4-11 Flashcards
Venture capitalists
Specialist investors who’re provide money for business purposes, often to new businesses
Limited companies
Business organisations that have a separate legal identity from that of its owners
Limited liability
Business owner is only liable for the original amount of money invested in the business.
Chairperson
Someone who is in charge of a meeting or directs the work of a comitee or organisation
Certificate of incorporation
Document needed before a company starts doing business
Stock market
Market for shares in PLC’s
Prospectus
Document produced by a company that wants the public to buy its shares.
Regulatory control
Official power to control an activity and make sure it is done in a satisfactory way.
Flotation
Process of a company going ‘public’
Multinational company
Large business with significant production or service operations in at least 2 different countries.
Issue(shares)
Sale of new shares
Productivity
Rate at which goods are produced, and the amount produced, especially in relation to the time, work and money needed to produce them
Public corporations
Business organisation owned and controlled by the state/government
Portfolio
Collection of business interests or products
Infrastructure
Basic systems and structures that a country or organisations need in order to function properly.
Natural monopoly
Market where it is more efficient to have just one organisation meeting total market demand
Subsidise
Paying a part of the cost (often by the government in businesses)
Privatisation
Transfer of public resources to the private sector
Primary sector(industry)
Production involving the extraction of raw materials in the earth
Secondary sector
Production involving the conversion of raw material into finished and semi-finished goods.
Assembly plant
Factory where parts are put together to make finished products
Tertiary sector
Production of services in the economy
De-industrialisation
Decline in manufacturing
Brownfield sites
Areas that were one used for urban development
Greenfield sites
Previously undeveloped areas of land, usually in the outskirts of town and cities
Exploitation
Situation in which you treat someone unfairly y asking them to do things for you, but give them very little.
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.
Exports
Goods and services sold overseas
Imports
Goods and services brought from overseas
Surplus
Amount of something that is more than what is needed or used
Visible trade
Trade in physical goods
Invisible trade
Trade in services
Balance of trade (or visible balance)
Difference between the visible exports and visible imports
Transactions
Business deals or actions, such as selling or buying something
Exchange rate
Value of one currency in terms of another
Commission
Extra amount of money paid to a person or organisation according to the value of the goods they have sold or the services they have provided.
Predator
Business that tries to use another’s weaknesses to get advantages
Hostile takeover
Takeover that the company being taken over doesn’t agree to or does not want
Bid
Offer to pay a particular price for something
eg. a buisiness
Commodities
Products that are bought and sold
eg. (oil, gold, iron ore, rice…)
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.
Ventures
New business activities that involve taking risks
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.
Human capital
People and their skills
Eg. a miner, knows how to mine
Enterprise
The activity of starting and running a business
Livelihood
Way you earn money in order to live
Eg. Selling clothes in my own shop
Assisted areas
Areas that are designated by the government as having economic problems and are targeted receive support in a variety of forms.
Viability studies
Careful study of how a planned activity will work, how much it will cost and the income it is likely to produce
Trade bloc
Group of countries in the same region that join together to annoy a trade free of barriers
Eg European Union
Emerging economies
Emerging economies have gauge growth potential but also pose significant risks
Rapidly growing economies
Eg Brazil
Globalisation
Growing integration of the world’s economies
Intellectual market
People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
Monetary system
System of money in a particular country or the world as a whole, and the way that it is controlled by the government and central banks
Saturated(market)
To offer so much of a product for sale that there is more than people want to buy
Private limited company (Ltd)
A company that does not publicly trade shares and is limited to a maximum of 50 shareholders
