Business objectives
What is the difference between 'wants' and 'needs'?
Needs are necessities for human survival, wants are desires of goods and services.
What is a 'partnership'?
Business owned by between 2 to 20 people
What is tertiary sector?
Production of services in the economy
What is 'globalisation'?
Growing integration of the world's economies
What are 'economies of scale'?
Decrease in average costs as output increases
What is 'public sector'?
Organisations owned by the government
What is the difference between Ltd and PLC?
Ltd cannot sell shares to the public, PLC - can
What is 'de-industrialisation'?
Decline in manufacturing
Rapidly growing economies. Ex.: Brazil
What are 'infant industries'?
New industries that are yet to be established
What are 'dividends'?
Who is a 'franchisee'?
A person who gets permission to trade and use a brand's name
What does proximity to the market and labour refer to?
Location of a business close to its customers and workers
What opportunities does globalisation provide to businesses?
Access to larger markets, lower costs
What is 'quota'? Provide an example.
Physical limit on the quantity of imports allowed into a country
What do SMART objectives stand for?
S - specific
M - measurable
A - achievable
R - realistic
T - time specific
What is a 'limited partnership'?
Type of partnership where some partners controbute capital and enjoy the share but do not take part in the running of the business
What are brownfield sites?
Areas of land that were once used for urban development.
State three threats of globalisation to businesses.
Increased competition, international takeovers, increased risk of external shocks.
State two disadvantages of operating as a sole trader.
Unlimited liability and limited capacity to raise finance.
State two factors that may lead to changes in business objectives.
Market conditions/technology
What is a "consumer cooperative"?
Cooperative that is owned by its customers
What are assisted areas?
Areas that are designated by a government as having economic problems and are targeted to receive support in a variety of forms
What is 'hostile takeover'?
Takeover that the company being taken over does not want or agree to
What is the difference between incorporated and unincorporated businesses?
Incorporated = separate legal entity, limited liability.
Unincorporated = same legal identity as owner, unlimited liability