Business Ownership and Stakeholders
This type of business is owned and run by just one individual who has unlimited liability.
What is a Sole Trader?
This motivational theory places self-actualization at the very top of a pyramid of human needs.
What is Maslow's Hierarchy of Needs?
The specific geographic place where a business decides to set up its offices, shops, or factories.
What is Business Location?
This is the cost of borrowing money or the reward for saving money, set by central banks.
What is an Interest Rate?
The basic financial formula: Total Revenue minus Total Costs.
What is Profit?
This legal structure allows a business to sell shares, but only privately to friends and family, not on the public stock exchange.
What is a Private Limited Company (Ltd)?
This term refers to the internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job.
What is Motivation?
E-commerce, social media advertising, and automated stock control are all examples of this major influence on modern business.
What is Technology?
This term describes the value of one currency when compared to another currency.
What is an Exchange Rate?
This is calculated by multiplying the selling price of an item by the total number of units sold.
What is Total Revenue?
This term describes any individual or group—such as employees, customers, or suppliers—who has an interest in or is affected by a business.
What is a Stakeholder?
Giving an employee a higher position, more responsibility, and usually an increased salary within the company.
What is a Promotion?
A primary factor a retail business must consider when choosing a location to ensure plenty of customers walk through the door.
What is Footfall Customer Proximity ?
If the value of the Pound (£) rises against the Dollar ($), UK exports become more expensive, which is bad news for this type of business.
What is an Exporter?
These are costs that do not change regardless of how many products a business makes or sells, such as rent.
What are Fixed Costs?
This type of organizational structure keeps all major decision-making power at the very top of the business hierarchy.
What is a Centralized Structure?
According to Maslow, these basic survival requirements (like food and shelter) must be met before an employee can care about safety or social needs.
What are Physiological Needs?
This method of selling allows businesses to bypass physical location constraints entirely by trading over the internet.
What is Online Shopping (or E-commerce)?
High interest rates usually cause consumers to do less of this, especially on expensive items like cars or houses.
What is Spending (or Borrowing)?
To find this, you must add your Fixed Costs and your Variable Costs together.
What are Total Costs?
Unlike a sole trader, this business structure involves 2 to 20 people sharing ownership, profits, and responsibilities.
What is a Partnership?
This specific type of reward doesn't involve money; examples include job enrichment, team working, or praise.
What is a Non-Financial Motivator?
This aspect of the marketing mix is heavily influenced by location, as being closer to raw materials can drastically reduce these expenses.
What are Transport/Logistics Costs?
This type of external factor includes things a business cannot control, such as changes in government taxes, inflation, or unemployment rates.
What is an Economic Influence?
his financial metric or objective measures how much money a business brings in over a year, before any costs are taken away.
What is Turnover (or Sales Revenue)?