Business In The Real World Flashcards
Business
An 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 put up for sale
Service
Assistance or advice given to customers during and after the sale of good
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 to make a business
Labour
The efforts exerted by workers to produce any goods or services
entrepreneurship
When someone has the idea to run or start a business
Primary sector
The economic sector that revolves around the extraction of raw materials/natural resources for businesses
Secondary sector
The process of making the raw materials into products ready to sell
Teritary sector
The tertiary sector of the economy, generally known as the service sector where the products are sold at shops like tesco or sainsburys
Sole trader
A self-employed person who owns and runs thier own business as an individual
Partnership
An association of two or more people as partners
Private limited company (LTD)
An organisation of shareholders who have each invested a sum into the business
Public limited company (PLC)
A company that has offered shares of stock to the general public
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
Deed of partnership
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
Dividends
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
Hostile takeover
A takeover of one company (called the ‘target company’) by another (called the ‘acquirer’) that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved
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
Where a business stays operating for longer than 2 years
Make profit
Is when a business make more money than you spent on making a product
Maximise profit
Is when a business could reduce cost or increase revenue in a product to maximise profit
Maintain sales
This is when a business is running low on sales so they have to change the product slightly to increase the sales again
Market share
Is the proportion of total sales in a market made by one business
Value of shares
The amount of money that a company makes selling its products or services compared to the amount of money that others make
Market research
Market research is an organized effort to gather information about target markets and customers: know about them, starting with who they are.
Financial forecasts
A financial forecast is an estimate of future financial outcomes for a company or project, usually applied in budgeting, capital budgeting and / or valuation.
External pressures
External influences are the factors beyond a company’s control that affect operations and success. Examples include government regulations, economic recessions, population demographics, and technology.
Sales and marketing
Sales and marketing have distinct roles in business. Sales is about closing deals and generating revenue through direct interaction with customers.
Production process
A production process is a method of using economic input or resources, like labor, capital equipment or land, to provide goods and services to consumers.
Human resources
Human resources (HR) is the division of a business responsible for finding, recruiting, screening, and training job applicants. HR departments also handle employee compensation, benefits, and terminations.
What is environmental reporting
Is the publication of a business’s environmental performance to the general public
What is the economy
The economy is made up of millions of individual customers, many thousands of businesses and governments, all take decisions on what to buy and produce
What are customers
Are individuals who buy goods and services from businesses
What is the economic climate
Describes the state of key factors within a country such as the level of goods and services produced and the number of jobs avaliable
What are Interest Rates
They refer to the cost of borrowing money or the reward of saving money, expressed as a percentage
What is an Overdraft
It is a flexible loan which a business can use, whenever necessary, up to an agreed limit
What is Globalisation
Is the trend for markets to become worldwide in scope
What is a Mulitnational Company (MNC)
It produces goods and services in more than one country. They are also called transnational corporations (TNCs)
What is International Trade
It is the selling of goods and services across national borders
What are Exports
Exports are goods and services produced by a business in one country and sold in another
What is a Tariff
A Tariff is a tax on foreign goods imported into a country
What is Growth
Growth occurs when a business sells increased quantities of its products
What are Economies of Scale
Economies of Scale occur when the cost of producing a single unit falls as output increases
What is Inward Investment
Inward Investment occurs when governments, businesses and individuals invest capital into another country, for example, building new factories or buying companies
What is a Takeover
A Takeover occurs when one business buys control of another one
What is a Product Design
Product Design translates the needs of consumers or the inventiveness of entreprenuers, into a saleable product
What is Quality
Quality is the extent to which a consumer is satisfied with a product
What is price
Price is the amount a business asks a customer to pay for a single product
What is Exchange Rate
An Exchange Rate is the price of one currency expressed in the terms of another
What are Imports
Imports are goods and services purchesed from overseas customers in the domestic market
What is profit
Profit is the amount by which a business’s revenue from all its sales exceeds its total costs
What is Legislation
Legislation is a set of rules that governs the way society operates. It is another term for ‘laws’
What is the national living wage
It is an hourly rate of lay which is set by the government . All employees above a certain age must recieve al least this rate of pay
What is competition
Competition exists when more than one business is attempting to attract the same customers
What is monopoly
A monopoly exists when a business does not face any competition in a particular market
What is a market
Markets exist where there are buyers and sellers
What is market share
Market Share is the percentage of sales in a particular market recorded by a business
What is an uncertainty
An uncertainty occurs where there is a lack of information about a situation this means the outcome or consequences are very difficult to predict
What is a risk
Risk is the possibility of something going wrong
What is a business plan
A business plan is a document setting out what a business does and what it hopes to achieve in the future
Production (or operations) management
Refers to all the activities in managing the transformation process
