8589696
Description
Flashcards by Teddy-Ann Quam, updated more than 1 year ago
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Created by Teddy-Ann Quam
over 7 years ago
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| Question | Answer |
| What is Enterprise? | Enterprise refers to a business and the activities it practices which usually involve some level of risk |
| What is Entrepreneurship? | Entrepreneurship is the practice of innovating and involves taking risks in hope of creating wealth |
| What is Barter? | barter is the exchange of goods and services for other goods and services |
| What is a commodity? | A commodity is an item that is traded (ie. a good) |
| What is Capital? | Money and resources that are used to start a business |
| What is Labour? | The physical or mental work of a person |
| What is specialisation? | Specialization is the division of a task into specific parts. |
| What is Profit? | Profit is the remaining money after all costs have been deducted |
| What is Loss? | This is when the costs and expenses of a business are greater than the revenue of a business |
| What is Trade? | The buying and selling of goods and services in order to make a profit |
| What is an organisation? | A group of persons using resources to carry out specific activities to achieve a goal |
| What is a producer? | A business/individual that makes goods/services |
| What is a consumer? | A person who buys goods and services to satisfy wants and needs |
| What is exchange? | To give one thing and receive another |
| What are goods? | Tangible items that are made to be sold |
| What is service? | Intangible work done for a benefit |
| What is a market? | A situation where buyers and sellers meet to exchange goods and services |
| What is an economy? | An economy is a place where resources are managed to bring benefits to the society |
| What is a bill of exchange? | This is an invoice sent to a debtor to pay for goods bought overseas on credit. It is an order in writing from an exporter to an importer requiring payments of a certain sum of money at a fixed future date. |
| What is a credit card? | A credit card allows the card holder to make payments by simply presenting the card to the seller. A credit card facility is actually a loan given to a customer and thus it is repaid at an interest. |
| What is Electronic transfer? | This is a system used to transfer funds electronically rather than paper-based payment methods. Examples include credit and debit card transactions |
| What is Tele-Banking? | Tele-Banking is receiving banking services over the telephone |
| What is E-commerce | Electronic commerce (e-commerce) is the buying and selling of goods and service using the internet. |
| What are five reasons to establish a business? | Financial independence, being your own boss, creation of jobs, self motivation and using your skills for you |
| Describe a Sole-Trader business | Sector: Private. One owner, unlimited liability, and trade names must be registered. |
| Describe a partnership Business | Sector: Private. 2-20 partners, capital consists of partner's savings and partnership deed is drawn up. |
| Describe private companies | 2-50 members, limited liability, continuity and more capital. Formation: The company must produce the following documents: -The Memorandum of Association -The Articles of Association -Statutory Declaration -Certificate of Incorporation -Certificate of Trading |
| Describe public companies | 7 or more members. Formation: -The Memorandum of Association -The Articles of Association -Statutory Declaration -Certificate of Incorporation -Certificate of Trading -Prospectus |
| What is a co-operative? | Sector: Public. No min/max shareholders. Formation: Formed by groups with similar interests and/or objectives |
| Describe in full all documents needed to form a company. | Memorandum of Association- this defines the relationship of the company with its shareholders The Articles of Association- this contains the purpose of the company and the responsibilities of its members Statutory Declaration- a statement a person swears to be true in the presence of an official witness Certificate of Incorporation- a license to form a corporation Certificate of Trading- a document granting permission to start business Prospectus(for public companies only)- this is a document inviting the public to buy shares |
| What is a multi-national? | A multi-national is an international organisation which is run from the main centre or headquarters. It is usually formed by franchises |
| What is a franchise? | A franchise is an agreement between the franchisee and the parent company allowing the franchisee to sell its products |
| What is a conglomerate? | A group of unrelated companies under the same management |
| What is a nationalized industry? | These are firms that were privately owned but are now owned by the government |
| What is a traditional economy? | An outdated system that provided for basic necessities. Barter was the main system of exchange |
| What is one disadvantage and one advantage of a traditional economic system | Sustainable economy but there were low living standards |
| What is a planned economy | An economy where the government is in charge with little or no input from society |
| What is one disadvantage and one advantage of a planned economy | Emphasis on quality of life but no freedom of choice |
| What is a free market economy? | A system where the customer drives the economy with little government input |
| What are two disadvantage and two advantages of a free market economy? | Freedom of choice and quality of goods but pollution and inequalities of wealth |
| What is a mixed economy? | A system where both the government and society make economic decisions to answer the three basic economic questions |
| What is one disadvantage and one advantage of a mixed economy? | A variety of goods but heavy taxes |
| Who are the four stakeholders (persons who the business relies on) in business? | Owners/Employers, Employees, Customers and the Government |
| What is the role of the Owner/employer in business? | Ensure that a profit is made and high-quality goods are produced, efficient management |
| What is the role of the Employee in business? | To Complete tasks properly |
