
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How do businesses compete?
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They can compete through: Price Range of Products The offering of e-commerce |
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Name 6 Sources of Finance
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Bank Overdraft Trade Credit Debt Collector Short-Term Bank Loan Hire Purchase Leasing Additional Capital Mortgage Long-term Bank Loan Grant Retained Profits |
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What is Stock Control and why is it important?
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Overstocking means that costs more money to store stock The stock may also become obsolete or perish, meaning money is wasted Having too little stock means that unexpected orders may not be receive on time |
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Name 5 pricing strategies
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High Price Low Price Promotional Pricing Cost-Plus Pricing Psychological pricing |
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What is customer service?
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Customers Service is what a business uses in order to make sure their customers are as happy as possible |
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What methods may a business use in order to increase customer satisfaction? |
Provide the highest possible quality product
Make sure that employees are trained Have a customer care strategy Have a customer complaints procedure Have an after-sales servce |
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What is e-commerce |
E-commerce is a market on the internet. It allows for products to be sold globally |
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What is the product life cycle? |
The product life cycle shows the different stages that a product passes through over time, and the sales that can be expected in that stage
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What is Market Research? |
Market Research involves the constant gathering, recording and analysing of data about an orginisation, products/services and its target market |
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Why is market research important? |
It allows the business to provide the goods and services that the customers want It also allows the business to keep ahead of the competition |
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What are the advantages and disadvantages of Desk Research? |
It is usually easy to obtain It is usually cheaper It allows decisions to be made quickly as the information already exists It may not be reliable or relevant It may be out-dated The information could be biased |
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What are the advantages and disadvantages of Field research |
It is always up to date The information has be gathered for a specific purpose and is more relevant It can be expensive It may be time consuming It may require training in order to be carried out |
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What are the advantages and disadvantages of social media on businesses |
It allows businesses to interact with customers A wide audience can be targeted with advertising A large number of people can be contacted very quickly Questions can be asked and answered Updates can be posted May seem unprofessional |
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What is quality assurance? |
These are methods that a business may use to ensure that their product meets their quality standards |
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Why is Quality Assurance important? |
It heightens customer satisfaction as the product is more likely to meet their needs and wants Business growth High Status |
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Suggest 4 methods of ensuring quality |
Use raw materials are of a high quality Make sure employees have the necessary skills required for the job Ensure machinery and other technology is routinely checked Use quality control methods (Check product at the end of the production process) Use quality management (Try to make sure that every product us made perfectly) |
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What are the features of Job Production |
When a product is started and finished before another one is made. Product is made to customers requirements Unique and one-off products Skilled labour High satisfaction High prices Designs can be changed Expensive equipment may be required Miss out on bulk buying long production time |
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What are the features of Batch Production |
When a group of identical products are made at any one time All products in batch move through production stages at the same time Semi-skilled workers Batches can be changed to meet the requirements of customers Raw materials can be bought in bulk Production may stop between batches (cleaning etc) so may be inefficient. Any mistakes with one item can ruin a whole batch |
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What are the features of Flow production |
Where parts of a product are added as it moves along a production line Product will be finished when it reaches the end of the production line Unskilled workers Large amounts of identical products can be made Raw materials can be bought in bulk Machinery can work without breaks Low customer satisfaction - identical products A fault in the production line can halt production Large demand is needed |
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What factors should be considered when choosing a supplier? |
Price Charged Availability of credit services Quality of supplies Quantity required Location of supplier Availability of discounts Reliability |
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What are the features, advantages and disadvantages of using Labour intensive production? |
Products are made using mainly human effort Employees can be creative and use initiative Labour is always readily available No need to purchase expensive equipment Products can be unique Expensive and time consuming to recruit and train staff Quality can vary depending on the quality of staff |
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What are the features, advantages and disadvantages of using Capital intensive production? |
Products are made using mainly machines and equipment Machines and robots don't need breaks Quality is consistent Fewer employees Employees do not need to be skilled Expensive to buy machinery and equipment Products cannot be changed to meet the different requirements of customers Breakdowns can be expensive and halt production |
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What is on the job training? |
When an employee is trained within the business that they work for. A more experienced employee may show them how to complete a task. Cheaper, and creates good relationships Employee is expected to carry out their regular duties The quality of training may not be as high |
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What is off the job training |
When training takes place outside the business the employee works for Qualifications may be gained Experienced trainers No work can be completed when employees are being trained Can be expensive |
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What is a job description? |
A document that contains information about what a job involves, e.g. duties salary etc. |
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What is a person specification? |
A document showing the ideal candidate for a job. It can be used as a check-list in the recruitment process |
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What is the Data Protection Act? |
This act is concerned with the way a business collects stores, processes and distributes information. Data must be secure, accurate and be made available when requested |
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What is industrial action and what methods can employees take? |
Strike - refuse to work Work to Contract - only do things on contract Overtime ban - Only work contracted hours |
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What are the features, advantages and disadvantages of testing for jobs |
When a business finds out if a person has skills required for a job It allows the business to compare the results of different candidates Time consuming Some people may not perform well (stress/pressure) |
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What are profit statements and what are they used for? |
Shows how much profit has been made Allows the business to see if it is making a profit To see if profits are rising or falling in recent years |
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What is Gross Profit?
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The profit made from buying and selling |
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What is Net Profit? |
The profit after adding other income and subtracting expenses to the Gross Profit |
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What are budgets and what are they used for? |
Show the future cash position of the business It allows the business to plan for the future and help make financial decisions Shows if additional finance is required Helps the business to control expenses by highlighting periods when costs will be high |
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What is the difference between fixed costs and variable costs? |
Fixed costs do not vary with the level of output the business has (e.g. rent), whereas variable costs do vary with the level of output a business has (e.g. raw materials) |
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What is a break-even chart |
A break even chart shows how costs and revenue change on the number of units sold |
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What methods can be used to extend a products life cycle? |
Updating packaging Add new features Lower Price Have a large marketing campaign Re-brand the product |
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