1 business activity and influences on business Flashcards
1
Q
Ch1.p4.Premises
A
Buildings and land used by a shop or business
• e.g. factory and shops
2
Q
- Business
A
Organisation that produces goods and services
3
Q
- Organisation
A
Group, such as a club or business, that has formed for a particular purpose
4
Q
- Goods
A
Physical products, such as mobile phone, a packet of crisps or a pair of shoes
5
Q
- Services
A
Non-physical products such as banking, car washing and waste disposal
6
Q
- Output
A
Amount of goods or work produced by a person, machine or factory
7
Q
- Human Resources
A
In some businesses, the department that deals with employment, training and helping people
8
Q
- Consumer goods
A
Goods and services sold to ordinary people (consumers) rather than businesses
9
Q
- Producer goods
A
Goods and services produced by one business for another
10
Q
- Needs
A
Basic requirements for human survival
11
Q
- Wants
A
People’s desires for goods and services
12
Q
- Infinite
A
Without limits in space or time
13
Q
- Finite
A
Having an end or a limit
14
Q
- Scarce
A
Resources with limited availability
15
Q
- Private sector
A
Business organisations owned by individuals or groups of individuals
• e.g. apple or porche
16
Q
- Public sector
A
Business organisations owned and controlled by central or local government
•e.g. public schools or health
17
Q
- Stakeholder
A
An individual or group with an interest in the operation of a business
18
Q
- Entrepreneur
A
Person who takes risks and sets up new businesses; individual who organizes the other factors of production and risks their own money in a business venture
19
Q
- EBITDA
A
Earnings before interest, tax depreciation and amortisation
20
Q
Ch2. 11. Objectives
A
Goals or targets set by a business
21
Q
- Executives
A
Managers in an organisation or company who help make important decisions
22
Q
- Diversify
A
If a business, company or country diversifies, it increases the range of goods or services it produces
23
Q
- Financial return
A
Monetary return
24
Q
- Profit maximisation
A
Making as much profit as possible in a given time period
25
13. Shareholders
Owners of limited companies
26
13. Dividends
Share of the profit paid to shareholders in a company
27
13. Profit satisficing
Making enough profit to satisfy the needs of the business owner(s)
28
16. Automation
Use of computers and machines instead of people to do a job
29
16. Economies of scale
Financial advantages (failing average costs) of producing something in very large quantities
30
17. Large business
A business that employs more than 250 people
31
17. Small business
A business that employs fewer than 50 people
32
17. Revenue
Money from the sale of goods and services
33
Ch3. 20. Innovator
Someone who introduces changes and new ideas
34
20. Labour
People employed in a business/ used in production
35
20. Unincorporated
Business where there is no legal difference between the owner and the business
36
20. Incorporated
Business that has a separate legal identity from that of its owners
37
21. Sole trader or sole proprietor
Business owned by a single person
38
21. Unlimited liability
Owner of a business is personally liable for all business debts
39
21. Partnership
Business owned by between 2 and 20 people
40
21. Deed of partnership
Binding legal document that states the formal rights of partners
41
22. Limited partnership
Partnership where some partners contribute capital and enjoy a share of the profit but do not take part in the running of the business
42
22. Limited liability
Business owner is only liable for the original amount of money invested in the business
43
22. Audits
Official examination of a company’s financial records in order to check that they are correct
44
23. Franchise
Structure in which a business (the franchisor) allows another operator (the franchisee) to trade under their name
45
23. Merchandise
Goods that are being sold
46
24. Social enterprise
Business that aims to improve human or environmental wel-being, e.g. charities
47
24. Cooperative
Company, factory or organisation in which all the people working there own an equal share of it
48
24. Consumer cooperative
Cooperative that is owned by its customers
49
24. Retail cooperative
Cooperative of retail members, who often work together to assert their purchasing power
50
24. Worker cooperative
Cooperative that is owned by its customers
51
24. Charities
organisations that give money, goods or help to people who are poor, sick or in need
52
Ch4.p27. Venture capitalists
* specialists investors (individuals or companies) who provide money for businesses purposes, often to new businesses
* google inc or banks
53
28. Limited companies
Business organisations that have a separate legal identity from that of their owners
54
28. Limited liability (limited companies)
Shareholders are legally responsible for the debts of a company according to how many shares they own
• if a business goes bankrupt and a shareholder owns 50% of the business, and the business owes 3000 euros, the shareholder would owe 1500 euros
55
28. Chairperson
Someone who is in charge of a meeting or directs the work of a committee or organisation
56
28. Certificate of incorporation
Document needed before a new company can start doing business
57
29. Private limited company
In the UK, a private company limited by shares, which means that liability of the shareholders to creditors of the company is limited to the capital originally invested, a shareholder’s personal assets are protected, and with Ltd or Limited after its name
58
31. Public limited company
In the uk, a limited company whose shares are freely sold and traded, with a minimum share capital of 50000, and the letters Plc after its name
59
Prospectus
Document produced by a company that wants the public to buy its shares
60
31. Regulatory control
Official power to control an activity and to make sure that it is done in a satisfactory way
61
31. Flotation
Process of a company ‘going public’
62
31. Multinational company
Large business with significant production or service operations in at least two different countries.