| What is the role of the customer in business? | Provide Feedback |
| What is the role of the Government in business? | To protect customers and enforce regulations |
| What are four functions of business? | To produce goods, provide employment, make a profit and contribute to economic growth |
| What are the five roles of a business in a community? | Economic (produce goods and stimulate economic growth), Financial (pay fair wages), Social (develop culture and society), Political (ensure laws are being observed) and ethical (good business ethics) |
| What are the four functional areas of a business? | Production- the process by which raw materials are converted into finished goods and services Marketing- the profitable anticipation and satisfaction of the wants of the customer Finance- this area records the accounts of the business and carries out all monetary transactions Personnel- this area deals with the employee's welfare and interacts with workers |
| What are the seven functions of management? | Planning- deciding how the firm achieves goals, Organising-arranging resources into departments, directing- give instructions for tasks, controlling- ensure that everything goes according to plan, coordinating- ensuring all departments work together, delegating-issuing tasks and motivating- encouraging workers |
| What are the responsibilities of management to stakeholders in a business? | To owners- ensure efficiency To customers- ensure high quality of products To employees- fair wages and good working conditions To society- reduce harmful waste To government- adhere to laws and legislations |
| What are are four characteristics of a good leader? | Integrity, Good communication skills, intelligence, devotion and committed. |
| Describe the four leadership styles | Democratic- everyone inputs, participation is encouraged and decisions are made by consensus Autocratic- makes all decisions, delegates instructions and ignores subordinates Laissez-Faire- staff fully in charge, leader does no work at all and procrastinates Participative- subordinates make work-related decisions, there is teamwork and consults workers |
| What are two advantages of an Autocratic leadership style? | Makes quick decisions and is most efficient |
| What are two disadvantages of an Autocratic leadership style? | Demotivated workers, discourages commitment |
| What are two advantages of a democratic leadership style? | High motivation, subordinates have expert powers |
| What are two disadvantages of a Democratic leadership style? | Authority of worker is undermined, long decision making |
| What are two advantages of a Laissez-Faire leadership style? | Workers feel empowered, workers feel motivated |
| What are two disadvantages of a Laissez-Faire leadership style? | Lack of communication, Discourages commitment |
| What are three advantages of a Participative Leadership style? | Better decision making, less stress and more acceptance, motivated workers |
| What are three disadvantages of a participative leadership style? | Loss of power, time-consuming and subordinates make errors |
| What are three internal sources of conflict? | Competition among employees, breakdown in communication and unsuitable leadership style for employees |
| What can an employer do to solve conflict in the workplace? | They can lock-out employees, dismiss workers taking industrial action or use scab labour |
| What can an employee do to solve conflict in the workplace? | picket, strike, do only what is required in their job description or go slow |
| Give six ways in which you can establish good employer to employee relations | Maintain good communication with workers, establish grievance procedures, practice good leadership, seek to motivate, enrich and enlarge jobs and improve working conditions |
| What are three methods of solving conflict? | mediation- bringing in a third party to suggest solutions conciliation- a supervisor that ensures the parties reach to an agreement Arbitration- a third party is asked to give the solution and the two groups accept |
| What is teamwork? | A group of two or more people communicating and coordinating their work to complete a task |
| What are three advantages of teamwork? | Pooling of resources, better decision making, and workload shared |
| What are three disadvantages of teamwork? | There is conflict, free loaders and time consuming |
| What is a Management Information System? | MIS helps management make important and timely decisions by readily proving the relevant information previously inputted |
| What are two advantages and disadvantages of a MIS | Reduces the need for manual labour and in turn, saves money by helping management make better decisions and can provide information at any time. Setting up the system can be costly, staff will have to be trained and small firms may not be able to set up the system |
| What are the five personal needs satisfied through employment? | Basic needs- food, drink and good working conditions Safety Needs, Social needs- being part of a team Self-Esteem- recognition of achievement Self-fulfilment- personal ambition |
| What are the seven characteristics of an Entrepreneur? | They must be: creative, innovative, persistent, goal-oriented, flexible, persevering and be able to take calculated risks |
| Describe the six steps to establish a business. | 1.Conceptualisation- thinking of a business idea 2.Research- scoping the demand for the product 3.Identification of resources 4.Creation of a business plan- this will ensure that a business if profitable 5.Acquisition of funds 6.Operation of a business- who and how a business is run |
| What is the role of the legal and research and development departments in the operation of a business? | legal- deals with legal problems that may arise in the business R & D- involves researching ways to improve the business' current products and production process and innovating new products |
| What is primary research? | Primary research is information that doesn't originally exit |
| What is secondary research? | This is information that already exists |
| What are three advantages and disadvantages of a Sole Trader Business | Easy to form, Profits are yours and personal service is provided as the structure is simple. Limited finance, unlimited liability and lack of spare time |
