IB Business unit 1
What is a franchises?
A method of business ownership backed by established brand name
Who are stakeholders?
Anyone who has an intrest in the business. Customers, managers, employees, owners etc.
What is the secondary objective?
Day-to-day objectives
Sole traders, 3 advantages
Easy to set up, flexibility, ability to offer personal service.
What are internal stakeholders?
Employees, sharholders, mangers, ect.
5 reasons to start a business?
Entrepreneurial, work for yourself, control, finace, the dream.
What is quality?
High quality services that do not cut corners.
How does business meet the costumers wants and needs?
Its buys and utilizes inputs (factors of production). Land, labour, capital, and entrepreneurship
What are strategies?
Long term courses of action which enable you to do your objectives
What is a sole trader?
Owned and controlled by one person, but can employ other staff.
What are Partnerships
Owned and financed by two or more people
What is PEST?
Political, economical, sociologiacal, and tech. analysis.
What are merit goods?
Services provided by business into the market at a level below optimum, usually because profits are lower. Education and vaccinations.
What are objectives?
Set out what needs to be done in order to achieve the goal.
What are tactics?
Shorter term ways to put the strategy into action.
What are goals?
Specific things that must be achieved to fulfill the mission.
What are external stakeholders?
Suppliers, customers, competitors, ect.
What is the mission?
The direction the company will take.
What is the vision?
The dream... what the owner entreprenuer carries forward.
What is access?
available to all regardless of location or income.
What is equity?
available to anyone whatever their background. stautus, income race, religion, ect.
What is the private sector?
businesses owned and controlled by private individuals or groups.
What are social responsibilities?
duties that business has towards the people who are affected by its activities
Partnerships, 3 advantages
greater access to capital, shared responsibilty, easy to set up.
What is the quaternary sector?
intellectual activities. libraries, government, research,
What is the primary objective?
longer-term objectives.
What is the secondary sector?
manufactures finished goods. Automobile production, energy utilities.
What are the business functions?
marketing, production, accounting, human resources, objectives, and handling external influences.
What is business?
meets the needs and wants of stakeholders by producing the goods and services the people need and want.
What are ethical objectives?
moral guidelines for decision making
What is the public sector?
organisations controlled by the government. Health and education services, defense, law and order.
What is a private limited company
owned by between 1 and 50 shareholders
What is a public limited company
owned by minimum of 2 but no maximum numer of shareholders
What are Co-operatives
ownership, finance and control in hands of members
What is the primary sector?
production of raw material and commodity foods. mining forestry, farming, etc.
What is the tertiary sector?
service industry. transportation and distribution, entertainment, movies, banking, healthcare.
What is affordability?
services that are offered at prices that are cheaper.
What are the smart goals
specific, measurable, achievable, realistic, time-bound
Partnerships, 3 disadvantages
unlimited liability, potential for conflict, and decisions of one partner binding on the rest.
Sole traders, 3 disadvantages.
unlimited liability, potential for long hours, and pressure for being solely responsible.
