business activity book definitions Flashcards
define premises
buildings and land used by a shop or business
define organisation
group that has formed for a particular purpose
define business
organisation that produces goods and services
define goods
physical products
define services
non-physical products
define output
amount of goods or work produced by a person, machine or factory
define consumer goods
goods and services sold to ordinary people (consumers) rather than businesses
define producer goods
goods and services produced by one business for another
define wants
people’s desires for goods and services
define scarce
resources with limited availability
define needs
basic requirements for human survival
define EBITDA
earnings before interest, tax, depreciation and amortisation
define public sector
business organisations owned by central or local government
define private sector
business organisations owned by individuals or groups of individuals
define stakeholder
an individual or group with an interest in the operation of a buiness
define entrepreneur
person who takes risks and sets up a business
define objectives
goals or targets set by a business
define executives
managers in an organisation or company who help make important decisions
define diversify
if a business diversifies, it increases the range of goods or services it produces
define financial return
monetary return
define profit maximisation
making as much profit as possible in a given time period
define evolve
to develop and change gradually over a long period of time
define shareholdres
owners of limited companies
define dividends
share of the profit paid to shareholders in a company
define profit satisficing
making enough profit to satisfy the needs of the business owner
define sustained
continued for a long time
define legislation
law or set of laws
define automation
use of computers and machines instead of people to do the job
define economies of scale
financial advantages (falling average costs) of producing something in very large quantities
define large business
a business that employs more than 250 people
define small business
a business that employs fewer than 50 people
define revenue
money from the sale of goods and services
define legal status
position defined by law
define innovator
someone who introduces changes and new ideas
define labour
people employed in a business or used in production
define unincorporated
businesses where there is no legal difference between the owner and that business
define incorporated
business that has a separate legal identity from that of its owners
define sole trader
business owned by a single person
define unlimited liability
owner of a business is personally liable for all business debts
define partnerhip
business owned by between 2 and 20 people
define deed of partnership
binding legal document that states the formal rights of partners
define limited partnership
partnership where some partners contribute capital and enjoy the share off the profit but do not take part in running of the business
define limited liability
business owner is only liable for the original amount of money invested in the business
define audits
official examination of a company’s financial records in order to check that they are correct
define comply
to do what you have to do or are asked to do
define franchise
structure in which a business (the frabchisor) allows another business (franchisee) to trade under their name
define merchandise
goods that are being sold
define cooperative
company in which all the people working there own an equal share of it
define social enterprise
business that aims to improve human or environmental wellbeing
define worker cooperative
cooperative that is owned by its employees
define consumer cooperative
cooperative that is owned by its customers
define retail cooperative
cooperative of retail members, who often work together to assert their purchasing power
define charities
organisations that give money, goods or hrelp to people who are poor, sick or in need
define accountable
responsible for the effects of your actions and willing to explain or be critisised by them
define transparent
language or information that is clear and easy to understand
define venture capitalists
specialist investors who provide money for business purposes, often to new businesses
define limited companies
business organisations that have a separate legal identity from that of their owners
define chairperson
someone who is in charge of a meeting or directs the work of an organisation
define certificate of incorporation
document that is needed before a new company can start doing business
define LTD
a private company limited by shares
define stockmarket
market for shares in PLCs
define PLC
a lmited company whose shares are freely old and traded
define flotation
process of a company going public
define regulatory control
official power to control an activity and to make sure that it’s done in a satisfactory way
define prospectus
document prodcued by a compan that wants the public to buy its shares
define multinational company
large business with significant production of service operations in at least two different countries
define issue shares
sale of new shares
define productivity
rate at which goods are produced and the amount produced especially in relation to the work, time and money needed to produce them
define portfolio
collection of business interests or products
define public corporations
business organisations owned and control by the government
define infrastructure
basic systems and structures that a country or organisation needs in order to work properly
define natural monopoly
market where it is more efficient to have just one organisation meeting total market demand
define subsidise
paying part of the costs often by the government in business
define privatisation
transfer of public sector resources to the private sector
define primary sector
production involving the extraction of raw materials from the earth
define secondary sector
production involving the conversion of raw materials into finished or semi-finished goods
