1.1-1.2
The name given to an individual who takes the financial and personal risks to start a business.
What is an entrepreneur?
Stakeholder group that seeks good value in pricing and product quality
What are customers?
The three 'E's of STEEPLE analysis
What are ethical, economic and environmental?
The purpose of finance for the purchase of non-current assets
What is capital expenditure?
The difference between a budgeted amount, such as a cost, and the actual amount of the cost at the end of the budget period.
What is a variance?
The protection provided to owners of public companies, separating them from the debts incurred by a business
What is limited liability?
The concept of whether a business is required to set objectives that benefit a range of stakeholders, not just shareholders, by implementing ethical objectives.
What is Corporate Social Responsibility (CSR)?
The reasons for and against a strategic decision, each reason weighted for their significance to help support whether the decision
What are driving and restraining forces?
Finance provided by the firm's own surpluses and selling of unused assets, as well as funds from its owners with unlimited liability.
What is an internal source of finance
The number of required components multiplied by the purchase price of one component needed by a firm in its own production.
What is the cost to buy?
Economic sector where business create and share new knowledge
What is the quaternary sector?
Stakeholder group that aims to influence the behaviour of business to be better
What is a pressure group?
Impacts on business , organised in a STEEPLE analysis, including changes in tastes and trends, education levels, demographics, health
What is a social impact on business?
Long-term source of finance, usually provided by a bank, offering money in exchange for an interest rate with the requirement that the total funds be repaid in a given time period. There may be a need for collateral to secure the finance.
What is loan capital?
The difference between the revenue generated by a product and its variable costs. This can be broken down to the unit level by calculating the price - average variable cost.
What is contribution?
A business structure that has 1-50 owners, usually family and friends and provides the owners limited liability
What is a privately held company?
A short-term, specific GOAL of a business, easily measurable and relevant to achieving the medium and long-term goals of the organisation
What are tactical objectives?
Impacts on business , organised in a STEEPLE analysis, including changes in regulations, requirements and legislation of a government.
What is a legal impact on business?
A business cost, identified by the finance department, that cannot be allocated to an individual product produced by the firm.
What is an indirect cost (overhead cost)?
The allocation of financial resources to a part of an organisation that is only responsible for expenses, not revenues. This includes for budgeting and for contribution analysis
What is a cost centre?
Social enterprise business structure whereby members have equal ownership and voting rights
What is a cooperative?
A long term aspirational goal of a business, a description of absolute success, often difficult to attain or measure
What is a vision (statement)?
The subjectivity in applying weightings to the driving and restraining forces
What is a limitation of Force Field Analysis?
Accessing small amounts of money from a large group of potential investors using online platforms such as Kickstarter. If the total funding is secured, it is usually not repaid, although investors may gain other tangible and intangible benefits.
What is crowdfunding?
The allocation of indirect costs/overheads to different products or departments of a firm using a relevant quantitative measurements, such as floor space to allocate rent expenses.
What is absorption costing?