| What are three advantages and two disadvantages of a Partnership? | Workload is shared, specialization is possible and the business continues Decision making is long, profits are shared equally in the absence of a partnership deed and so there is no motivation |
| What are three advantages and two disadvantages of private limited companies | There is limited liability, continuity and more capital There are a lot of legal procedures and there is a limit on the number of members |
| What are three advantages and one disadvantages of a Public Limited Company | Limited liability, continuity and more capital Lengthy legal procedures |
| What are three sources of capital? | Savings, loans and shares |
| What is Collateral? | This is money or property used as assurance that a loan will be repayed |
| What are four examples of collateral? | property, stocks (shares in a company), money and motor vehicles |
| What are three examples of primary research for a business plan? | Observation, test marketing and postal surveys |
| What are three reasons why business plans are important? | Gives direction, allows comparison of set goals to accomplished goals and helps avoid waste and mistakes |
| What is a feasibility study? | An analysis of the viability of a business idea |
| What are four aspects a feasibility study focuses on? | Demand, target market, profitability and competition |
| What is an executive summary? | The executive summary gives a concise but clear picture of the main points of the business plan |
| What are short term, medium term and long term plans? | Short Term- day to day plans Medium- department-level plans that can last over one year Long Term- major decisions and long-range plans for the business |
| What are three ethical and legal issues in the operations of the business? | Advertising- misleading advertisement Taxation- using unethical means to avoid taxation Environmental- Pollution |
| What are the consequences of unethical and illegal business practices? | Misleading advertisement- decreased customer loyalty Withholding tax- cheating the government of revenue for the country Unethical disposal of waste- pollution Money laundering- distortions in the national economy |
| What is a contract? | A contract is a legally binding agreement between individuals |
| Explain five factors that make a contract valid | Capacity of parties(parties should be able to understand the contract), Legality (contract must abide by the law), Genuineness of consent (parties must enter the contract by free will) acceptance (agreement to accept the terms and conditions of the offer) and Consideration- this is what is given by one party for the action of another party |
| What is the difference between simple contracts and specialty contracts | Simple contracts- this is a written, verbal or implied agreement that must have all factors that make a contract valid Specialty contracts- this requires a deed that is signed and delivered |
| What is the difference between offer and invitation to treat? | Offer- this is when the offerer presents a contract which he is bound to if someone accepts it Invitation to Treat- this is when an offerer invites someone to make an offer to form a contract |
| When is a contract void? | A contract is void when it has no legality or does not meet key validity factors |
| What are three ways in which a discharge of contract may occur? | Performance (Contract is completed), Breach (failed to perform an obligation), Frustration (impossible to complete the contract) and agreement (agreement to discharge contract) |
| What are three ways in which a contract may be terminated? | Legislation (contract is illegal), breach of contract (failed to complete), impossibility of performance (same as frustration) and completion |
| What is a letter of enquiry? | A document used by a potential client to request information from a prospective supplier |
| What is a Catalogue? | A document that gives details about products available for sale |
| What is the requisition? | A document used to control the flow of stocks in the organisation |
| What is a tender/bid? | it outlines the requirements and specifications of tendering for a project |
| What is The Purchase Order? | A document which describes the good to be purchased, the quantity and the price of the items |
| What is an advice note? | The seller sends an advice note to the purchaser to inform them of the goods to be sent and any conditions for receipt |
| What is a delivery note? | A document used in transporting goods to the purchaser. The buyer checks to see if the delivered items match the listed items on the note |
| What is a destination sheet? | A document used by the seller that outlines the destination of goods for delivery |
| What is a goods received note? | A document that confirms receipt of goods and whether the items are in good or damaged conditions |
| What is a stock card? | Document that provides up to date information on goods received |
| What is a Sales invoice? | A document that outlines goods purchased and sent to buyer by the seller |
| What is the pro forma invoice | An invoice sent under certain circumstances |
| What is a debit note | A document sent to purchaser when he is undercharged by the seller |
| What is a credit note? | A document issued to purchaser when he has been overcharged by the seller |
| What is a statement of account? | A summary of a customer's transaction when goods are purchased on credit |
| What is the difference between insurance and assurance? | Insurance is compensation for a risk that may happen while assurance is compensation for a risk that is bound to happen |
| What is the import licence? | A permit that specifies the good to be imported and the quantity that can be imported |
| What is a Bill of lading? | A document that is used in the transportation of goods via ship |
| What is a certificate of origin? | A document that shows the country that manufactured a product |
| What is an airway bill? | A document used to transport goods by air |
| What is a money order? | A method of payment sold by banks to persons who wish to buy goods overseas |