63
33. Issue (shares)
Sale of new shares
64
Ch5. 35. Productivity
Rate at which goods are produced, and the amount produced, especially in relation to the work, time and money needed to produce them.
65
29. Stock market
Market for shares of PLC’s
66
36. Public corporations
Business organisations owned and controlled by the state/government
67
37. Portfolio
Collection (of business interests or products)
68
37. Infrastructure
Basic systems and structures that a country or organisation needs in order to work properly
69
38. Natural monopoly
Market where it is more efficient to have just one organisation meeting total market demand
70
38. Subsidie
Paying part of the costs (often by the government in business)
71
39. Privatisation
Transfer of public sector resources to the private sector (business)
72
Ch7. 50. Primary sector (industry)
Production involving the extraction of raw materials from the earth.
73
50. Secondary sector (industry)
Production involving the conversion of raw materials into finished and semi-finished goods
74
50. Assembly plant
Factory where parts are put together to make a finished product
75
50. Tertiary sector (industry)
Protection of services in the economy
76
52. De-industrialisation
Decline in manufacturing
77
Ch8. 57. Brownfield sites
Areas of land that were one used for urban development
78
57. Greenfield sites
Previously undeveloped areas of land, usually on the outskirts of towns and cities
79
61. Assisted areas
Areas that are designed by a government as having economic problems and are targeted to receive support in a variety of forms
80
61. Viability studies
Careful study of how a planned activity will work, how much it ill cost, and what income it is likely to produce
81
62. Trade bloc
Group of countries situated in the same region that join together and enjoy trade free of barriers
82
9. 64. Emerging economies
Rapidly growing economies (for example, Brazil) - emerging economies have huge growth potential it also pose significant risks
83
65. Globalisation
Growing integration of the world’s economies
84
66. Intellecual property
People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
85
66. Monetary system
System of money in a particular country or the world as a whole, and the way that it is controlled by governments and central banks
86
66. Saturate (market)
To offer so much of a product for sale that is more than people want to buy
87
70. Predator
Business that tries to use another’s weakness to get advantages
88
70.hostile takeover
Takeover that the company being taken over does not want or agree to
89
70. Bid
Offer to pay a particular price for something (for example, a business)
90
10. 74. Commodities
Products that are bought an sold (in business often refers to things like oil, gold, iron, ore, rice, wheat and meat)
91
74. Patents
Legal document giving a person or company the right to make or sell a new invention, product, or method of doing something and stating that no other person or company is allowed to do this
92
74. ventures
New business activity that involves taking risks
93
Ch8. 57. Brownfield sites
Areas of land that were one used for urban development
94
57. Greenfield sites
Previously undeveloped areas of land, usually on the outskirts of towns and cities
95
61. Assisted areas
Areas that are designed by a government as having economic problems and are targeted to receive support in a variety of forms
96
61. Viability studies
Careful study of how a planned activity will work, how much it will cost, and what income it is likely to produce
97
62. Trade bloc
Group of countries situated in the same region that join together and enjoy trade free of barriers
98
Ch9. 64. Emerging economies
Rapidly growing economies (for example, Brazil) - emerging economies have huge growth potential but also pose significant risks
99
65. Globalisation
Growing integration of the world’s economies
100
66. Intellectual property
People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
101
66. Monetary system
System of money in a particular country or the world as a whole, and the way that it is controlled by governments and central banks
102
66. Saturate (market)
To offer so much of a product for sale that there is more than people want to buy
103
70. Predator
Business that tries to use another’s weakness to get advantages
