definitions Flashcards
Limited liability
A limited liability is a business entity that prevents individuals from being liable for the company’s financial losses and debt liabilities.
Bankrupt
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.
stock exchange
were you can bye and sell stock
dividend
the sum of money a business pays to its shareholders
breaking even
paying off all det and making a profit
Tourist arrivals
The number of visitors to a destination.
Tourist generators
countries that produce large numbers of outbound tourists
Tourism receipts
the amount of money a tourist spends in their destination country
balance of payments
the value of all goods and services produced by a country with in a given time period
economic multiplier effect
Tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect
For example a tourist will spend money in a hotel. The hotel will then purchase local products or services and employ local people. These businesses and people will then spend their money in places and the cycle continues, multiplying up each time
Leakage
The economic benefits of tourism can be lost if products and services are imported rather than locally produced.
For example, a Spanish restaurant in Brighton may import Spanish pork rather than using a local farmer, or a Hotel construction firm may import steel from China rather than using Welsh steel as it is cheaper.
Profit margin
The profit margin is a ratio of a company’s profit (sales minus all expenses) divided by its revenue.
Contribution to GDP
- the value of a country’s economy
