Flashcards
CSEC CXC POB
Cards in this deck (161)
- 1What is Enterprise?Enterprise refers to a business and the activities it practices which usually involve some level of risk
- 2What is Entrepreneurship?Entrepreneurship is the practice of innovating and involves taking risks in hope of creating wealth
- 3What is Barter?barter is the exchange of goods and services for other goods and services
- 4What is a commodity?A commodity is an item that is traded (ie. a good)
- 5What is Capital?Money and resources that are used to start a business
- 6What is Labour?The physical or mental work of a person
- 7What is specialisation?Specialization is the division of a task into specific parts.
- 8What is Profit?Profit is the remaining money after all costs have been deducted
- 9What is Loss?This is when the costs and expenses of a business are greater than the revenue of a business
- 10What is Trade?The buying and selling of goods and services in order to make a profit
- 11What is an organisation?A group of persons using resources to carry out specific activities to achieve a goal
- 12What is a producer?A business/individual that makes goods/services
- 13What is a consumer?A person who buys goods and services to satisfy wants and needs
- 14What is exchange?To give one thing and receive another
- 15What are goods?Tangible items that are made to be sold
- 16What is service?Intangible work done for a benefit
- 17What is a market?A situation where buyers and sellers meet to exchange goods and services
- 18What is an economy?An economy is a place where resources are managed to bring benefits to the society
- 19What is a bill of exchange?This is an invoice sent to a debtor to pay for goods bought overseas on credit. It is an order in writing from an exporter to an importer requiring payments of a certain sum of money at a fixed future date.
- 20What is a credit card?A credit card allows the card holder to make payments by simply presenting the card to the seller. A credit card facility is actually a loan given to a customer and thus it is repaid at an interest.
- 21What is Electronic transfer?This is a system used to transfer funds electronically rather than paper-based payment methods. Examples include credit and debit card transactions
- 22What is Tele-Banking?Tele-Banking is receiving banking services over the telephone
- 23What is E-commerceElectronic commerce (e-commerce) is the buying and selling of goods and service using the internet.
- 24What are five reasons to establish a business?Financial independence, being your own
boss, creation of jobs, self motivation and using your skills for you - 25Describe a Sole-Trader businessSector: Private. One owner, unlimited liability, and trade names must be registered.
- 26Describe a partnership BusinessSector: Private. 2-20 partners, capital consists of partner's savings and partnership deed is drawn up.
- 27Describe private companies2-50 members, limited liability, continuity and more capital. Formation: The company must produce the following documents: -The Memorandum of Association
-The Articles of Association
-Statutory Declaration
-Certificate of Incorporation
-Certificate of Trading - 28Describe public companies7 or more members. Formation: -The Memorandum of Association
-The Articles of Association
-Statutory Declaration
-Certificate of Incorporation
-Certificate of Trading
-Prospectus - 29What is a co-operative?Sector: Public. No min/max shareholders. Formation: Formed by groups with similar interests and/or objectives
- 30Describe in full all documents needed to form a company.Memorandum of Association- this defines the relationship of the company with its shareholders
The Articles of Association- this contains the purpose of the company and the responsibilities of its members
Statutory Declaration- a statement a person swears to be true in the presence of an official witness
Certificate of Incorporation- a license to form a corporation
Certificate of Trading- a document granting permission to start business
Prospectus(for public companies only)- this is a document inviting the public to buy shares - 31What is a multi-national?A multi-national is an international organisation which is run from the main centre or headquarters. It is usually formed by franchises
- 32What is a franchise?A franchise is an agreement between the franchisee and the parent company allowing the franchisee to sell its products
- 33What is a conglomerate?A group of unrelated companies under the same management
- 34What is a nationalized industry?These are firms that were privately owned but are now owned by the government
- 35What is a traditional economy?An outdated system that provided for basic necessities. Barter was the main system of exchange
- 36What is one disadvantage and one advantage of a traditional economic systemSustainable economy but there were low living standards
- 37What is a planned economyAn economy where the government is in charge with little or no input from society
- 38What is one disadvantage and one advantage of a planned economyEmphasis on quality of life but no freedom of choice
- 39What is a free market economy?A system where the customer drives the economy with little government input
- 40What are two disadvantage and two advantages of a free market economy?Freedom of choice and quality of goods but pollution and inequalities of wealth
- 41What is a mixed economy?A system where both the government and society make economic decisions to answer the three basic economic questions
- 42What is one disadvantage and one advantage of a mixed economy?A variety of goods but heavy taxes
- 43Who are the four stakeholders (persons who the business relies on) in business?Owners/Employers, Employees, Customers and the Government
- 44What is the role of the Owner/employer in business?Ensure that a profit is made and high-quality goods are produced, efficient management
- 45What is the role of the Employee in business?To Complete tasks properly
- 46What is the role of the customer in business?Provide Feedback
- 47What is the role of the Government in business?To protect customers and enforce regulations
- 48What are four functions of business?To produce goods, provide employment, make a profit and contribute to economic growth
- 49What are the five roles of a business in a community?Economic (produce goods and stimulate economic growth), Financial (pay fair wages), Social (develop culture and society), Political (ensure laws are being observed) and ethical (good business ethics)
- 50What are the four functional areas of a business?Production- the process by which raw materials are converted into finished goods and services
Marketing- the profitable anticipation and satisfaction of the wants of the customer
Finance- this area records the accounts of the business and carries out all monetary transactions
Personnel- this area deals with the employee's welfare and interacts with workers - 51What are the seven functions of management?Planning- deciding how the firm achieves goals, Organising-arranging resources into departments, directing- give instructions for tasks, controlling- ensure that everything goes according to plan, coordinating- ensuring all departments work together, delegating-issuing tasks and motivating- encouraging workers
- 52What are the responsibilities of management to stakeholders in a business?To owners- ensure efficiency
To customers- ensure high quality of products
To employees- fair wages and good working conditions
To society- reduce harmful waste
To government- adhere to laws and legislations - 53What are are four characteristics of a good leader?Integrity, Good communication skills, intelligence, devotion and committed.
