Business Studies

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Why might a business be set up?
- financial, personal or to help others
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What are the main skills an entrepreneur needs?
Ability to think ahead, plan carefully, learn from mistakes and initiative
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What the main advantages and disadvantages of a sole trader?
Easy to set up, be your own boss, you keep the profit, work long hours, unlimited liability.
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What are the main advantages and disadvantages of a partnership?
More ideas, shared workload, more capital, each is legally responsible for the other unlimited liability and disagreements.
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What are the main advantages and disadvantages of private limited companies?
Limited liability, more expensive, legal paperwork and they are legally obliged to publish accounts.
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What are the main advantages and disadvantages of franchises?
Established, less risk, wider marketing, provide training, no creative control or freedom.
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What are the seven main aims a business may have?
Survival, profit, market share, growth, environmental sustainability, ethical considerations and customer satisfaction.
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What are the main stakeholders of a business and how can they influence decisions?
Employees, suppliers, local community, customers and the government. They need to he popular, listen to customers and take advice.
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What sections must a business plan contain and why does it not guarantee success?
Personal details, mission statement, objectives, product description, production details, staffing requirements and finance. The health of the the economy is constantly changing, actions of competitors and the way the business is run.
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What factors are important to consider when deciding on a location?
Labour supply, raw materials, transport, communication links, location of market and government policy.
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What are the 4Ps?
Price, Promotion, Place and Product.
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What is a gap in the market?
A group of customers with a need not currently being met.
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What are the advantages and disadvantages of field research?
Finding out highly specific and relevant information but is expensive and time consuming.
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What are the advantages and disadvantages of desk research?
It's cheap and easy to find but is not always relevant and can be out of date.
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What is a fixed cost?
A cost that doesn't vary with output e.g rent, machinery.
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What is a variable cost?
A cost that is directly related to the product so changes depending on level of output.
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What are the five main sources of start up finance?
Grants, trade credit, overdrafts, loans and venture capital.
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What are the three main reasons for poor cash flow?
Poor sales, over trading and poor business decisions.
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What are three ways a business can improve cash flow?
Give customers less generous credit terms, change payments with suppliers and sell any unsold products before producing more.
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What must a job advert contain? Why is advertising externally better?
Job description and person specification. External means new ideas and the position is filled with a skilled applicant.
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What are the main features of the recruitment process?
Cv/application form, interview and tests e,g aptitude or skills.
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What is the difference between wages and salary?
Wages are paid depending on amount of work done and a salary is a fixed monthly amount.
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What is piece rate, time rate, commission?
Piece is being paid on the output of your work, time is being paid depending on the amount of hours you work and commission is receiving an extra amount for every sale made.
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What is job rotation, enlargement and enrichment? What are the benefits?
Rotating work so workers become good at everything and makes the job varied and interesting, enlargement gives extra responsibility which makes the worker feel more valued and enrichment is giving more responsibility which makes the worker feel value
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What is a fringe benefit and give an example of some?
A reward not part of a workers main income. Daily meal allowance, gym membership, health insurance or company car.
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What are the four employment laws?
Minimum wage, anti discrimination, health and safety and leaving.
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What are the main features of job production?
Individual products. Highly skilled labour which is expensive to the business and takes a long time to make,
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What are the main features of batch production?
Products that are made in batches identical to each other which produces lots of products to sell.
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How do computers increase productivity?
Increase efficiency, saves time in the long run, accurate apart from crashing, also hard to keep up.
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What are the six main features of good customer service? Why is good customer service beneficial to a business?
Accurate product information, reliability, dealing with concerns, fulfilling orders, delivering on time and after sales support. Customer satisfaction, repeat purchases, recommendations, good reputation.
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What conditions must a product reach?
Fit for purpose, match it's description and be of a satisfactory quality.
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What are the advantages and disadvantages of E-Commerce?
Shop 24/7, compare, track progress and secure payments. Can't be seen before buying, trustworthy and may be unsuitable.
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Other cards in this set

Card 2

Front

What are the main skills an entrepreneur needs?

Back

Ability to think ahead, plan carefully, learn from mistakes and initiative

Card 3

Front

What the main advantages and disadvantages of a sole trader?

Back

Preview of the front of card 3

Card 4

Front

What are the main advantages and disadvantages of a partnership?

Back

Preview of the front of card 4

Card 5

Front

What are the main advantages and disadvantages of private limited companies?

Back

Preview of the front of card 5
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