business gcse edexcel

• Supplier


  A business which sells products to another business.
• Stakeholders


  Individuals or groups of individuals who affect or are affected by a business
• Give 8 examples of stakeholders

  1. Government2. Owner3. Employees4. Financiers5. Community6. Costumers7. Managers8. Suppliers
• Consumer Goods


  Goods and services that are produced for consumers
• Producer Goods


  Goods or products sold from one business to another
• Needs


  Essentials needed for human survivial
• Wants


  Luxury items that are desired but not required
• What are objectives that businesses have?

  1. Survival2. Image3. Growth4. Profit5. Market Share
• What are SMART objectives?


  SpecificMeasurableAchievableRealisticTimely
• Entrepreneurs


  Individuals that takes risks on new business ideas
• What are some of the qualities or skills that a successful entrepreneur must have?

  1. Risk taker2. Organised3. Leader4. Confident5. Brave6. Positive7. Smart8. Determined9. Innovative10. Responsible
• Sole Trader


  A business owned by one person
• Three advantages of being a Sole Trader?

  1. All profits are kept2. Full control of business3. Can apply for government help or support
• Three disadvantages of being a Sole Trader?

  1. Unlimited liability2. Unincorporated3. No continuity
• Partnerships


  Business owned by 2 - 20 people and are of two forms: limited liability partnerships and unlimited liability partnerships
• Three advantages of partnerships

  1. More capital2. Shared workload3. No legal formalities4. Partners can specialise in different fields or departments
• Three disadvantages of partnerships

  1. Conflicts and issues may arise2. Unlimited liability3. Profits shared4. Tend to be small
• Deed of partnership


  A document containing an agreement between all partners that details the rights and obligations of each partner participating in the venture
• Why are they used?

  They are used to sort out which department or area each partner specifies in
• Stock Market


  Where people can buy and sell shares of public limited companies
• Ltd


  Private Limited Company
• Plc


  Public Limited Company
• Retained profits


  The percentage of profits kept or saved by the company to invest or expand
• Certificate of incorporation


  Includes a statement of the authorised capital
• Dividend


  The money shareholders receive from the company's profits
• Private Limited Company

  • Minimum of 2 shareholdersRun by a board of directorsExpensive
• Advantages of Ltds

  1. Limited liability2. More capital raised3. Control of shareholders4. Continuity
• Disadvantage of Ltds

  1. Financial information has to be made public2. Costs money and time to set up3. Profits shared between more shareholders4. Cannot raise huge amounts of money like Plcs
• Advantages of Plcs

  1. Large amounts of capital raised2. Shareholders has limited liability4. Incorporated5. Continuity6. Can exploit economies of scale7. Can dominate market8. Very high media profile9. More status10. Shares are easily bought and sold
• Disadvantages of Plcs

  1. Risk of takeover2. Setting up is very expensive3. Can lose control of company as a result of outsiders4. Managers may take control rather than owners5. Have to publish full accounts to public
• Public limited Company

  1. Most likely to be in media2. At risk of takeover3. Banks are more likely to lend money4. Must have a share capital in excess of £50,0005. Has to publish full accounts and accessible to members of public6. Minimum of 7 shareholders7. Shares sold in stock market8. Run by board of directors