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AS Business 2024 > Business and its environment > Flashcards

Business and its environment Flashcards

1
Q

Consumer goods

A

Physical and tangible goods sold to the public

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2
Q

Consumer services

A

Non-tangible goods or products sold to the public

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3
Q

Capital goods

A

Physical goods used by the industry to aid in the production of other goods and services

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4
Q

Creating value

A

Increasing the difference between the cost of purchasing bought in materials and the price at which finished goods are sold for

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5
Q

Added value

A

The difference between the cost of purchasing bought in goods and the price for which goods are sold for

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6
Q

Opportunity cost

A

The benefit of the next most desired option which is given up

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7
Q

Entrepreneur

A

Someone who takes the financial risk of starting and managing a new venture

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8
Q

Social enterprise

A

Business with many social objectives that reinvest most of its profit into benefiting society rather than maximising returns to owners

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9
Q

Triple bottom line

A

Three objectives of social enterprises : economic, social and environmental

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10
Q

Primary sector business activity

A

Industries of firms that extract natural resources so that they can be processed by other firms

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11
Q

Secondary sector business activity

A

Manufacture and process products from natural resources

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12
Q

Tertiary sector business activity

A

Firms that provide service to consumers and other businesses

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13
Q

Public sectors

A

Organisations accountable to and controlled by a central local government

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14
Q

Private sector

A

Businesses owned and controlled by individuals or group of Individuals

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15
Q

Mixed economy

A

Economic resources are owned and controlled by both government and private individuals – public and private sector

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16
Q

Free-market economy

A

Economic resources are largely owned by the private sector with very little state intervention

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17
Q

Command economy

A

Economic resources owned, planned and controlled by the state

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18
Q

Sole trader

A

Business in which one person provides the permanent finance and in return has full control of the business and keep all the profits

19
Q

Partnership

A

Business formed by two or more people to carry on a business together with shared capital investment and shared responsibility

20
Q

Limited liability

A

The only liability or potential loss a shareholder has if the company fails is the amount invested in a company, not the total wealth of the shareholder

21
Q

Private limited company

A

A business that is owned by shareholders who are often members of the same family – cannot sell shares to public

22
Q

Public limited company

A

A business with a legal right to sell shares to the general public – share prices quoted on national stock exchange

23
Q

Shares

A

Certificate confirmation part ownership of a company and entitling the shareholder owner to dividends and certain shareholder rights

24
Q

Shareholder

A

A person/institution owning shares in a limited company

25
Q

Memorandum of association

A

States company name, address of head office through which it can be contacted, maximum share capital for which company seeks authorisation and clear aims of the business

26
Q

Articles of association

A

The document covers the internal workings and control of the business

27
Q

Franchise

A

Business uses the same name, logo, trading systems of an existing successful business

28
Q

Joint-venture

A

Two or more businesses agreed to work closely together on a project and create a separate business Collaboration to do so

29
Q

Public corporation

A

Business enterprise owned and controlled by the state – nationalised industry

30
Q

Holding company

A

Business organisations that owns and controls several businesses, but does not unite them into one unified company

31
Q

Capital employed

A

Total value of all long-term finance invested in the business

32
Q

Market capitalisation

A

Total value of a companies issued shares

Current share price x by total number of shares issued

33
Q

Revenue

A

Total value of sales made by a business in a period

34
Q

Internal growth

A

Expansion of the business by means of opening new branches, shops or franchises – organic growth

35
Q

Mission statement

A

Statement of a businesses aims phrased in a way to motivate employees and stimulate interest by outside groups

36
Q

Corporate social responsibility – CSR

A

Businesses that consider the interests of society by taking responsibility for the impact of their decisions/activities on consumers, employees, communities and the environment

37
Q

Management by objectives – MBO

A

Method of coordinating and motivating all staff in an organisation by dividing its overall aim in to specific targets for each department, manager and employee

38
Q

Ethical code – Code of conduct

A

Document detailing the companies rules and guidelines on staff behaviour that must be followed by all employees

39
Q

Business

A

Any organisation that uses resources to meet the needs of a customer by providing a product or service they demand

40
Q

Want

Good

Need

Services

A

Something you would like to have but do you not need in order to live

Something you can see touch or smell

Something you require in order to survive

Something another person does for you

41
Q

Factors of production – CELL

A

C – capital
Equipment and finances; that which is used to utilise the resources

E– Enterprise
Ability and enthusiasm to combine all factors of production to create a business

L – labour
Work provided by people or machinery in order to complete a job

L – land
Everything that occurs naturally and can be seen in nature

42
Q

Industrialisation

A

The growing importance of the secondary sector manufacturing industries in developing countries

The opposite is de-industrialisation

43
Q

Market share

A

Sales of the business as a proportion of total market share

Total business sales
Total industry sales X100

44
Q

Objectives

A

Ensures ability to direct, control and review businesses success

AS Business 2024 (5 decks)

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