Unit 1

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  • Created by: ambh0yle
  • Created on: 16-02-14 15:29
what does SMART stand for?
specific, measurable, attainable, realistic, time restricted
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products that are produced for consumers are called what?
Consumer good
2 of 50
What does producer good mean?
products sold by one business to another
3 of 50
What is the main objective called?
survival
4 of 50
what does land/primary sector in 'factors of production' stand for?
this is all the natural sources e.g. cotton, water, trees, oil, coal.
5 of 50
what does labour/secondary sector in 'factors of production' stand for?
the skills and work effort of humans resources e.g. teacher, builder
6 of 50
what does capital/tertiary sector in 'factors of production' stand for?
these are all the man-made items used in production process to make other things, e.g. factories, machinery and transport.
7 of 50
what is a limited company?
people buy shares in this type of business, all accounts must be published, meaning anyone can see them.
8 of 50
what does sole proprietorship/sole trader mean?
it has one owner but can employ any number.
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what is an advantage of sole trader?
it's simple, there are no legal formalities.
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what is a disadvantage?
if the business gets into debt the owner is responsible for paying all the debts.
11 of 50
a binding legal document which states the formal rights of partnership is called what?
The deed of partnership
12 of 50
what is an incorporated business?
when the business has separate legal identity from that of its owners.
13 of 50
what is the term for a business where there is no legal difference between the owner and the business?
uncorporated business
14 of 50
what is a limited liability?
when a business owner is liable for the original amount of money invested into the company.
15 of 50
what is an unlimited liability?
when the owner of the business is personally liable for all the business debts.
16 of 50
what is a sleeping partner?
a partner who does not play an active role in the business
17 of 50
what is the term for trade between barriers?
free trade
18 of 50
what is protectionism?
a approach used by government to protect domestic producers.
19 of 50
a physical limit on the quantity of imports allowed into a country is called?
a quota
20 of 50
what is a subsidy?
financial support given to a domestic producer to help compete with overseas firms.
21 of 50
what is a tarriff?
a tax on imports to make them for expensive.
22 of 50
Measures designed to restrict trade are called?
trade barriers
23 of 50
what is the point of a business objective?
gives them a target.
24 of 50
what is a mission statement?
purpose of a business providing a plan for the future.
25 of 50
what is a franchise?
different businesses offering identical products under the same brand name.
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what is a franchisor?
a successful business offering identical products under the same brand name
27 of 50
a person that purchases the franchise off the franchisor is called?
franchisee
28 of 50
a business owned by how many makes it a partnership?
between 2-20.
29 of 50
what happens to a business in recovery?
production rises / opportunity to increase prices / new businesses start
30 of 50
what happens to businesses in a boom?
inflation rises/ interest rates rise/ wages rise
31 of 50
what happens to businesses in a recession?
demand is low/ many firms close/ workers are laid off
32 of 50
what happens to businesses in slump?
high unemployment/ firms lower prices/ factories are closed.
33 of 50
if the pound rises, can we buy more or less foreign currency?
more, we say the pound is strong.
34 of 50
if the pound is strong are exports cheap?
no, exports are more expensive.
35 of 50
if the pound is strong are imports cheap?
yes.
36 of 50
what is the equation for revenue?
price x quantity
37 of 50
what is the equation for variable costs?
variable cost/unit x quantity
38 of 50
what is the equation for total costs?
fixed cost + variable cost
39 of 50
what is the equation for profit?
revenue - total costs
40 of 50
what is the equation for gross profit?
sales - cost of goods sold
41 of 50
what is the equation for net profit?
gross profit - expenses
42 of 50
what is the equation for net cash flow?
cash in - cash out
43 of 50
what is the equation for cash at bank end?
cash at bank start + net cash flow
44 of 50
what is the equation for margin of safety?
number of sales - breakeven point.
45 of 50
what are assests?
possessions by a business. Businesses use it to make products or provide services.
46 of 50
what are liabilities?
the debts of the business which provides a source of funds.
47 of 50
debts that have to be paid within a year are called?
current liabilities
48 of 50
what is the advantage of a budget?
reduce fraud/planning/efficiency
49 of 50
what is the disadvantage of budgets?
setting unrealistic targets(demotivation)/inflexible targets can hinder opportunities.
50 of 50

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Card 2

Front

products that are produced for consumers are called what?

Back

Consumer good

Card 3

Front

What does producer good mean?

Back

Preview of the front of card 3

Card 4

Front

What is the main objective called?

Back

Preview of the front of card 4

Card 5

Front

what does land/primary sector in 'factors of production' stand for?

Back

Preview of the front of card 5
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