definitions Flashcards
What is a business
Organization that produces goods and services
What is an organization
Group that has formed for a particular purpose
What is output
Amount of goods produced or work produced by a person, machine or factory
What are consumer goods
Goods and services sold to ordinary people rather than businesses
What are producer goods
Goods and services produced by one business for another
What are needs
Basic requirements for human survival
What are wants
People’s desires for goods and services
What is the private sector
Business organizations owned by individuals or groups of individuals
What is the public sector
Business organizations owned by central or local government
What is a stakeholder
An individual or group with an interest in the operation of a business
Who is an entrepreneur
person who takes risks and sets up businesses; individual who organizes the other factors of production and risks their own money in a business venture
What are objectives
Goals or targets set by a business
What is EBITDA
Earnings before interest, tax, depreciation and amortisation
Who is an executive
Managers in an organization or company who help make important decisions
What does it mean to diversify
Increase the range of goods or services a business, company or country produces
What is financial return
Monetary return
What is profit maximisation
Making as much profit as possible in a given time period
What are shareholders
Owners of limited companies
What are dividends
Share of the profit paid to shareholders in a company
What is profit satisficing
Making enough profit to satisfy the needs of the business owner(s)
What is automation
Use of computers and machines instead of people to do a job
What are economies of scale
Falling average costs when producing something in very large quantities
What is a large businss
A business that employs more than 250 people
What is a small business
A business that employs fewer than 50 people
What is revenue
Money from the sale of goods and services
Who is an innovator
Someone who introduces changes and new ideas
What is labour
People employed in a business/used in production
What is unincorporated
Businesses where there is no legal difference between the owner and the business
What is incorporated
Business that has a separate legal identity from that of its owners
Who is a sole trader
Business owned by a single person
What is unlimited liability
Owner of a business is personally liable for all business debts
What is a partnership
Business owned by between 2-20 people
What is the deed of partnership
Binding legal document that states the formal rights of partners
What is a limited partnership
A partnership where some partners contribute capital and enjoy a share of the profit but do not take part in the running of the business
What is limited liability
Business owner is only liable for the original amount of money invested in the business
What is a franchise
Structure in which a business (franchisor) allows another operator (franchisee) to trade under their name
What is merchandise
Goods that are being sold
What is a social enterprise
Business that aims to improve human or environmental well being
What is a cooperative
Company, factory, or organization in which all the people working there own an equal share of it
What is a consumer cooperative
Cooperative that is owned by its customers
What is a retail cooperative
Cooperative of retail members, who often work together to assert their purchasing power
What is a worker cooperative
Cooperative that is owned by its employees
What are charities
Organizations that give money, goods or help to people who are poor, sick or in need
Who are venture capitalists
Specialist investors who provide money for business purposes
What are limited companies
business orgaanizations that have a seperate legal identity from that of its owners
what is limited liability
Shareholders are legally responsible for the debts of a company according to how many shares they own
Who is a chairperson
Someone who is in charge of a meeting or directs the work of a committee or organization
What is the certificate of incorporation
document needed before a new company can start doing business
What is a private limited company
A private company limited by shares, the liability of the shareholders to creditors of the company is limited to the capital originally invested, a shareholder’s personal assets are protected, and with limited after its name
What is a public limited company
A limited company whose shares are freely sold and traded, with a minimum share capital of 50,000 pounds and PLC after its name
What is a prospectus
document produced by a company that wants the public to buy its shares
What is regulatory control
Official power to control an activity and to make sure that it is done in a satisfactory way
What is a flotation
Process of a company ‘going public’
What is a multinational company
A large business with significant production or service operations in two or more countries
What is the issue of shares
sale of new shares
What is productivity
Rate at which goods are produced, and the amount produced, especially in relation to the work, time and money needed to protect them
What are public corporations
Business organizations owned and controlled by the state/government
What is a portfolio
Collection of business interests or products
What is infrastructure
Basic systems and structures that a country or organization needs in order to work properly
What is a natural monopoly
Market where it is more efficient to have just one organization meeting total market demand
What does it mean to subsidise
Paying part of the costs
What is privatisation
Transfer of public sector resources to the private sector
What is the primary sector
Production involving the extraction of raw materials from the earth
What is the secondary sector
Production involving conversion of raw materials into finished and semi finished goods
What is an assembly plant
Factory where parts are put together to make a finished product
What is the tertiary sector
Production of services in the economy
What is de-industrialisation
