Business activity Flashcards
entrepreneur
A person who takes a risk of starting and running a business enterprise
characteristics of an entrepreneur
determined , creative , risk taking
business plan
A document that states : product finance marketing market research
finance
Money needed to start or run a business
markets
where businesses sell their goods and services
resources
the things a business needs to make it work
operate
how the business works
aims and objectives
the goal that the business is trying to achieve :
profit
survival
growth
limited liability
the responsibility for paying back debt is limited to the ammount invested by the shareholder
unlimited liability
responsibility for all the debts rests with the owners , possessions are at risk
continuity
whether a business continues to exist after an owner dies
sole trader
A business owned by one person
partnership
a business owned by 2 - 20 people
plc
A business that can sell shares on the stock market
deed of partnership
a document that states out terms of the partnership / how profits are shared
capital
money raised to start or develop a business
sleeping partner
a person who invests money in a business who takes no part of the day to day running
shareholders
the owners of an ltd or plc
dividend
money paid to shareholders as a return on investment
start-up
a new business enterprise
statisficing
the business makes enough profit to enable it to meet needs but not as much profit as possible
market share
the percentage of a market a business controls
business objectives
what a business is trying to achieve
profit
revenue- costs
survival
when a business just manages to keep going
providing a service
meeting the customers needs
stakeholders
a person or group who is interested in the business
internal stakeholders
stakeholders within a business
external stakeholders
stakeholders outside a business
organic growth
internal growth of a business by increasing sales
merger
two or more businesses agree to join together to become one large business
external growth
growth achieved through a takeover or merger
horizontal growth
a merger or takeover of a business in the same industry as each other
backwards vertical growth
a business merges with a business that supplies it with goods or services ( bakery aquires a wheat farm )
forwards vertical growth
a business mergers with a business that IT SUPPLIES TO ( a ice cream van buys a fleet of ice cream vans )
diversification
a business merges or takes over a company with no connection to each other ( coca cola and an oil firm )
