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Flashcards in Business framework Deck (31)
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0
Q

What is a service?

A

Something intangible.

1
Q

What is a good?

A

Something tangible.

2
Q

What is the VAT on needs?

A

20%

3
Q

What is at the primary stage?

A

Producing the raw materials.

4
Q

What is at the secondary stage?

A

Manufacturing the good.

5
Q

What is at the tertiary stage?

A

Selling the good.

6
Q

Why does a business exist?

A

A business exists to satisfy wants and needs profitably.

7
Q

What is profit?

A

Profit = revenue - costs

8
Q

What is a marketing plan?

A

A written formal plan/document.

9
Q

What is a marketing objective?

A

Where the business wants to be using strategies and methods.

10
Q

What does SWOT stand for?

A

S - strengths
W - weaknesses
O - opportunities
T - threats

11
Q

What is demographics?

A

Population, characteristics and change

12
Q

What is the land stage?

A

Natural resources.

13
Q

What is the labour stage?

A

Making the good/service.

14
Q

What is the capital stage?

A

Machinery used to produce and distribute.

15
Q

What are the motives for wanting to become an entrepreneur?

A
  • wanting to set up their own business
  • wanting to go into the marketing business
  • wanting to make a financial profit
  • wanting to make a social profit
  • wanting to fill a gap in the market
  • legacy
  • challenging them self
  • following a dream/hobby
16
Q

What are the characteristics of an entrepreneur?

A
  • risk taker
  • ambitious
  • confident
  • passionate
  • committed
  • hard working
  • resilient
17
Q

What are the disadvantages of an entrepreneur?

A
  • loneliness and isolation
  • can’t blame others
  • financial pressure
  • hard work
  • strain in family and social life
  • high stress level
  • needs to be able to multi-task
  • roller coaster of emotions
19
Q

what are the rewards for enterprise?

A
  • profits
  • self-esteem
  • personal development
  • sense of control
20
Q

What is opportunity cost?

A

The cost of missing out on the next best thing.

21
Q

What is a stakeholder?

A

A person who has a certain objective or interest in a business.

22
Q

What is a shareholder?

A

Someone who buy a share in a business (only PLC).

23
Q

What is an internal stakeholder?

A

People who work for the business and are involved daily.

24
Q

What is an external stakeholder?

A

People who aren’t working for the business and aren’t involved day-to-day.

25
Q

List 6 internal stakeholders;

A
  • customers
  • creditors
  • owners/shareholders
  • managers
  • employees
  • suppliers
26
Q

List 7 external stakeholders;

A
  • financial institutions
  • trade associations
  • competitors
  • pressure groups
  • society
  • the Government
  • local resident/community
27
Q

How do you work out gross profit?

A

gross profit = sale of price - cost of sales

28
Q

How do you work out net profit?

A

net profit = gross profit - overhead

29
Q

How do you work out retained profit?

A

profit before tax - dividends

30
Q

What is revenue?

A

Money coming into the business

31
Q

What is companies house?

A

Where you go to register your business.