Decline in manufacturing
What is fracking
The process of injecting liquid at high pressure into subterranean rocks, etc to force open existing fissures and extract oil or gas
What are brownfield sites
Areas of land that were once used for urban development
What are greenfield sites
Previously undeveloped areas of land, usually on the outskirts of towns and cities
What are assisted areas
Areas that are designated by a government as having economic problems and are targeted to recieve support in a variety of forms
What is a trade bloc
Group of countries situated in the same region that join together and enjoy trade free of barriers
What are emerging economies
Rapidly growing economies, they have huge growth potential but also pose significant risks
What is globalisation
Growing integration of the world’s economies
What is intellectual property
People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
What is a monetary system
System of money in a particular country or the world as a whole, and the way that it is controlled by governments and central banks
What is a saturated market
To offer so much of a product for sale that there is more than what people want to buy
What is a predator
Business that tries to use another’s weakness to get advantages
What is a hostile takeover
Takeover that the company being taken over does not want or agree to
What is a bid
Offer to pay a particular price for something
What are ventures
New business activity that involves taking risks
What are commodities
Products that are bought and sold
What are patents
Legal documents giving a person or company the right to make or sell a new invention, product or method of doing something and stating that no other person or company is allowed to do this
What are currency reserves
Money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts
What is human capital
People and their skills
What is an enterprise
The activity of starting and running businesses
What is exploitation
Situation in which you treat someone unfairly by asking them to do things for you, but give them very little in return
What are repatriation of profits
Where a multinational returns the profits from an overseas venture to the country where it is based
What is a surplus
Amount of something that is more than what is needed or used
What are exports
Goods and services sold overseas
What are imports
Goods and services bought from overseas
What is visible trade
Trade in physical goods
What is invisible trade
Trade in services
What is balance of trade or visible balance
Difference between visible exports and visible imports
What are transactions
Business deals or actions such as buying or selling something
What is an exchange rate
Value of one currency in terms of another
What is a commission
Extra amount of money that is paid to a person or organisation according to the value of goods they have sold or the services they have provided
What is uncertainty
When you feel doubt about what will happen
what is a legal framework
Structure of a society, or a legal or political system
What is a fiscal policy
Using changes in taxation and government expenditure to manage the economy
What are anti competitive practices
Attempts by firms to prevent or restrict competition
What is a merger
When two or more businesses join together to form one new firm
What is protectionism
Use of trade barriers to protect domestic producers
What are infant industries
New industries that are yet to be established
What is dumping
Where a business sells goods in another country often below cost
What are trade barriers
Measures designed to restrict trade
What is a quota
Physical limit on the quantity of imports allowed into a country
What is a subsidy
Financial support given to a domestic producer to help compete with overseas firms
What is interest
Price of borrowed money and the reward to savers
What is a monetary policy
Using changes in interest rates and the money supply to manage the economy
What is a budget
An official statement that a government makes about how much it intends to spend and what the rates of taxes will be for the next year or six months
What are tax allowances
Part of income that is not taxed
What are budgetary measures
Actions taken by the government to influence business and the economy
What is urbanisation
Process of constructing more and more buildings on rural land
What does it mean to be capital intensive
Use of relatively more machinery than labour in production
What is sustainable development
Idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations
What is capital employed
Amount of money invested in a business
What is overtrading
Taking on more work than a business can afford to fund effectively
What is inventory
Stock of goods
What are fixed assets
Resources that are used repeatedly for a period of time by a business
What is a downturn
Period of process in which business activity, production, etc is reduced and conditions become worse
What does it mean to be undercapitalised
Starting a business with insufficient capital
What is outcompeted
Perform more effectively in a particular field
What is “overdue”
Money that has not been paid by the time expected
What are communication channels
Routes along which information might travel in a business
What is communication
Sending and recieving of messages
What is downward communication
Passing messages from the top of the organisation to those at the bottom
What is upward communication
Passing messages from the bottom of an organisation to those at the top
What is horizontal communication
Exchange of information between parties on the same level in an organisation’s hierarchy
What is internal communication
Communication between people inside the business
What is external communication
Communication between the business and those outside
What is formal communication
Use of recognised channels when communicating
What is informal communication
Use of non-approved channels when communicating
What are communication barriers
Obstacles that prevent effective communication between the sender and the reciever
What is redeployment
Moving someone or something to a different place or job
