Save
Business paper 1
Key terms
Save
Share
Learn
Content
Leaderboard
Learn
Created by
Madison olivia
Visit profile
Cards (29)
Aim
Intention to reach a goal
Business plan
Detailed statement about how the business intends to operate at the
start
of the
business
or during a given period of time.
Chain of command
Line
of hierarchy that shows who is
responsible
from top to bottom
Consumer law
Laws designed to ensure that business makes
products
that are
safe
and of good quality and treat customers fairly
Cost
The money spent by the
business
on
goods
and services
Decentralisation
Where
authority
is spread widely through a
business
Centralisation
Maintaining
control
by keeping authority at
senior
levels of the organisation
Delegation
Allocating
a task to someone who
wouldn’t
usually do it
Directors
People who are elected by
shareholders
to run the business on their
behalf
Variable costs
Costs that change as the business
output
changes
Unlimited liability
When the
owner
is responsible for all debts of the
business
Limited liability
When
Owners
are not responsible for
debts
of the business and is the amount of money they invested in the business
loan
A
fixed
sum of
money
borrowed for a specified period of time at an agreed rate of interests;repaid in instalments
Interest rates
Rate charged for borrowing money over a
period
of
time
What are the two types of sectors
Private
public
What is a
private sector
A business that is
individually owned
and operated too Make
profit
What is a
public sector
A business that is
owned by the government
and usually provides service such as
healthcare
and education
three types of
business
activity
Primary
secondary
tertiary
What is a
primary industry
A
business that extracts the earths natural resources
What is a
secondary industry
A
business that uses raw materials to manufacture goods or construct items
What is a
Tertiary industry
A business that
provides services
to
consumers
or other businesses
What
is a share issue
Long term source of finance hat is only available to
limited
companies
What is the process of conflict between stakeholder objectives is
minimised
but not completely
removed
is called
Conflict management
What does an income statement show
Revenue and expenses
What
is a tall organisational structure
Has many levels of hierarchy but a
narrow
span of control therefore is opportunities for promotion
What is a flat organisational structure
Has a few levels of
hierarchy
and a wide span of
control
What
is a matrix organisational
structure
Structure where teams repirt to multiple leaders
Advantages of a
flat
organizational structure
Disadvantages
of a talk organisational structure
Slow
decision-making, lack of flexibility,
communication
challenges, and higher costs.