Business In The Real World Flashcards
What is a Business?
An organisation which is designed to supply a product or service.
What is a product?
A product is anything that is capable of satisfying customers needs, it is tangible for example a mobile phone.
What is a service?
An act that a business person carries out for you in exchange for money, for example dental treatment.
What are the four factors of production?
Land - somewhere to produce the goods.
Labour - People to work in the business.
Capital - Money to get the business started.
Enterprise - This is the drive ir motivation from the owners to start a business.
What is the primary sector?
The primary sector extracts raw materials from the planet, for example mining diamonds, coal.
What is the secondary sector?
Are manufactured from raw materials.
What is the tertiary sector?
Includes shops,reatail and banking.
What is a sole trader?
A sole trader is when one person owns the whole business.
What is a Partnership?
A partnership is a type of business that has between 2 and 20 owners. They decide to set up and run a business between them.
What is a Private Limited Company? (Ltd)
A company that becomes its own legal property, this means if the business owes money you don’t have to pay out of your own pocket.
What is a Public Limited Company?
A business that is legally allowed to sell its shares to the public.
What is Companies House?
Any limited company or partnership has to register with Companies House.
What is the deed of partnership?
A document that is signed by all the owners of a business setting out the terms they must abide by.
What are Dividends?
A sum of money paid regularly by a company to its shareholders out of its profits.
What are 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.
What is a grant?
A grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back.
What is a hostile takeover?
A takeover of one company by another that is accomplished without the agreement of the target company’s management.
What is income tax?
Tax that someone pays based on their personal income (the money that they earn).
What is 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.
What are profits?
The amount of money made after all costs are deducted.
What is a share capital?
The money raised when a business becomes a public limited company by offering shares in the business in return for capital.
What are shareholders?
A part owner of a private or public limited company.
What are shares?
A percentage or portion of a company.
What is the Stock market?
A centralised market where business shares are traded.
