Business definitions Flashcards
Business
An organisation that exists to provide goods and services on a commercial basis.
Entrepeneur
A person who organises, operates and assumes the risk for a business venture.
Entrepeneur
A person who takes the risk in starting a new business.
Start-Up
A new business enterprise, formed by one or more entrepreneurs.
Liabilities
Anything that business owes e.g. money owed to a bank
Limited Liability
A persons financial liability is a fixed sum.
Unlimited liability
Your personal assets are at risk if the company is in debt.
Sunk Costs
Initial costs that you cannot get back.
Trade Creditors
The bills you need to pay
Franchisee
A person who is responsible for the sale of goods for a franchise.
Franchisor
Established entrepreneur with a licensed business model. Owns the franchise.
Sales Maximisation
Where a business attempts to generate as much sales revenue as possible.
Survival
A business aims to continue to trade.
Employee Welfare
Business aims to keep the highest standards of health, happiness and care of their staff.
Market Share
Where a business aims to have a larger portion of sales in the market in which they compete.
Liquidity
The ease with which assets can be converted into cash.
Assets
Resources that belong to a business e.g. machinery, stock or vehicles.
Opportunity Cost
Can be measured as the cost of foregoing the next best alternative.
Trade-Off
When less of one is exchanged for more of another. It is also known as a compromise.
Mass Market
This is the market that is aimed at the general population
Niche Market
This is a subset of the main market and addresses a specialist need
Global Business
Companies operating internationally on a global scale
Non-Current Assets
Owed and used for more than a year
Current Assets
Already money or will soon be money
