Business studies - Unit 1 - What is business?

?
  • Created by: Beanie10
  • Created on: 19-10-19 09:28
Business objectives definition
Targets which the business adopts in order to achieve its primary aims.
1 of 20
Benefits of setting objectives
-gives the business something to work towards -keeps staff motivated -shows the progress of a business
2 of 20
Factors of an unincorporated business
-owner is the business -owner has unlimited liability -usually a sole trader
3 of 20
Factors of an incorporated business
-owners have limited liability -usually operate as private limited companies
4 of 20
What is unlimited liability
when a business goes under and the owner of that business is responsible for paying for all the debt a business might have
5 of 20
What is limited liability?
-protection for shareholders in a company, shareholders can only lose what they invest into the company
6 of 20
Advantages of a private limited company
-shareholders have limited liability -easier to raise finance -stable form of structure
7 of 20
Disadvantages of a private limited company
-business decisions are harder to make -have to share profit - harder to set up
8 of 20
Advantages of a public limited company
-shareholders are able to buy and sell their shares -raise capital through public issue of shares
9 of 20
Disadvantages of a public limited company
-competitors can see financial records -original owners lose control and ownership of the business
10 of 20
What is a share?
an individual part of the issued share capital of a company
11 of 20
What is market capitalisation?
represents the total market value of the issued share capital of the company
12 of 20
Factors that influence a PLC's share price
-financial performance -dividend policy -state of the economy
13 of 20
What is a stakeholder?
any individual or organisation who has a vested interest in the activities and decision making of a business
14 of 20
What is GDP?
-a measure of the value of output in the economy -value used to assess changes in economic growth
15 of 20
Real incomes definition
real incomes measure the amount of disposable income available to consumers
16 of 20
Factors affecting real income
-tax -rent -employment levels -inflation -wage growth
17 of 20
Interest rates definition
An interest rate is the reward for saving and the cost of borrowing expressed as a percentage of the money saved or borrowed
18 of 20
What happens when interest rates fall?
-cost of servicing loans/debts is reduced - boosting spending power and consumer confidence leading to more spending -effective disposable income rises leading to lower mortgage costs
19 of 20
Benefits of environmentally friendly actions
-lower raw material costs and waste disposal charges -easier to raise finance -longer life of assets that are recycled or repaired
20 of 20

Other cards in this set

Card 2

Front

Benefits of setting objectives

Back

-gives the business something to work towards -keeps staff motivated -shows the progress of a business

Card 3

Front

Factors of an unincorporated business

Back

Preview of the front of card 3

Card 4

Front

Factors of an incorporated business

Back

Preview of the front of card 4

Card 5

Front

What is unlimited liability

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all What is business? resources »