front 1 What are the possible objectives of a business? | back 1 Profit, Growth, Survival, Cash flow, Social and ethical |
front 2 What should the measurement of profit include? | back 2 Revenue, turnover, sales, fixed costs, variable costs, total costs |
front 3 What is the relationship between mission and objective? | back 3 A mission statement explains the company's purpose and focus, while objectives outline a path for achieving the mission |
front 4 Why do businesses set objectives? | back 4 Focus and Direction, Performance Measurement, Motivation, Risk Management, Aligning resources for organisation |
front 5 What are the different forms of businesses? | back 5 sole traders, LTDs and PLCs, private sector and public sector organisations, non-profit organisations, social enterprises |
front 6 What are the public and private sectors? | back 6 Public : operated, owned and controlled by government agencies Private : owned, controlled and managed by individuals and entrepreneurs |
front 7 What are non-profit organisations? | back 7 An entity that operates for things other than profit for its shareholders/owners |
front 8 What are social enterprises? | back 8 A business that aims to achieve social objectives whilst also generating profit, often prioritising people and the planet |
front 9 What could a non-profit organisation's aim be? | back 9 Serve the public, address social issues, promote a particular cause |
front 10 Which form of business is the only one to have unlimited liability? | back 10 Sole traders |
front 11 What is market capitalisation (market cap) and what is it used for? | back 11 The total value of a companies outstanding shares of stock and is used to classify companies by size |
front 12 What is ordinary share capital and what does it do? | back 12 The sum of money raised by a corporation from the issuances of its common shares, it represents the equity of ownership and entitles shareholders to voting and share of the profit through dividends |
front 13 What is the role of shareholders? | back 13 Provide capital and influence decisions |
front 14 Why do shareholders invest? | back 14 Potential for capital appreciation, dividends, ownership stake, liquidity, diversification, passive income and hedging inflation |
front 15 What influences share price? | back 15 Inflation, Supply and Demand, fiscal policy, natural disaster, market sentiment, monetary policy, exchange rate and consumer spending |
front 16 why are share price changes significant? | back 16 They reflect the market's perception of a company's performance and the economy's health. |
front 17 How does ownership affect mission and objectives? | back 17 It can influence the choice of business form, decision making, performance and risks taken |
front 18 What factors are includes in the external environment that affect costs and demand? | back 18 Competition, market conditions, incomes, interest rates, demographic factors, environment issues and fair trade |