Business And Its Environment Flashcards
Privatisation
Is the process of transferring organisations from state ownership to being owned and controlled by individuals and other businesses in the private sector
Nationalisation
Is the transfer of a privately owned organisation to the control of the state
Innovation
The development of new ideas into new products or new methods of producing products
Regulation
Is the enforcement of principles or rules that result from the passing of a law or series of laws
Gig economy
Is a labour market in which short term contracts or freelance work are common as opposed to permanent jobs
Cartel
Exists when two or more businesses collide to control prices or output thereby limiting competition and increasing profits
Merger
Is the combining of two or more firms into a single business, following an agreement by the firms management teams and shareholders
Takeover
When a company acquired complete control over another by purchasing more than 50 % of share capital
Enterprise
All the skills needed to make new ideas work
Infrastructure
Refers to the physical and organisational factors necessary to allow both society and an economy to operate effectively
Joint venture
Occurs when businesses collaborate on a project but do not formally join together all of their activities
Market failure
Occurs when a market does not work properly and resources are not allocated correctly
Macroeconomics
Is the study of the behaviour of a whole economy and the factors that can influence it
Microeconomics
Is the study of smaller parts of an economy such as the behaviour and decision making of businesses
Economic growth
Is an increase in the value of goods and services produced by a nation’s economy over a period of time
Inflation
Is a sustained rise in the general price level and corresponding fall in the value of money
Unemployment
Is the number of people who are seeking a job but are unable to resource one
Recession
Is characterised by falling levels of demand and declining levels of output and employment over at least six months
Slump
Takes place when production is at its lowest, unemployment is high and there are many business failures
Supply side policies
Are a range of measures designed to improve the free operation of markets and therefore the total amount that is produced by an economy
Level of economic activity
Refers to the amount of spending and production in an economy, governments generally aim to have smooth increases in level of economy over time
Consumer price index
Measures the rate of inflation based on the changes in prices of a basket of goods and services
Cost push inflation
Happens when firms face increasing costs due to rising wages or increasing costs of raw material
Demand pull inflation
Occurs when the demand for country’s goods and services exceeds its ability to supply these products
Structural unemployment
Occurs due to fundamental changes in the economy whereby some industries reach the end of their lives
