Business (9609) AS Level - Unit 1 Flashcards

They are measurable targets set by the business, such as sales or profits that have to be achieved within a given time period.

They are the inputs used to produce goods and services; namely land, labour, capital and enterprise.

It involves converting inputs into outputs, which means converting the raw materials into goods and services. E.g. Taking wood from the trees and converting it to furniture.

It is the first stage of production and includes extracting or growing natural resources which are then used by other firms. Farming, mining and fishing are all part of it.

Firms that manufacture goods by processing the natural resources. This includes factories manufacturing computers, brewing beverages, baking, clothes-making and construction.

Firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications. It also includes selling the goods to the final consumer such as shops.

It is a subset of the tertiary sector which includes firms that are involved in the research and development process and are knowledge based. Universities, School and Technology based companies are a part of it.

It is the difference between the selling price of the product and cost of producing the product.

It is the process of increasing the difference between the selling price of the product and the cost of producing the product. This is done either by increasing the selling price or decreasing the cost of production.

It is a name, design, logo, symbol that makes a product recognisable and distinguishes it from the competitors in the eyes of the customer.

They are the forces of supply and demand which determine the price of a product and the quantity bought and sold in a market.

It refers to the limited resources available in comparison to the unlimited wants of consumers.

It measures the benefit lost (forgone) by not consuming or producing the next best alternative. Next best alternative sacrificed (forgone).

It is the risk taking ability to start a new business and take important decisions. It is also the skill needed to make a new idea work.

They are individuals who take the risk to create or start a new business or project.

They are people within an established business who think and act like entrepreneurs. They have all the skills and knowledge of an entrepreneur but they don’t have the ability to take risks.

It is a written document that provides the details of the business objectives that a firm is expecting to achieve in the near future. This document also includes product details, marketing plan, industrial research, financial forecast and other important budgeted information.

occurs when a government takes ownership of a business from the private sector into the public sector.

occurs when a government transfers ownership of a business from the public sector to the private sector.

are goods or services, such as education and health, whose benefits individuals may not fully appreciate. These are goods and services that benefit the society hence it has substantial external benefits.

are goods or services such as cigarettes and alcohol, which harms the society and the individuals do not understand the harm fully. These are goods and services that harm the society hence it has substantial external costs.

occurs when an individual or groups of individuals are not personally responsible for all the actions of their business. Limited companies have limited liability where shareholders are not personally liable for the company’s loans and their liability is limited to their investment in the company.

occurs when an individual or groups of individuals are personally responsible for all the actions of their business. With sole traders, there is no distinction in law between the individuals and the business, and so they could lose their personal assets if the business has financial problems.

is a business organisation which has its own legal identity and which has limited liability.

are persons or organisations that own a part of a company.

occurs when a franchisor sells the rights to use or sell their products to a franchisee.

is a small segment of a market.

is a target that is measurable and has a given timescale.

measures the output per time period of an employee.

is a target set for the business as a whole such as profit maximisation and increasing shareholder value.

of a business measures its sales as a percentage of the total market sales.

is the movement of cash into and out of a business over a time period.

are moral principles that can shape the way a business behaves.

is a philosophy under which businesses consider the interests of all groups in society as a central part of their decision-making.

It is a statement that sets out the overall purpose of a business and what a business stands for.

is a long-term goal that determines the objectives that an organisation sets itself.

is the long-term plan to achieve the objective of a business.

are the short-term actions needed to implement the strategy.

is a goal pursued by a business, such as achieving a particular market share or rate of growth of sales.

are financial plans setting out a business’ future revenues and expenditure.

is behaviour that is thought to be morally correct and not necessarily the most profitable.

are groups or individuals who have an interest in a business.

is the power or ability to carry through a task or action.

are individuals and groups within a business; for example, employees.

are groups outside a business; for example, people who live near to the business’ premises.

are money that is paid out of profits to shareholders. It is a reward to the owners of the business.