Business Definitions Flashcards
Opportunity cost
Opportunity cost refers to what you have to give up to buy what you want in terms of other goods
Entrepreneur
Is an individual who creates a business bearing the risks but enjoying the rewards
Wages
A payment usually of money for labour or services according usually on a hourly payment
Piece rate
Is a way of paying for work based off a particular amount done rather than the time it took to do the job
Commission
Is a fee paid to a sales person in exchange for services or completing a sales transaction
Fringe benefits
A amount paid on top of your usual basic salary
Bonus
One off payment made in addition to a usual payment
Profit sharing
Workers receive a share of a profit
Shared ownership
Two people equally own the same thing
Job rotation
A practice of regularly transitioning all employees between different jobs
Job enlargement
Combining tasks across the same level within a company
Job empowerment
Is when you give employees more authority and control in their role
added value
added value is when you take a product or material and you add to it to make it more interesting to the customer
created value
is to take raw materials and manipulate the materials and turn them into something useful
specialisation
is when a business is in a specific area
what is the economic problem.
the economic is trying to satisfy demand with a limited supplies.
opportunity cost
is the next best alternative given up by choosing another item
capital
the money on hand to run day to day operations and grow in the future
primary sector
they extract the natural materials from the earth to be used in a business
private sector
where the goverment doesn’t own all the major businesses so there fore it is considered a private sector n
tertiary sector
tertiary is the business that provide services and other sectors of industry for them to buy off and sell to customers
