Business Activity Flashcards
Define profit
The surplus of income/revenue over costs
Define product
Goods or services provided
What is meant by a gap in the market?
Where there is demand but no product or service to fill it
Define a stakeholder
A person, group or organisation with a direct stake in a business
Define a shareholder
Owner of shares in a business
What is an internal and external stakeholder?
Internal - direct interest in the business
External - less direct stake
Define business aims.
Long-term goals that a business works towards
Define business objectives
Short-term target that can be measured
What is a mission statement?
Statement of values and ambitions of a business that defines how it operates
What is social enterprise?
An organisation with social objectives aimed at stakeholders like members, customers and communities
What is a co-operative?
A group that shares in a business to ensure a fair deal for members
Define a mutual society
A society set up to provide benefit to its members
Define a charity
A ‘business’ that tries to do the most good for its chosen cause
Define chain of production
The stages of production a product passes through
Define the 3 stages of production
Primary - extraction of raw materials
Secondary - making the product
Tertiary - providing a service
