Business In The Real World (Topic 1) Flashcards
Good
A physical product
Service
An intangible product
Consumer
Uses the service (not the good)
Etc. Spotify
Costumer
Someone who buys a good but not a service
Social Enterprise
A business that does not aim to make a profit but to help society
Etc. Charities
Sole Trader
Business owned and opperated by one person
Stock Exchange
A place where shares of business or social enterprises are bought and sold
Aim
A general goal of a business
Objective
Specific target set out by a business to achieve - SMART
Business
A business aims to provide something that is demanded by others
Internel Growth/ Organic Growth
Occurs when a business gets bigger by selling more of it’s own product
External Growth
When a business gets bigger by joining or buying other businesses
Market Capitalisation
Measures the value of all ,the businesses, shares
Market price of a share X the overall amount of shares
E-commerce
Is the act of buying or selling a product using an electrical system such as the internet
Outsourcing
Occurs when a business uses another business to produce for it
Merger
When two or more businesses join together to form a new business
Takeover
When a business buys control of another business
Economics of Scale
Occurs when a business’s unit cost of production fall as its output rises and the business expands
Diseconomics of Scale
Occurs when the cost per unit increases as a business expands
Quota
Is a limit on the number of foreign goods imported into a country
Imports
Goods and services purchased from overseas consumers of businesses
Tarrif
Is a tax on foreign goods imported into a country
Protectionist Measures
Policies government uses to protect their own businesses against foreign competition
Business Plan
Is a document setting out what a business does and what it wants to achieve in the future
Business planning
The process of producing a business plan
