Enterprise Flashcards
What is business objectives
Are measurable targets set by the business, such as sales or profits that have to be within a given time period
Transformation process
Involves converting inputs into outputs
Factors of production
And name 4 Inputs
Are the inputs into the transformation process of a business ( Land , labour , capital , enterprise)
What is the Primary sector
Is the first stage of production and includes extracting or growing resources. Farming/ mining / fishing
What is Adding value
Occurs in a transformation process when outputs are produced that are worth more than the inputs brought in to provide them
Brand
Is a name, design, logo, symbol or indeed anything that makes a product recognisable and distinguishes it from the competition in the eyes of the customer.
Market forces
Are the forces of supply and demand which determine the price of a product and the quality and the quantity bought and sold in a market
Opportunity cost
Measures the sacrifice made by choosing one option in terms of the next best alternative for the business
Entrepreneurs
Are individuals who take the risk to create or start a new business or project
Enterprise
Is the skill needed to make a new idea work
Intrapreneurs
Are people within an established business who think and act like entrepreneurs
Nationalisation
Occurs when a government takes ownership of a business from the private sector into the public sector
Privatisation
Occurs when a government transfers ownership of a business from the public sector to the private sector
Merit goods
Are goods or services such as education whose benefits individuals may not fully appreciate.
Unlimited liability
Occurs when an individual or groups of individuals are personally responsible for all the actions of their business. They can lose their personal assets if the business has financial problems
Company
Is a business organisation which has its has its own legal identity and which has limited liability
Shareholders
Are persons or organisations that own a part of a company
Limited liability
Means that investors can lose the money they have invested into the business but their personal possessions are safe. ( limits to their risks )
Franchise
Occurs when a franchiser sells the rights to use or sell their products to a franchise.
Niche
Is a small segment of a market
Objective
Is a target that is measurable and has given timescale
Labour productivity
Measures the output per time period of an employee
Corporate objective
Is a target set for the business as a whole
Market share
Measures a businesses sales as a percentage of the total market sales
Cash flow
The movement of cash into and out of a business over a time period
Ethics
Are moral principles that can shape the way a business behaves
Social responsibility
Is a philosophy under which businesses consider the interests of all groups in society as a central part of their decision making
Mission statement
Sets out the overall purpose of a business
Aim
A long term goal that determines the objectives that an organisation sets itself
Strategy
Is the long term plan to achieve the objective of a business
Tactics
Are the short term actions needed to implement the strategy
Target
A goal pursued by a business such as achieving a particular market share or rate of growth of sales
Ethical behaviour
Behaviour that is thought to be morally correct and not necessarily most profitable
Stakeholders
Are groups of individuals who have an interest in a business
Authority
Is the power or ability to carry through a task or action
Internal stakeholders
Are Individuals and groups within a business eg employees
External stakeholder
Are groups outside of the business for example people who live near the business premises
Dividends
Is money that is paid out of profits to shareholders. ( reward to the owners of the business)
