GCSE Business unit 1 Flashcards

Goods are tangible items (e.g., phones), and services are intangible actions (e.g., haircuts).

To produce goods and services to satisfy customer needs (essentials for survival) and wants (desired but not necessary).

Extracts raw materials (e.g., farming, mining).

Manufactures and constructs (e.g., car factories, bakeries).

Provides services (e.g., retail, banking, tourism).

Someone who takes the risk to start a business by organising the factors of production: Land, Labour, Capital, and Enterprise.

No legal difference between owner and business. Owners can lose personal assets to pay debts.

One owner with full control and all profits but high pressure and unlimited liability.

2–20 owners sharing workload and capital but potential for conflict.

The business is a separate legal entity. Owners only lose what they invested.

Shares sold privately (often to family/friends); more control than a PLC.

Shares sold on the Stock Exchange; can raise massive capital but risks hostile takeovers.

Survival, profit maximisation, market share, and increasing shareholder value.

Social and ethical goals, personal satisfaction, and excellent customer service.

Anyone with an interest in the business.

Owners, employees, managers.

Customers, suppliers, local community, government, banks.

Different stakeholders may want different things (e.g., employees want higher wages, owners want high profits).

Proximity to market, availability of raw materials, labour supply, competition, and transport links.

A document outlining the business idea, marketing, and financial forecasts. Vital for securing bank loans and reducing risk.

Expanding from within (e.g., opening new stores, launching new products). Slower but lower risk.

Expanding through mergers or takeovers. Faster but high risk and expensive.