business

    Subdecks (23)

    Cards (449)

    • Economies of scale
      When the cost per unit of a product falls as a business expands
    • Market share
      The portion of a business's sales within its market
    • Internal diversification
      Where a business grows by selling more of its own products
    • External growth
      Where a business grows by joining with another business
    • Turnover
      Measured by the price, multiplied by the number of units sold
    • Market Capitalisation
      Measures the business by the value of its shares
    • Franchising
      Paying a franchise owner to open an established business
    • Franchisor
      Sells the franchise to the franchisee
    • Franchisee
      Buys the franchise from the franchisor
    • E-commerce
      Involves trading online
    • Outsourcing
      When a business uses another business to produce some or all of its products or to provide a service
    • Merger
      When two or more businesses join together to form a new business
    • Takeover/acquisition
      When one business gains control of another
    • Business environment
      All of the outside factors that effect a business such as economic changes, changes in law etc.
    • Competitive environment
      How businesses compete with others to attract and keep customers
    • Business Sectors
      • Primary Sector
      • Secondary Sector
      • Tertiary Sector
    • Primary Sector
      The first stage of production such as fishing, farming or all exploration
    • Secondary Sector
      Second stage using the primary resources and turning them into products - manufacturing
    • Tertiary Sector
      Organisations that provide the service such as estate agent
    • Private Sector
      Businesses that are owned by private individuals to make a profit
    • Public Sector
      Organisations Owned by the government such as the NHS
    • Horizontal Integration
      This is where a business joins with another at the same stage of the production process.
    • Vertical Integration

      This is where a business joins with another at a different stage of the same production process.
    • Backward Vertical Integration
      This is where the business joins with its suppliers.
    • Forward Vertical Integration

      This is where a business joins with its distributors.
    • Conglomerate Integration
      This is where a business joins with another in a different type of production process.
    • PLC
      A public limited company
    • LTD
      A private limited company
    • Shareholders
      People who have bought shares in a limited company
    • Dividend
      Payment made to shareholders
    • Limited Liability
      A shareholder's responsibility for the debts of a business is limited to the amount he/she has invested in the purchase of shares
    • Itds
      Tend to sell shares to friends and family
    • plcs
      Sell shares to the general public on the stock exchange
    • why make a business plan?
      -It will be needed by banks before lending money
      -It shows how the business will be run
      -It shows the business has been researched and thought through
      -It shows opportunities and problems
    • Sole Trader
      Businesses owned by one person who has unlimited liability. Other people can be employed but there is only one owner.
    • Advantages of being a Sole Trader
      • Profit can keep all profit/ no need to share
      • Making decisions→without consulting others/will be speedy
      • Own boss free to choose / any example
      • Independence → can work at own pace
      • Easy to set up→ few formalities
      • cheaper to set up
      • Have a job
    • Disadvantages of being a Sole Trader
      • Unlimited liability responsible for debts of the business
      • More responsibility → relies heavily on their own ability to make decisions → may work long hours and have limited holidays, as there is no one to cover them
      • Limited sources of resources
    • Unlimited Liability
      Means that the owners of a business are responsible for all of the debts of a business. Personal belongings may need to be given up to pay the debts of the business.
    • Public Sector
      Organisations owned and controlled by the government
    • Aims & Objectives of Public Sector
      • Provide a service
      • Improve accessibility to others
      • Avoid wasteful duplication of resources
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