Like centralised and decentralised organisational structures in business

  • Created by: Mxxnxh
  • Created on: 12-03-19 21:41
What is a business?
A business is a firm or an organisation that makes goods or provides services.
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What are goods and sevices?
Goods are physical product such as cars , while services are non-physical items such as hairdressing
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What is a business start up?
A business start up is a new firm operating in the market for the first time.
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What does adding value means?
A business add value when the selling price of an item produced is higher then the cost of all the resources used to make it.
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What is production?
Production is the business activity of using resources to make goods and services.
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What is primary production?
Involves acquiring raw materials. Also known as extractive production.
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What is secondary production?
This is the manufacturing and assembly process. It involves converting raw materials into components.
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What is tertiary production?
Refers to the commercial services that support the production and distribution processes.
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What does interdependence means in business?
Firms rely on other businesses in different sectors for raw materials, component or distribution
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Who is an entrepreneur?
Individuals that set up their own business
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What is an enterprise?
The skills involved in wanting to start or run a business.
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Profit is the reward for risk taking
Losses are the penalty of business failure
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What is a business plan?
Is a report bya new or existing business that contains all of its research findings and explain why the firm hopes to suceed. It includes results of market research and competitor analysis.
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Who is a stakeholder?
Anyone who has an interest in a business or is affected by a business activity. E.g pressure group, banks, customers,etc.
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Who is a monopoly?
Is either the only supplier in the market or a large business with more than 25% of the market
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What is product differentiation?
Is when the products of a particular business stand out from its competitors in terms of price, quality and services
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Product differentiation is achieved through a strong brand image, USP (Uique Selling point), competitive factors.
A sole trader is a business owned and controlled by one person.
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Advantages of sole trader-freedom to make decisons,small capital investments means reuced start up costs, easy to set up.
Disadvantages-responsibilty, long hours, unlimited liability, mght not have the skills to manage all areas of the business.
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Partnerships are businesses owned by two or more people(2 to 20 people).
Advantages-shared expertise/experience,decision making by lots of people,
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Disadvantages- shared responsiblity, disputes can arise over decision making , unlimited liability.(personally liable)
Limited companies are incoporated which means they have their own legal identity and can sue or own assets i their own rights.
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Ownership is divided up into equal parts called SHARES.
Advantage-limited liability--owners are not personally liable for the firm's debts.
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Franchising means when an existing or new business grantsa licence to another business to allow it trade using the brand/ business format legally.
Franchisee is the person who buys the business
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A franchisor is the owner of the business or firm.
Business aims and objective-survival,increase profit, growth and increase in market shares.
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Card 2


What are goods and sevices?


Goods are physical product such as cars , while services are non-physical items such as hairdressing

Card 3


What is a business start up?


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Card 4


What does adding value means?


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Card 5


What is production?


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