Understanding Business Flashcards

What is an entrepreneur?
Someone who thinks of a business idea and develops it.
1 of 26
Identify the four factors of production.
Land, Labour, Capital & Enterprise.
2 of 26
What is capital?
The money the owner has invested in the business and all the man made equipment, machinery and tools this money has been used to buy.
3 of 26
Explain the difference between needs & wants.
Needs are essential - eg. water, air, food & shelter. Wants are what people demand after their needs have been satisfied.
4 of 26
What are the four sectors of industry?
Primary, Secondary, Tertiary & Quarternary.
5 of 26
Describe the primary sector.
Businesses that extract materials from the ground, eg. farming, fishing & coal mining.
6 of 26
Describe the tertiary sector.
Businesses that provide a service, eg. supermarkets & airlines.
7 of 26
What is the main aim of a private sector organisation.
To make a profit.
8 of 26
What is the main aim of a public sector organisation.
To provide services, improve communities and society and to act in the best interests of the general public.
9 of 26
What are objectives?
Targets or goals an organisation has.
10 of 26
Identify five different stakeholders.
Management, Employees, Customers, Government, Local Community, Suppliers
11 of 26
Explain the difference between a merger and a takeover.
Merger is when two businesses of around the same size join together, whereas a takeover is when one larger business takes ownership and control of a smaller one.
12 of 26
Describe the term de-merger.
De-mergers occur when one business splits into two separate organisations.
13 of 26
Identify two political factors that impact on an organisation.
UK, EU & International Law. Government policies .Provision of essential infrastructure, eg. roads & schools. Rates of taxation. Provision of grant funding.
14 of 26
Identify two economic factors that impact on an organisation.
Interetst Rates, Exchange Rates, Levels of Inflation, Levels of unemployment, The business cycle (periods of booms and slumps in the economy.)
15 of 26
Identify five functions of managers in decision making.
Planning, Organising, Commanding, Commanding, Co-ordinating, Controlling, Delegating & Motivating.
16 of 26
Identify three internal factors that impact on decision making.
Quality of info available. Company Policy. Knowledge & Experience of Staff. Willingness to take risks. Urgncy of decision & time available. Resources (financial & human) available. Availability & Quality of Technology. Resistance to change by staff.
17 of 26
What does SWOT stand for?
Strengths, Weaknesses, Opportunities and Threats
18 of 26
Identify two resources required when implementing a decision.
Time, Finance, People, Technology, Information,
19 of 26
What is mean by external factors?
Factors outwith an organisation's control that will impact upon the organisation.
20 of 26
Iddentify two activities carried out by the human resources department.
Recruitment, selection, arranging training, advising on terms & conditions, reviewing pay, creating and upfating policies and procedures, supporting the appraisal process, managing grievance and discipline procedures, maintaining records
21 of 26
Iddentify two activities carried out by the finance department.
Paying bills, paying wages, preparing budgets, preparing final accounts, ratio analysis, preparing info for decision making or stakeholders
22 of 26
What is an organisation chart?
A diagram showing how an organisation is structured.
23 of 26
What is the difference between a wide and a narrow span of control?
A wide span of control will mean that many people report to one person, while a narrow span of control means that very few people report to one person.
24 of 26
Why might a matrix structure be used?
Matrix structures are use to bring people together from various departments to work on a specific project or task.
25 of 26
Suggest two advantages of delayering.
Allows quicker communication, quicker decision making, and can allow the organisation to adapt to changing market conditions when necessary.
26 of 26

Other cards in this set

Card 2


Identify the four factors of production.


Land, Labour, Capital & Enterprise.

Card 3


What is capital?


Preview of the front of card 3

Card 4


Explain the difference between needs & wants.


Preview of the front of card 4

Card 5


What are the four sectors of industry?


Preview of the front of card 5
View more cards


No comments have yet been made

Similar Business Management resources:

See all Business Management resources »See all Understanding Business resources »