AS 1 Business and it's environment 2023 Flashcards

Being responsible for one's actions, decisions, and results, and accepting the consequences, such as a manager being held accountable for the performance and results of their team.

(Added Value) the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.

A financial plan that outlines expected revenue, expenses, and investments over a specific time period, such as a company creating an annual budget to allocate resources and manage cash flow.

“Doing the right thing” basing business decisions on what is morally right

Aims or targets a business sets out to achieve

A document setting out a business's objectives and how it will achieve them

Business Risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.

business, or other organization which is owned and run jointly by its members, who share the profits or benefits.

integration with a business in a different industry

Broad, high-level goals that a company aims to achieve in the long term, often related to growth or profitability, such as a corporation aiming to increase its market share by 20% over the next five years.

businesses who take responsibility for the social and economic impact of their activity

Increasing the worth of a product, service, or organization through improvements or added benefits, such as a company improving its customer service, creating value for customers and increasing loyalty.

Specific, short-term goals set for individual departments within a company to support the corporate objectives, such as the marketing department aiming to increase brand awareness by 15% in the next six months.

None found

Someone who invests capital, takes a risk and starts up and operates a new business venture

Moral principles and values that guide the decision-making and behavior of individuals and organizations, such as a company adopting a code of ethics to ensure fair labor practices and environmental responsibility.

Business expansion taking over or merging with another business )

person or group outside the business impacted by the business activity

Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital.

A business owned and operated by members of the same family, often spanning multiple generations, such as Smith's Bakery, a local business owned and managed by the Smith family since 1950.

Buying the license to use another companies logo and sell their products.

The acquisition of one company by another with the full knowledge and consent of the target company's board of directors.

Integration with firms in the same industry and at same stage of production

The acquiring company tries to take over a target company against the wishes of the target company's management.

Business is a separate legal entity - separation between owners and the company

Business expansion without taking over or merging with another business (organic growth)

Individual or group inside the business impacted by the business activity (owners/shareholders, managers, employees)

An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the intrapreneur has access to the resources and capabilities of an established company.

Two companies share capital and expertise on a project. Share risks and profits.

Owners responsibility for company debts restricted to what they have invested

A merger is an agreement that unites two existing companies into one new company.

A mission statement is a visionary aim for a business of the direction/purpose

A multinational corporation (MNC) is a company that has business operations in at least one country other than its home country. Generally, a multinational company has offices, factories, or other facilities in different countries around the world as well as a centralised headquarters which coordinates global management.

Goods or services we need to survive

the potential benefits a business misses out on when choosing one alternative over another.

Two or more people join to set up a business. Shared decision making, capital invested and risk.

Using natural resources to make raw materials for business

Incorporated business with shares sold to friends and family. Limited liability.

Part of the economy owned and controlled by private individuals

Government owned organisation set up to provide service to the public

Incorporated business with shares sold to general public. Limited liability.

Part of the economy owned and controlled by the government

Business satisfies peoples (consumers) wants

The quaternary sector of the economy is based upon the economic activity that is associated with either the intellectual or knowledge-based economy.

Not enough resources/goods or services to provide for peoples' (consumers) unlimited wants

Manufacturing goods from raw materials

SMART Criteria: (Specific, Measurable, Achievable, Realistic and Relevant, Time-Specific) to guide in the setting of goals and objectives for better results

private enterprise which uses profits to persue environmental or social objectives

A business owned by one person who is responsible for all decisions, capital invested and risk.

People in business focus on what they do best

Strategic alliances are agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

A long-term plan or approach designed to achieve specific goals or objectives in a competitive environment, such as a company adopting a cost-leadership strategy to outperform its competitors on price.

Short-term actions or steps taken to implement a strategy and achieve specific objectives, such as a retailer offering a limited-time promotion to boost sales and gain market share.

when a company buys more than 50% of the shares of another company and becomes the controlling owner of it – often referred to as ‘acquisition’.

Services to consumers and other businesses (B2B)

Business objectives not just based on profit, but also social and environmental objectives

No separation between the company and the owners in law

Owners personal assets may be taken to pay for debts of the company.

Selling price - cost of bought in materials

Forward - forward integration with a business in the same industry but a customer of the existing business.

Good or service people want but isn't essential for survival