General Definitions Flashcards
Define a business
The organised effort of individuals to produce and sell, for a profit, the products that satisfy individuals’ needs and wants
Define product
A good or service that can be bought or sold
Define good
An item that can be seen or touched (tangible)
Define service
A thing done for you by others
Define finished product
A product that is ready for customers to buy and use
Define production
Activities undertaken by the business that combine the resources to create products that satisfy customers’ needs and wants
Define shareholders
People who are part owners of a company because they own a number of shares
Define dividend
A part of a business’s profit that is divided among shareholders
Define research and development (R&D)
A set of activities undertaken to improve existing products, create new products, and improve production
Define market share
The business’s share of the total industry sales for a
particular product
Define transnational (multinational) corporation (TNC/MNC)
A business that has branches in various different countries whereby finance, assets, technology, information, employees and goods and services flow freely from one country to another
Define a small to medium enterprise, according to the ABS
Firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover according to the Australian Bureau of Statistics
Define a micro business, according to the ABS
A business that employs fewer than 5 people (including the owner)
Define geographical spread
The presence of a business and the range of its products across a suburb, city, state or country or the globe
Define local business
A business with a very restricted geographical spread; it serves the surrounding area; frequently used by consumers who live nearby
Define national business
A business that operates within just one country
Define primary industry
Businesses in this industry are involved in the collection of natural resources
Define secondary industry
Businesses in this industry are involved in taking a raw material and making it into a finished or semi-finished product
Define tertiary industry
Businesses in this industry are involved in performing a service for other people
Define quaternary industry
Businesses in this industry are involved in providing services that involve the transfer and processing of information and knowledge
Define quinary industry
Businesses in this industry are involved in providing all services that have traditionally been performed in the home
Define incorporated
The process businesses go through to become a registered company and a separate legal entity from the owner(s)
Define unincorporated
The business has no separate legal existence from its owner/s; sole trader or partnership. When the owner dies, so too does the business entity
Define privatisation
The process of transferring the ownership of a government business to the private sector