Business In The Real World Flashcards
Business
organization that provides goods and services to the community in exchange for money, with the goal of becoming profitable
Product
an article or substance that is manufactured or refined for sale
Service
assistance or advice given to customers during and after the sale of goods
Land
real estate or property, minus buildings and equipment, which is designated by fixed spatial boundaries
Capital
the money used to build, run, or grow a business
Labour
the efforts exerted to produce any goods or services
entrepreneurship
the activity of setting up a business or businesses, taking on financial risks in the hope of profit
Primary sector
the economic sector that revolves around the extraction of raw materials/natural resources
Teritary sector
The tertiary sector of the economy, generally known as the service sector
Sole trader
A type of enterprise owned by one person with no legal distinction between the owner and business
Partnership
A formal agreement by two or more parties to manage and operate a business and share the profits
LTD Company
A type of business structure where the company has a legal identity, seperate of shareholders and directors
Companies House
Any limited company or partnership business has to register with Companies House. These records are public and there is usually a fee to register.
A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners.
Deed of partnership
Dividens
A sum of money paid regularly by a company to its shareholders out of its profits.
Economies of scale
Where the average costs (of production, distribution and sales) fall as the business increases the amount of product that it produces, distributes and sells.
Grant
A grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back.
Income tax
Tax that someone pays based on their personal income (the money that they earn).
Limited liability
When the business owner or owners are only responsible for business debts up to the value of their financial investment in the business.
Profits
The amount of money made after all costs are deducted.
Share capital
The money raised when a business becomes a public limited company by offering shares in the business in return for capital.
Shareholders
A part owner of a private or public limited company.
Shares
A percentage or portion of a company.
Stock market
A centralised market where business shares are traded
Unlimited liability
When the business owner or owners are personally responsible for all the debt of the business, no matter what the value.
Survival
keeping the business operating for a certain amount of time
Make Profit
reducing costs, increasing turnover, increasing productivity, and increasing efficiency
Maximise profit
reducing costs, increasing turnover, increasing productivity, and increasing efficiency
Maintain Sales
Keeping the same amount of revenue coming in and out of the company
Market share
businesses’ strategic approach and activities to promote their products or services, generate leads, and drive revenue through sales channels
Value of shares
businesses’ strategic approach and activities to promote their products or services, generate leads, and drive revenue through sales channels
Growth
Growing the business internstionally and domestically increasing the revenue
Customer satisfaction
How the customer feels and whether they’re happy with the product or service
Ethicals
What a company might believe is the right thing to do
Stakeholders
Someone with a particular interest or can be affected by the business
Goals
to reach a specific revenue target
Pricing
the methods and procedures companies employ to determine the rates they charge for their goods and services.
Knowing your market
A company needs to have a good handle on the current state of its industry and the existing competition
Customers
Figuring out who your customers are, how you’ll reach them, and ultimately how you’ll convince them to spend money on your product
Competitors
Direct competitors offer similar products or services, while indirect competitors offer alternatives or substitutes that could fulfill the same customer needs.
Location
helps financiers understand the commercial potential and the risks of investing in your business
Production
the methods you will use to advertise and sell your products and services.
Financial
helps determine if an idea is sustainable, and then keeps you on track to financial health as your business matures
Fixed costs
any number of expenses, including rental and lease payments, certain salaries, insurance, property taxes, interest expenses, depreciation, and some utilities.
Sales revenue
Sales x Average Price of Service or Sales Price
Profit/less
a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period
Variable costs
costs that change as the volume changes
Ethics
business ethics refers to the standards for morally right and wrong conduct in business
Environmental considerations
– impact on traffic congestion
– recycling
– disposing of waste
– noise and air pollution
Sutainability
– global warming
– using scarce resourc
Ethical businesses
Ethical businesses operate to meet the wider
needs of their stakeholders, and try to act in a
way that is honest and fair
Ways a business could become more ethical
• Paying workers higher wages
• Improved working conditions
• Reducing pollution
• Buying Fairtrade supplies/agreeing to pay
more to suppliers
• Donations to the community
• Reducing packaging
Treatment of workers – working
conditions
Modern day slavery
Lean production
an approach to production that aims to minimise waste.
Just in time production
holds as little stock as possible.
Items are ordered just in time to be used.
Kaizen
means continuous
improvement. It is an approach to production that aims to achieve change from a series of small steps.
Flow production
occurs when an item moves continuously from one stage of the process to another.
Specialisation
occurs when individuals focus on a limited number of tasks.
Job production
is a method of production in which a product is supplied to meet the exact requirements of a customer.
Production management
refers to all the activities in managing the
transformation process.
Production
the process of changing inputs such as labour services into goods and services that can be sold.