- 54Describe the four leadership stylesDemocratic- everyone inputs, participation is encouraged and decisions are made by consensus
Autocratic- makes all decisions, delegates instructions and ignores subordinates
Laissez-Faire- staff fully in charge, leader does no work at all and procrastinates
Participative- subordinates make work-related decisions, there is teamwork and consults workers - 55What are two advantages of an Autocratic leadership style?Makes quick decisions and is most efficient
- 56What are two disadvantages of an Autocratic leadership style?Demotivated workers, discourages commitment
- 57What are two advantages of a democratic leadership style?High motivation, subordinates have expert powers
- 58What are two disadvantages of a Democratic leadership style?Authority of worker is undermined, long decision making
- 59What are two advantages of a Laissez-Faire leadership style?Workers feel empowered, workers feel motivated
- 60What are two disadvantages of a Laissez-Faire leadership style?Lack of communication, Discourages commitment
- 61What are three advantages of a Participative Leadership style?Better decision making, less stress and more acceptance, motivated workers
- 62What are three disadvantages of a participative leadership style?Loss of power, time-consuming and subordinates make errors
- 63What are three internal sources of conflict?Competition among employees, breakdown in communication and unsuitable leadership style for employees
- 64What can an employer do to solve conflict in the workplace?They can lock-out employees, dismiss workers taking industrial action or use scab labour
- 65What can an employee do to solve conflict in the workplace?picket, strike, do only what is required in their job description or go slow
- 66Give six ways in which you can establish good employer to employee relationsMaintain good communication with workers, establish grievance procedures, practice good leadership, seek to motivate, enrich and enlarge jobs and improve working conditions
- 67What are three methods of solving conflict?mediation- bringing in a third party to suggest solutions
conciliation- a supervisor that ensures the parties reach to an agreement
Arbitration- a third party is asked to give the solution and the two groups accept - 68What is teamwork?A group of two or more people communicating and coordinating their work to complete a task
- 69What are three advantages of teamwork?Pooling of resources, better decision making, and workload shared
- 70What are three disadvantages of teamwork?There is conflict, free loaders and time consuming
- 71What is a Management Information System?MIS helps management make important and timely decisions by readily proving the relevant information previously inputted
- 72What are two advantages and disadvantages of a MISReduces the need for manual labour and in turn, saves money by helping management make better decisions and can provide information at any time.
Setting up the system can be costly, staff will have to be trained and small firms may not be able to set up the system - 73What are the five personal needs satisfied through employment?Basic needs- food, drink and good working conditions
Safety Needs,
Social needs- being part of a team
Self-Esteem- recognition of achievement
Self-fulfilment- personal ambition - 74What are the seven characteristics of an Entrepreneur?They must be: creative, innovative, persistent, goal-oriented, flexible, persevering and be able to take calculated risks
- 75Describe the six steps to establish a business.1.Conceptualisation- thinking of a business idea
2.Research- scoping the demand for the product
3.Identification of resources
4.Creation of a business plan- this will ensure that a business if profitable
5.Acquisition of funds
6.Operation of a business- who and how a business is run - 76What is the role of the legal and research and development departments in the operation of a business?legal- deals with legal problems that may arise in the business
R & D- involves researching ways to improve the business' current products and production process and innovating new products - 77What is primary research?Primary research is information that doesn't originally exit
- 78What is secondary research?This is information that already exists
- 79What are three advantages and disadvantages of a Sole Trader BusinessEasy to form, Profits are yours and personal service is provided as the structure is simple.
