1 Business In The Real World Flashcards
Companies House
Any limited company or partnership business has to register with companies House. These records are public and there is usually a fee to register.
Deed of partnership
A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners.
Dividends
A sum of money paid regularly by a company to its shareholders out of its profits.
Economies of scale
Where the average costs of production, distribution and sales fall as the business increases the amount of product that it produces, distributes and sells.
Grant
A grant is money given to a business usually by the government or lottery fund, that does not need to be paid back.
Hostile takeover
A takeover of one company called the “target company” by another called the “acquirer” that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved.
Business survival
Keeping the business operating for a certain amount of time
Profit maximisation
A process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns.
Growth
The increase in a company’s size, revenue, market share, and profitabilty over time.
Domestic business
Involves the economic transactions that take place inside the geographical boundaries of a country
Industrial growth
A growth strategy that involves taking business operations produces, and services from a home market into target markets abroad.
Increased market share
The more sales a company has than its competitors in their given industry
What is a stakeholder?
Someone that has an interest in the business.
What are the typical objectives of an employee?
Job security and higher earnings
What are the typical objectives of a manager?
Secure jobs and higher earnings.
