Business keywords

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Partnership aadvantages
discuss decisions,more finance, more expertise in the business and few legal requirments
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Disadvantages
igher prices and diseconomies of scale.might not prioritse cost control,
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Diseconomies of scale
When a business becomes to big, the cost per unit may increase and the business might become inefficient e.g. slower communication
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Economies of scale
cost advnatages gained when business grows such as suppliers offering discounts
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financial position
shows business assets, liabilities and owners capital
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Disciplinary proedure
process for dealing with alleged employee misconduct
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Grievance procedure
process that deals with complaints made by employee about treatment at work
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Companies Act
large companies need to included location of head office, name etc.
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Diversificiation
strategy for expansion into new markets, developing and selling products
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Savings ad
nothing has to be repaid and no interest has to pe paid
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savings dis
limited money can be invested
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Retained and profit and reserves
Reserves do not have to be repaid and no interest is payable
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dis
new businesses do not have the reserves for this
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Overdraft advantages
used for day-to-day running costs, and used to cover periods where money is going in and out of the business
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dis
interest is payable on the amount spent and expensive if used over a long period of time
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Loan advantages
Payments are spread out of a longer period of time which helps with cash flow
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dis
banks sometimes need security on loans such as tyeing them to assets and expensive if used over a long period of time
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Mortgage advantages
a business can use the product when they are paying their mortgage and payments are spread out so they can pay expensive propertys
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dis
if payments are not paid then property can be taken off the business and interest is really high due to long periods of payment
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Credit card adv
convenient, consumer protection and credit cards can allow free borrowing
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dis
interest rates are high if not paid in the free period and debts are easily racked up
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Hire purchase
buy assets with a deposit and pay in installments
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adv
use up to date equipment which are expensive, payments spread out and after final payment asset is owned
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dis
due to interest it is more expensive then paying with cash up front
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Trade credit
buy now ay later system with trade periods of 30, 60 or 90 days
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ad
you can pay later which helps with cash flow and no interest if paid in the agreed time
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dis
discounts offered will be lost if not paid on time
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venture capitalist ad
can offer good advice and can have good connections and additional resources are offered in relation to tax or personal matters
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Other cards in this set

Card 2

Front

igher prices and diseconomies of scale.might not prioritse cost control,

Back

Disadvantages

Card 3

Front

When a business becomes to big, the cost per unit may increase and the business might become inefficient e.g. slower communication

Back

Preview of the back of card 3

Card 4

Front

cost advnatages gained when business grows such as suppliers offering discounts

Back

Preview of the back of card 4

Card 5

Front

shows business assets, liabilities and owners capital

Back

Preview of the back of card 5
View more cards

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