7133453
Description
Flashcards by Miss Maclachlan, updated more than 1 year ago
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Created by Miss Maclachlan
about 8 years ago
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| Question | Answer |
| Sole Trader | A business owned and run by one person, unlimited liability, keep all profits, difficult to get finance |
| Partnership | 2-20 people, more skills, more expertise, more finance, shared profits, unlimited liability, disagreements |
| Unlimited liability | If the business is in debt the owner could lose their personal possessions |
| Franchisee | Where an individual pays for the right to use an established business' brand name and trading format- they receive training, advice, marketing etc. |
| Marketing Mix | The combination of Price, Product, Place, Promotion- marketing activities to encourage sales |
| Cash flow forecast | A forecast of future cash inflows and outflows. |
| Business plan | Sections include: Aims/objectives, finance, marketing, etc. Used to get a bank loan, organise/motivate owner. |
| Ethical | Doing what is morally right rather than legally enforced. |
| Social Enterprise | A business whose main aim is to benefit society e.g. Big Issue. |
| Aims/Objectives | Goals of the business, e.g. Survival, profit, customer satisfaction, growth |
| Market research | Could be primary or secondary. Used for find out about the needs and wants of customers and the nature of the market |
| Primary research | Research carried out first hand e.g. questionnaires, interviews, focus groups |
| Secondary research | Second hand research- internet research, government statistics. |
| Production methods | Job- one off, individual, bespoke, usually high quality, high price Batch- groups of products- more efficient |
| Fringe benefits | Non financial benefits to employees- e.g. discounts, free meals, free uniform |
| Legislation to protect consumers | Products need to be Satisfactory quality, As Described, Fit for purpose, And last for a Reasonable length of Time. |
| Financial methods of motivation | Bonus, commission, piece rate pay, hourly wage |
| Limited Liability | If the business is in debt, owners (shareholders) will only lose what they have invested. Only applies to limited companies (private and public) |
| Stakeholder | Someone with an interest in the business e.g. employee, customer, owner, local community |
| Efficiency | Maximising outputs whilst minimising inputs |
| E-commerce | Selling on the internet- worldwide, 24/7, cheaper if business has no retail outlet |
| Quality control | Checking quality at end of process |
| Quality assusrance | Checking quality throughout the process |
| Laws which protect workers | Health and safety, equality act, minimum wage |
| Niche market | A small, specialised segment of the market, less competitors and can charge a higher price. |
| Sources of Finance | How the business can access money- e.g. bank loan, owner's own funds, loan from family and friends, overdraft, retaining profits (if they are an established business) |
| Revenue | Money made from sales- also called turnover, sales income, sales turnover. Calculated by quantity sold x selling price |
| Profit | Money made after costs have been taken away from revenue. Profit = revenue - total costs |
| Variable costs | Costs which change directly with output. If the variable costs of producing one sandwich is £1, if the business sells 30 sandwiches, their variable costs are £30. |
| Fixed costs | Costs which do not change with output. If the business sells 0 sandwiches or 300 sandwiches, their fixed costs will still stay the same. E.g. rent, salaries. |
| Total costs | Fixed costs + variable costs. You need this calculation to work out profit (revenue - total costs) |
| Motivation- why is it important? | Good for businesses as motivated workers perform better- they produce more and better quality products |
| How to improve motivation of workers | Training, recognition and praise, better communication, giving staff more responsibility |
| Recruitment- How to select the right employee | Interview, skills tests, shortlisting |
| Advertising a job vacancy | business website, shop window, job centre, recruitment agency |
| What affects the rate of pay (wage or salary) an employee is offered | Their skills, experience, qualifications. |
| Why employ part time staff rather than full time? | More flexible, cheaper, can have more staff working at busy times |
| Why employ full time staff rather than part time? | Could be more motivated (as more job security), more productive, understand their job better |
| How can a business improve cash flow? | Increase trade credit periods (delay their payments to suppliers), reduce or delay costs e.g. investing in a website, get an overdraft or loan |
| Help and support available to businesses | Banks- give advice on business plans Charities- e.g. Prince's trust offer advice and grants |
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