AS Business Studies F291 (The nature of business)

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  • Created by: Michelle
  • Created on: 13-05-13 12:51
What are inputs? Give 2 examples
Raw materials to produce the goods. For example, raw materials, labour, money and owners/directors
1 of 50
What are outputs? Give 2 examples
Finished products made from the inputs. For example, goods and services
2 of 50
What are the factors of production?
Land, labour, capital and enterprise
3 of 50
What is a constraint?
Restrictions or factors that affect the operation of the business
4 of 50
What are the 4 main constraints on a business?
Competition, environment, legislation and the economy
5 of 50
What is adding value?
The business persuading consumers to pay a price that is higher than the cost of producing the product
6 of 50
What is value added?
Business achieves by ensuring that the price of the finished good or service is in excess of the cost of the inputs
7 of 50
What is consumer non-durable mean?
A product that can only be used once
8 of 50
What is consumer durable?
A product that can be used more than once
9 of 50
What is a stakeholder?
Anyone with an interest of the success of that business
10 of 50
Give all 7 stakeholders
Employees, owners, suppliers, customers, lenders, local community and the government
11 of 50
What is the difference between private and social costs & benefits?
Costs a business pays, e.g. wages - the benefit is it gets profit Costs society pay, e.g. pollution, - the benefit is lower crime levels due to employment levels
12 of 50
What are the 4 roles of the state?
consumer, supplier, legal regulator and economic regulator
13 of 50
What is meant by business resources?
The factors that re absolutely essential for a business t operate effectively
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What are essential business resources? (there's 3)
Effective employees, effective managers and finance
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What else does a business need to operate effectively?
USP, reliable suppliers, loyal customers, effective marketing, a clear business plan and luck
16 of 50
What is business success?
A measure of how well a bussines has achieved its objectives
17 of 50
What might be reasons for business failure?
lack of financial discipline, insufficient market research and inability to change
18 of 50
What is market research?
Gathering information on customers and their needs
19 of 50
What is working capital?
Short-term finance required for the day-to-day running of a business
20 of 50
What is cash flow?
Money going out of the business must either balance or be less than the money going into the business, otherwise there is a cash-flow problem
21 of 50
Give all 4 examples of a short-term finance?
Overdraft, loan, trade credit and hire purchase
22 of 50
What is meant by security?
Something that acts as assurance to the lender they will get their money back
23 of 50
Give both examples of a medium-term finance
Medium-term loan, hire purchase&leasing
24 of 50
Give 2 examples of long-term finance
Long-term loans (mortgage), shares
25 of 50
What effects the business's choice of finance, give at least 5
Type of business, security, control, internal vs external sources, existing debts, cash flow, length of time the finance is needed for
26 of 50
What is meant by recruitment?
The process of employing additional staff
27 of 50
What are the stages of recruitment (Remember: Do Not Judge As Sophia's An Idiot)
Demand for labour, Nature of job, Job advertisement, Selection, Appointment, Induction
28 of 50
Job description means?
Expectations for the job, usually including responsibilities
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What is job specification?
Skills and characteristics of an ideal candidate
30 of 50
What is the difference between internal and external recruitment?
Internal: Recruiting from within the business External: Recruiting from outside the business
31 of 50
What is on-the-job training and off-the-job-training?
On: Means employees are trained within the business grounds, usually by an experienced employee. Off: Means the employees go elsewhere to train
32 of 50
What is market research?
Gathering information to help understand the market in which a firm operates in
33 of 50
What is quantitative data?
Information gathered that can analysed nummericaly
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What is qualitative data?
Information that gives a wide range of responses
35 of 50
What is field research?
Gatherng original data for a specific data
36 of 50
What is primary data?
Data gathered by field research
37 of 50
Define desk research
Gathering information that has been collected for some other purpose
38 of 50
Define secondary data
Data gathered by desk research
39 of 50
What is the difference between internal and external data?
Internal: Information gathered inside the organisation External: Information gathered from outside the organiation
40 of 50
Give 2 examples of both internal and external data
Internal: Sales figures, previous survey results, customer data External: Government stats, Competitiors
41 of 50
What is sampling?
Asking a smaller representative group in hope to find the opinions of a larger group
42 of 50
What is random sampling?
Everyone has the same chance of being selected in the populaition
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What is population?
The total number of people who could be included in that specific survey
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What is quota sampling?
The number and characteristics are deliberately matched to the actual population
45 of 50
Define stratified sampling
Population is divided into smaller groups, which are most likely to be the ones interested in the product
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What is cluster sampling?
Where a particular group is included hopefully reflecting the views of the whole population
47 of 50
What is systematic sampling?
Where you use a set formula to select people in the survey
48 of 50
Define convenience sampling
Where any non-scientific method is used to help speed up the process and lower the costs
49 of 50
What is sample size?
Number chosen to be in the research
50 of 50

Other cards in this set

Card 2

Front

What are outputs? Give 2 examples

Back

Finished products made from the inputs. For example, goods and services

Card 3

Front

What are the factors of production?

Back

Preview of the front of card 3

Card 4

Front

What is a constraint?

Back

Preview of the front of card 4

Card 5

Front

What are the 4 main constraints on a business?

Back

Preview of the front of card 5
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