Limited finance, unlimited liability and lack of spare time - 80What are three advantages and two disadvantages of a Partnership?Workload is shared, specialization is possible and the business continues
Decision making is long, profits are shared equally in the absence of a partnership deed and so there is no motivation - 81What are three advantages and two disadvantages of private limited companiesThere is limited liability, continuity and more capital
There are a lot of legal procedures and there is a limit on the number of members - 82What are three advantages and one disadvantages of a Public Limited CompanyLimited liability, continuity and more capital
Lengthy legal procedures - 83What are three sources of capital?Savings, loans and shares
- 84What is Collateral?This is money or property used as assurance that a loan will be repayed
- 85What are four examples of collateral?property, stocks (shares in a company), money and motor vehicles
- 86What are three examples of primary research for a business plan?Observation, test marketing and postal surveys
- 87What are three reasons why business plans are important?Gives direction, allows comparison of set goals to accomplished goals and helps avoid waste and mistakes
- 88What is a feasibility study?An analysis of the viability of a business idea
- 89What are four aspects a feasibility study focuses on?Demand, target market, profitability and competition
- 90What is an executive summary?The executive summary gives a concise but clear picture of the main points of the business plan
- 91What are short term, medium term and long term plans?Short Term- day to day plans
Medium- department-level plans that can last over one year
Long Term- major decisions and long-range plans for the business - 92What are three ethical and legal issues in the operations of the business?Advertising- misleading advertisement
Taxation- using unethical means to avoid taxation
Environmental- Pollution - 93What are the consequences of unethical and illegal business practices?Misleading advertisement- decreased customer loyalty
Withholding tax- cheating the government of revenue for the country
Unethical disposal of waste- pollution
Money laundering- distortions in the national economy - 94What is a contract?A contract is a legally binding agreement between individuals
- 95Explain five factors that make a contract validCapacity of parties(parties should be able to understand the contract), Legality (contract must abide by the law), Genuineness of consent (parties must enter the contract by free will) acceptance (agreement to accept the terms and conditions of the offer) and Consideration- this is what is given by one party for the action of another party
- 96What is the difference between simple contracts and specialty contractsSimple contracts- this is a written, verbal or implied agreement that must have all factors that make a contract valid
Specialty contracts- this requires a deed that is signed and delivered - 97What is the difference between offer and invitation to treat?Offer- this is when the offerer presents a contract which he is bound to if someone accepts it
Invitation to Treat- this is when an offerer invites someone to make an offer to form a contract - 98When is a contract void?A contract is void when it has no legality or does not meet key validity factors
- 99What are three ways in which a discharge of contract may occur?Performance (Contract is completed), Breach (failed to perform an obligation), Frustration (impossible to complete the contract) and agreement (agreement to discharge contract)
- 100What are three ways in which a contract may be terminated?Legislation (contract is illegal), breach of contract (failed to complete), impossibility of performance (same as frustration) and completion
- 101What is a letter of enquiry?A document used by a potential client to request information from a prospective supplier
- 102What is a Catalogue?A document that gives details about products available for sale
- 103What is the requisition?A document used to control the flow of stocks in the organisation
- 104What is a tender/bid?it outlines the requirements and specifications of tendering for a project
- 105What is The Purchase Order?A document which describes the good to be purchased, the quantity and the price of the items
- 106What is an advice note?The seller sends an advice note to the purchaser to inform them of the goods to be sent and any conditions for receipt
- 107What is a delivery note?A document used in transporting goods to the purchaser. The buyer checks to see if the delivered items match the listed items on the note
- 108What is a destination sheet?A document used by the seller that outlines the destination of goods for delivery
- 109What is a goods received note?A document that confirms receipt of goods and whether the items are in good or damaged conditions
- 110What is a stock card?Document that provides up to date information on goods received
- 111What is a Sales invoice?A document that outlines goods purchased and sent to buyer by the seller
- 112What is the pro forma invoiceAn invoice sent under certain circumstances
- 113What is a debit noteA document sent to purchaser when he is undercharged by the seller
- 114What is a credit note?A document issued to purchaser when he has been overcharged by the seller
- 115What is a statement of account?A summary of a customer's transaction when goods are purchased on credit
- 116What is the difference between insurance and assurance?Insurance is compensation for a risk that may happen while assurance is compensation for a risk that is bound to happen
- 117What is the import licence?A permit that specifies the good to be imported and the quantity that can be imported
- 118What is a Bill of lading?A document that is used in the transportation of goods via ship
- 119What is a certificate of origin?A document that shows the country that manufactured a product
- 120What is an airway bill?A document used to transport goods by air
- 121What is a money order?A method of payment sold by banks to persons who wish to buy goods overseas
- 122What is pooling of risks?When a large number of insurance companies band together to prevent extensive loss when insuring risks such as natural disasters
- 123What is the natural resource produced by Trinidad, Guyana, Jamaica and Barbados?Crude Oil-Trinidad
Clay-Barbados
Bauxite- Jamaica and Barbados
Limestone- Jaimaica
Lumber and timber- Guyana - 124What is the difference between production and productivity?Production is the act of creating and making goods and services while productivity is the efficiency and effectiveness of how well an organisation uses all its resources
- 125Why is productivity important?Productivity is important because a business needs to utilize all its resources to be profitable. It involves Quality, quantity and time spent to produce output
- 126What are three effects of external migration on the labour force?Brain drain and production is negatively affected(economic growth).