104
70. Hostile takeover
Takeover that the company being taken over does not want or agree to
105
70. Bid
Offer to pay a particular price for something (for example, a business)
106
Ch10. 74. Commodities
Products that are bought and sold (in businesses often refers to things like oil, gold, iron ore, rice, wheat and meat)
107
74. Patents
Legal documents giving a person or company the right to make or sell a new invention, product, or method of doing something and stating that no other person or company is allowed to do this
108
74. Ventures
New business activity that involves taking risks
109
76. Currency reserves
Money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts
110
76. Human capital
People and their skills
111
76. Enterprise
The activity of starting and running businesses
112
77. Exploitation
Situation in which you treat someone unfairly by asking them to do things for you, but give them very little in return
113
78. Repatriation (of profit)
Where a multinational returns the profits from an overseas venture to the country where it is based, typically from a developing country to a developed country (not often the other way around)
114
78. Livelihood
Way you earn money in order to live
115
Ch11. 82. Surplus
Amount of something that is more than what is needed or used
116
82. Exports
Goods and services sold overseas
117
82. Imports
Goods and services bought from overseas
118
82. Visible trade
Trade in physical goods
119
82. Invisible trade
Trade in services
120
82. Balance of trade (or visible balance)
Difference between visible exports and visible imports
121
84. Transactions
Business deals or actions, such as buying or selling something
122
84. Exchange rate
Value of one currency in terms of another
123
86. Commission
Extra amount of money that is paid to a person or organisation according to the value of the goods they have sold or the services they have provided
124
Ch12. 90. Fiscal policy
Using changes in taxation and government expenditure to manage the economy
125
90. Lay off (staff)
Make employees redundant
126
90. Social security payments
Money taken by the British government from people’s wages to pay for the system of payments to people who are unemployed or ill
127
92. Anti-competitive practices
(Restrictive trade practices) attempts by firms to prevent or restrict competition
128
92. Barriers to entry
Restrictions that mean it is difficult for new firms to enter a market
129
93. Merger
Two or more businesses joining together to form one new firm
130
94. Protectionism
Use of trade barriers to protect domestic producers
131
94. Infant industries
New industries that are yet to be established
132
94. Dumping
Where a business sells goods in another country often below costs
133
94. Trade barriers
Measures designed to restrict trade
134
94. Quota
Physical limit on the quantity of imports allowed into a country
135
94. Subsidy
Financial support given to a domestic producer to help compete with overseas firms
136
94. Interest
Price of borrowed money (and the reward to savers)
137
94. Monetary policy
Using changes in interest rates and the money supply to manage the economy
138
97. Budget
An official statement that a government about how much it intends to spend and what the rates of taxes will be for the next year or six months
139
97. Tax allowances
Part of income that is not taxed
140
98. Budgetary measures
Actions taken by the government to influence business and the economy
141
Ch13. 101. Urbanisation
Process of constructing more and more buildings on rural land
143
104. Sustainable development
Idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations
144
Ch14. Capital employed
Amount of money invested in a business
145
112. Overtrading
Taking on more work than a business can afford to fund effectively
146
Ch15. 117. Inventory
Stocks of goods
147
118. Fixed assets
Resources that are used repeatedly for a period of time by a business such as property, tools, vehicles and machinery
148
119. Downturn
Period or process in which business activity, production, etc. is reduced and conditions become worse
149
120. Undercapitalised
Starting a business with insufficient capital
150
120. Outcompeted
Perform more effectively in a particular field
151
101. Capital-intensive
Use of relatively more machinery than labour in production