define de-industrialisation
decline in manufacturing
define tertiary sector
production of services in the economy
define assembly plant
factory where parts are put together to make a finished product
define brownfield sites
areas of land that were onced used for urban development
define fracking
the process of injecting liquid at high pressure into subterranean rocks
define greenfield sites
previously undeveloped areas of land, usually on the outskirtsof towns and cities
define congestion
problem of too much traffic in a place
define assisted areas
areas that are designed by a government as having economic problems and are targeted to recieve support in a variety of forms
define viability studies
careful study of how a planned activity will work
define trade bloc
group of countries situated in the same region that join together and enjoy trade free of barriers
define emerging economies
repidly growing economies
define amenities
something that makes a plaec confortable or easy to live in
define monetary system
system of money in a particular country of the world as a whole and the way that it’s controlled by governments and central banks
define globalisation
growing integration of the world’s economies
define intelectual property
people’s knowledge or creative ideas that have commercial valueand are protectable under different forms of copyright
define saturate market
to offer so much of a product that there is more than people want to buy
define predator
business that tries to use another’s weakness to get advantages
define hostile takeover
when the company that’s being taken over does not want or agree to
define bid
offer to pay a particular price for something
define auction site
online website where products are sold to the person who offers the most money for them
define commodities
products that are bought and sold
define patents
legal documents 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
define ventures
new business activity that involves taking risks
define currency reserves
money in foreign currency held by a country and sued to pay for imports and foreign debts
define enterprise
the activity of starting and running a business
define human capital
people and their skills
define environmentalists
those converned about environmental wellbeing
define pressure group
group or organisation that tries to influence the opinions or ordinary people and persuade the government to do something
define exploitation
situatuion in which you treat someone unfairly by asking them to do things for you ut give them very little in return
define repatriation of profit
where a multinational returns the profits from an overseas venture to the country where it is based
define solidarity
loyalty and general agreement between all the people in the group because they all have a shared aim
define livelihood
waya to earn money in order to live
define exports
goods and services sold overseas
define evade
avoiding paying money that you ought to pay
define surplus
amount of something that is more than needed or used
define imports
goods and services bought from overseas
define invisible trade
trade in services
define visible trade
trade in physical goods
define balance of trade
defference in visible exports and visible imports
define exchange rates
value of one currency in terms of the other
define transactions
business deals or actions , such as buying or selling something
define depreciation
fall in exchange rate
define appreciation
rise in exchange rate
define commision
extra amount of money that is paid to a person according to the value of goods they have sold or services they have provided
define legal framework
structure of society or a legal political system
define constraint
something that limits your freedom to do what you want
define lay off staff
make employees redundant
define fiscal policy
using changes in taxation and government expenditure to manage the economy
define merger
two or more businesses joining together to form one new firm
define subsidy
financial support given to a domestic producer to help compete with overseas firms
define anti-competitive practises
attempts by firms to prevent or restrict competition
define social secutiry payments
money taken by the government from people’s wages to pay for the system of payments ot unemployes or ill
define barriers to entry
restriction that mean it is difficult for new firms to enter a market
define tariff
a tax on import
define trade barriers
measures designed to restrict trade
define quota
a physcial limit on the quantity of imports allowed into the country
define infant industries
new industies that are yet to be established
define dumping
selling goods in another country below the price
define protectionism
use of trade barriers to protect domestic producers
define tax allowances
part of income that is not taxed
define budget
an official statement that a government makes about how much it intends to spend and what the rates of taxes will be for the next year
define budgetary measures
actions taken by the government to influence business and the economy
define urbanisation
process of constructing more and more buildings on rural land
define overtrading
taking on more work than a business can afford to fund effectively
define capital-intensive
use of relatively more machinery than labour in production
define sustainable development
idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations
define capital employed
amount of money invested in a business
define undercapitalised
starting a business with insufficient finance
define inverntory
stocks of goods
define fixed assets
resources that are used repeatedly for a period of time by a business such as property, tools, vehicles and machinery
define downturn
period of process in which business activity is reduced and conditions become worse
define lease
legal agreement that allows you to use an asset for a period of time in return for rent
define outcompeted
perform more effectively in particular field
define discretionary
not controlled by strict rules