Caribbean countries gain foreign currency due to family in foreign countries sending money back home - 127What are the effects of internal migration on the labour force?loss of qualified person in one community and a decrease in the labour force in that community
- 128What is Fixed Capital?This is money used to fund fixed assets
- 129What is working capital?This is capital used in the day to day operations of the business
- 130What is Venture Capital?This is risk capital invested in a new or restructuring business
- 131What is a domestic level of production?This is production at more than a survival level and is sufficient for a country
- 132What is a surplus or export level of production?This is production that satisfies the country and is enough to export and earn foreign exchange
- 133What are three characteristics of a cottage industry?simple tools, equipment, machinery and small amounts of financial capital are used, profits are usually reinvested and labor supply is a minimum amount of workers
- 134What are three benefits of backward linkages?Lower prices of raw materials, stronger relationships between organisations and a reliable supply of raw materials
- 135What are three benefits of forward linkages?There is an established outlet to sell their products, there is a steady supply of income and there is less money spent to supply goods to consumers
- 136What are four factors determining the location of a business?Geographical factors (climate and land), availability of raw materials and supplies, availability of infrastructure (water, roads) and availability of labour supply
- 137What are three functions of a small business? (very similar to a normal business)supply goods and services, create jobs and make a profit
- 138What is automation?The use of machines in a continuous process of operations
- 139What is mechanisation?Mechanisation is the substitution of human and animal labour with machines such as robots and computers
- 140What is Computer Aided Design?CAD is software used to design products that can be configured to meet the customer's satisfaction
- 141What is Computer Aided Manufacture?CAM involves the use of robots and machinery in the manufacturing sector
- 142What is Computer Aided Instructions?CAI is software designed to instruct users on procedures and methods
- 143What is the difference between a market and marketing?A market is a situation where buyers and selling meet to exchange goods and services while marketing is the process of identifying, anticipating and satisfying the requirements of customers profitably
- 144What is market research?This is the precise analysis of collected information about a marketing situation or problem
- 145What is pricing?Pricing is determining how to set prices considering the cost of production, discount and profit margin
- 146What are the five necessities for packaging design?A packaging design for an item should be functional, promotional, distinguished from competitors, convenient for distribution and must communicate the attributes and usage of the product
- 147What is Branding?Branding is distinguishing your product from other products (for example a logo)
- 148What are sales promotion?Sales promotion are efforts to make the consumers aware of the existence of a product
- 149What is distribution?Distribution is the process of getting the product to the consumer
- 150What is Advertising?This is the act of informing and urging consumers to purchase a product
- 151What are the four P's of the marketing mix?Product
Price
Place- channels of distribution
Promotion - 152What are the seven types of market research?Consumer Research- finding the target market
Sales Research- information on the target market
Product Research- reaction of consumers to changes in the product
Packaging research
Advertising research- to find the effectiveness of current advertising
Economic Research- changes in economic condition
Distribution research- best way to distribute product - 153What are four reasons for conducting Market ResearchTo identify marketing opportunities and to deal with potential challenges before the fact
To receive feedback on existing products
To learn about what competitors are doing
To know about the changes occurring in the market - 154What are the eight factors that influence consumer behavior?Price, Price of substitute goods, quality, taste(personal preference), tradition(eg. religious traditions), Income/affordability, spending patterns and brand loyalty
- 155What are the four forms of advertising?Informative advertising- informs potential customers about the benefits of the product
Persuasive advertising- entices the customer to purchase the product by using emotional approaches
Comparative advertising- compares products to competitors
Reminder Advertising- this is used when there are many competitors or when new strategies are needed to improve the popularity of the product - 156What are five functions of advertising?To highlight the unique features of a product
To highlight special events such as sales and late openings(eg. open until midnight)
To increase market share by stimulating demand
To educate consumers about the product
To inform potential buyers of the availability of the product - 157—
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- The nature of business, Internal Organizational Environment
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- Teddy-Ann Quam
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