unit 1

• What is an example of variable costs in a business?

  Purchasing raw materials

  Power (electricity)

  Expenditure on advertising
• What is one of the fixed costs related to transportation?

  Purchasing a vehicle
• What type of costs are salaries classified as?

  Fixed costs
• How do fixed costs differ from variable costs?

  Fixed costs remain constant, variable costs change
• define unincorporated

  a business which is not registered with companies house
• what is market capitalisation

  a current value of a company calculated by:

  share price x number of shares
• examples of unincorporated businesses

  sole traders

  partnerships

  = unlimited liability
• examples of incorporated businesses

  LTD= private limited

  PLC= public limited

  = limited liability
• what are SMART objectives

  specific, measurable, agreed, realistic, time specific
• what can external environmental factors impact

  market conditions, income fates, interest rates
• what does PESTLE stand for

  Political

  Economic

  Social

  Technology

  Legal

  Ethical
• what is a mutal organisation

  a private firm owned by its customers or members
• what is ordinary share capital

  funds raised by a company through the insurance of its common shares to investors
• market factors

  external conditions that influence demand, supply and price
• demographic factors

  social-economic characteristics that companies use to identify their market e.g age, gender etc
• market conditions

  overall state of a particular market at a given time
• two factors that can lead to population change

  birth + death rates

  migration
• 3 things that can affect share price

  company performance

  economic indicators

  market sentiment
• public sector organisations

  set up by the government to provide a service to the public e.g public schools, police
• public sector companies

  NHS, royal mail
• private sectors

  set up by individuals making a business-