Chapter 1 Flashcards
Business
An organisation that provides goods or services to consumers in order to make a profit
Profit
The difference between what it costs to produce a good or service and it’s price. ( a business makes profit when their income is greater than their cost of production)
Organisation
A group of people who come together to achieve a common goal or set of objectives
Not for profit organisation
Their common goal is based on objects rather than making a profit.
Finished goods
Those that are ready for consumers to buy and use
Market share
A businesses share of the total industry sales for a particular product
Multinational corporation
A company that has many different branches in many different countries
Eg. Apple company, or woolworths
Return on investment
A positive of negative percentage that relates the money gained or lost on an investment to the cost of the investment
Business environment
The surrounding conditions in which the business operates. Can be devised into two categories: internal and external
Internal environment
Includes the factors in which the business has some control, such as employees, managers, management style, corporate culture, and company policies
External environment
Includes factors in which the business has little control. Can be further divided into operating environment and macro environment
Operating environment
Also known as task environment. Refers to specific outside stakeholders with whom the business interacts with.
Eg. Suppliers, customers, interest groups, competitors