A short statement that sets out the overall/general vision for the company
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What information do mission statements include?
Aims, stakeholders, how it provides value to stakeholders, declaration of the firms purpose of existing
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What is an aim?
A goal that the business wants to achieve. Primary objectives include making a profit, growth, increased market share, surival
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What are corporate objectives?
Objectives that relate to the business as a whole, usually set by most senior management
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What does PEST stand for?
Political, Economic, Social, Technological
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What four economic periods does the business cycle show?
Boom, recession, slump, recovery
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What is economic growth?
Annual percentage change in GDP
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What is inflation?
A general and sustained increase in the level of average prices across the whole economy
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What are the four types of unemployment?
Frictional, seasonal, structural and cyclical
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What is consumption?
Spending by individuals/households
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What is investment?
Spending by firms to purchase things such as machinery
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What is government spending?
Spending by the government
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What does Exports-Imports mean?
What we sell abroad minus what we import
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What are the two policies?
Fiscal and Monetary
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What is the fiscal policy?
It helps to stimulate growth. It manipulates taxation for individuals such as lowering VAT or income tax in order to increase consumer spending. It also lowers corporation tax so firms have money more to invest in themselves
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What is monetary policy?
It helps to cut interest rates. This means that mortgages are lower, it is cheaper to borrow money, and also helps to increase the money supply which means that more money is available for everyone to acquire. Known as Quantitative Easing
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Other cards in this set
Card 2
Front
What information do mission statements include?
Back
Aims, stakeholders, how it provides value to stakeholders, declaration of the firms purpose of existing
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