Business 4.0 / 5 based on 2 ratings ? BusinessWhat is businessASAQA Created by: Kathryn1504Created on: 12-04-17 17:08 What is a good? A physical product 1 of 37 What is a service? An item that is intangible 2 of 37 What is a B2B business? (Business to business) - businesses that supply products to other businesses 3 of 37 What is a B2C business? (Business to consumer) - businesses that supply directly to the consumer 4 of 37 If the business' activity is extracting raw materials from the earth, it is in the ..... sector? Primary 5 of 37 If the business' activity uses raw materials to transform them into a product, it is in the ..... sector? Secondary 6 of 37 If the business does not provide a tangible product but provides a service, it is in the ..... sector? Tertiary 7 of 37 What does GDP measure? Total value of the production of an economy 8 of 37 What is a mission statement? Sets out a business' overall purpose to direct and stimulate a whole organisation. 9 of 37 What are corporate objectives? The long term plans for a business from which corporate objectives are derived 10 of 37 What is a corporate objective? Medium to long-term quantifiable goals established to coordinate the business 11 of 37 What are the four main functions of a business? Marketing, operations, finance and human resources (FMOP) 12 of 37 What should objectives be? SMART (specific, measurable, agreed, realistic and timed) 13 of 37 What are common business objectives? profit and profit maximisation, growth, survival, cash flow, social and ethical objectives and diversification 14 of 37 What is a long run objective? Objectives for the future (more then 12 months) 15 of 37 What is a short run objective? A business that wants to maximise objectives in a short amount of tie (less than 12 months) 16 of 37 What are individuals or groups who have an INTEREST in the business called? Stakeholders 17 of 37 Formula for profit? P = total revenue - total costs 18 of 37 Formula for revenue? R = selling price x number of items sold 19 of 37 What are fixed costs? Costs that do not change with the business' level of output 20 of 37 What are variable costs? Costs that change with the business' level of outputs 21 of 37 What are semi-variable costs? Costs which have fixed and variable elements 22 of 37 What are the three sectors of the UK economy? Private, public and not-for-profit 23 of 37 What is a sole trader? A business run and owned by an individual (does not sell shares) 24 of 37 How do you set up a company? Organisation must go through the legal incorporation process to gain limited status and must provide various legal documents 25 of 37 Who owns a company? Shareholders 26 of 37 What is a private limited company? A small -> medium sized business with limited liability, often run by the family/small groups of individuals 27 of 37 What is a public limited company? A business with limited liability, quoted on the stock exchange with 'plc' after its name 28 of 37 What are the three main elements of public sector businesses? Public corporations, public services and municipal services 29 of 37 What is a not-for-profit business? Profit is put back into business to improve the services offered or for social purposes 30 of 37 What is a mutual business? Business run for the benefit of its members 31 of 37 Formula for market capitalisation? MC = current market price x number of issued ordinary shares 32 of 37 Who buys shares? Individuals, businesses, financial organisations 33 of 37 What is one risk of owning shares? Share price could fall 34 of 37 What are the external factors influencing a business? PESTLE+C (political, economic, social, technological, legal, environmental/ethical and competition) 35 of 37 What general factors influence demand? Marketing, popularity, convenience, price, weather, government action, seasonal factors, quality, USP, trends 36 of 37 What are components of change in the external environment? Market conditions and competition, incomes, interest rates, demographic factors, environmental issues and fairtrade 37 of 37
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