Chapters 1-4 Flashcards
Ch1.p4. Premises
Buildings and land used by a shop or business
• e.g. factory and shops
Business
Organisation that produces goods and services
Organisation
Group, such as a club or business, that has formed for a particular purpose
Goods
Physical products, such as mobile phone, a packet of crisps or a pair of shoes
Services
Non-physical products, such as banking, car washing and waste disposal
Output
Amount of goods or work produced by a person, machine or factory
Human Resources
In some businesses, the department that deals with employing, training and helping people
Consumer goods
Goods and services sold to ordinary people (consumers) rather than businesses
Producer goods
Goods and services produced by one business for another
Needs
Basic requirements for human survival
Wants
People’s desires for goods and services
Infinite
Without limits in space or time
Finite
Having an end or a limit
Scarce
Resources with limited availability
Private sector
Business organisations owned by individuals or groups of individuals
• e.g. apple or porche
Public sector
Business organisations owned and controlled by central or local government
• e.g. public schools or health
Stakeholder
an individual or group with an interest in the operation of a business
Entrepreneur
Person who takes risks and sets up
EBITDA
earnings before interest, tax depreciation and amortisation
Objectives
Goals or targets set by a business
Executives
Managers in an organisation or company who help make important decisions
Diversify
If a business, company or country diversifies, it increases the range of goods or services it produces
Financial return
Monetary return
Profit maximisation
Making as much profit as possible in a given time period
