3.1 What is a Business? Flashcards
What is a Profit?
The financial gain earned by a business after deducting total costs from total revenue.
What is a Cash Flow?
The movement of money in and out of a business, reflecting its liquidity and ability to meet
financial obligations.
What is a Mission?
The fundamental purpose or reason for the existence of an organisation, defining its core
values and guiding principles.
What are the Objectives?
Specific, measurable goals set by an organisation to achieve its mission.
What is a Revenue?
The total income generated by a business from its primary operations, typically from sales of
goods or services.
What are Fixed Costs?
Expenses that remain constant regardless of production or sales volume, such as rent or
salaries.
What are Variable Costs?
Expenses that fluctuate based on production or sales volume, such as raw materials.
Who is a Sole Trader?
An individual business owner who operates and manages a business on their own, assuming
full responsibility for profits and losses.
What is a Private Limited Company (LTD)?
A business entity with limited liability, typically owned by a small group of shareholders, and
restricted from offering shares to the general public.
What is a Public Limited Company (PLC)?
A corporation whose shares are traded on a public stock exchange, allowing a wide range of
investors to buy and sell ownership stakes in the company.
What is the Private Sector?
The part of the economy that is owned and operated by private individuals or companies,
aiming to generate profits.
What is a Public Sector?
The part of the economy that is owned and operated by the government, providing goods and
services to the public.
What is a Non-Profit Organisation?
An organisation that operates for purposes other than profit, such as charitable, educational
or social causes.
What is Social Enterprise?
A business entity that operates with a primary focus on addressing social or environmental
issues.
What is Unlimited Liability?
The legal obligation of business owners to personally cover all debts and liabilities of the
business, risking personal assets.