| What is pooling of risks? | When a large number of insurance companies band together to prevent extensive loss when insuring risks such as natural disasters |
| What is the natural resource produced by Trinidad, Guyana, Jamaica and Barbados? | Crude Oil-Trinidad Clay-Barbados Bauxite- Jamaica and Barbados Limestone- Jaimaica Lumber and timber- Guyana |
| What is the difference between production and productivity? | Production is the act of creating and making goods and services while productivity is the efficiency and effectiveness of how well an organisation uses all its resources |
| Why is productivity important? | Productivity is important because a business needs to utilize all its resources to be profitable. It involves Quality, quantity and time spent to produce output |
| What are three effects of external migration on the labour force? | Brain drain and production is negatively affected(economic growth). Caribbean countries gain foreign currency due to family in foreign countries sending money back home |
| What are the effects of internal migration on the labour force? | loss of qualified person in one community and a decrease in the labour force in that community |
| What is Fixed Capital? | This is money used to fund fixed assets |
| What is working capital? | This is capital used in the day to day operations of the business |
| What is Venture Capital? | This is risk capital invested in a new or restructuring business |
| What is a domestic level of production? | This is production at more than a survival level and is sufficient for a country |
| What is a surplus or export level of production? | This is production that satisfies the country and is enough to export and earn foreign exchange |
| What are three characteristics of a cottage industry? | simple tools, equipment, machinery and small amounts of financial capital are used, profits are usually reinvested and labor supply is a minimum amount of workers |
| What are three benefits of backward linkages? | Lower prices of raw materials, stronger relationships between organisations and a reliable supply of raw materials |
| What are three benefits of forward linkages? | There is an established outlet to sell their products, there is a steady supply of income and there is less money spent to supply goods to consumers |
| What are four factors determining the location of a business? | Geographical factors (climate and land), availability of raw materials and supplies, availability of infrastructure (water, roads) and availability of labour supply |
| What are three functions of a small business? (very similar to a normal business) | supply goods and services, create jobs and make a profit |
| What is automation? | The use of machines in a continuous process of operations |
| What is mechanisation? | Mechanisation is the substitution of human and animal labour with machines such as robots and computers |
| What is Computer Aided Design? | CAD is software used to design products that can be configured to meet the customer's satisfaction |
| What is Computer Aided Manufacture? | CAM involves the use of robots and machinery in the manufacturing sector |
| What is Computer Aided Instructions? | CAI is software designed to instruct users on procedures and methods |
| What is the difference between a market and marketing? | A market is a situation where buyers and selling meet to exchange goods and services while marketing is the process of identifying, anticipating and satisfying the requirements of customers profitably |
| What is market research? | This is the precise analysis of collected information about a marketing situation or problem |
| What is pricing? | Pricing is determining how to set prices considering the cost of production, discount and profit margin |
| What are the five necessities for packaging design? | A packaging design for an item should be functional, promotional, distinguished from competitors, convenient for distribution and must communicate the attributes and usage of the product |
| What is Branding? | Branding is distinguishing your product from other products (for example a logo) |
| What are sales promotion? | Sales promotion are efforts to make the consumers aware of the existence of a product |
| What is distribution? | Distribution is the process of getting the product to the consumer |
| What is Advertising? | This is the act of informing and urging consumers to purchase a product |
| What are the four P's of the marketing mix? | Product Price Place- channels of distribution Promotion |
| What are the seven types of market research? | Consumer Research- finding the target market Sales Research- information on the target market Product Research- reaction of consumers to changes in the product Packaging research Advertising research- to find the effectiveness of current advertising Economic Research- changes in economic condition Distribution research- best way to distribute product |
| What are four reasons for conducting Market Research | To identify marketing opportunities and to deal with potential challenges before the fact To receive feedback on existing products To learn about what competitors are doing To know about the changes occurring in the market |
| What are the eight factors that influence consumer behavior? | Price, Price of substitute goods, quality, taste(personal preference), tradition(eg. religious traditions), Income/affordability, spending patterns and brand loyalty |
| What are the four forms of advertising? | Informative advertising- informs potential customers about the benefits of the product Persuasive advertising- entices the customer to purchase the product by using emotional approaches Comparative advertising- compares products to competitors Reminder Advertising- this is used when there are many competitors or when new strategies are needed to improve the popularity of the product |
| What are five functions of advertising? | To highlight the unique features of a product To highlight special events such as sales and late openings(eg. open until midnight) To increase market share by stimulating demand To educate consumers about the product To inform potential buyers of the availability of the product |
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