Glossary Flashcards
Entrepreneur
Definition
A person who takes risk and organises factors of production
Added Value
Definition
The differeence between the cost of purchasing bought-in inputs (raw material) and the selling price of the finished goods.
Adding Value
Definition
Increasing the difference between the cost of purchasing the inputs and the selling price of the finished products.
Branding
Definition
The process of differentiating a product by developing a symbol, name, image or trademark for it.
Opportunity cost
Definition
The next most desired option that is given up.
The next best alternative that is forgone when making a decision.
Intrapreneur
Definition
A business employee who takes direct resposibility for turning an idea into a profitable new product or business venture.
Customer
Definition
An individual consumer or organisation that purchases goods or services from a business.
Consumer
Definition
An individual who purchases a good or service for personal use.
Factors of production
Definition
The resources needed by business to produce goods and services
Capital goods
Also give examples
The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.
Business plan
Definition
A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecast.
Multinational business
Definition
A business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.
Primary sector business
Definition
Firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed.
Secondary sector business
Definition
Firms that manufacture and process products from natural resources, including computers, brewing, baking, clothes-making and construction.
Tertiary sector business
Definition
Firms providing services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels and tourism.
Quaternary sector business
Definition
Business providing information services, such as computing, web design, ICT, management consultancy and R&D
Private limited company
Definition
A business that is owned by shareholders who are often members of the same company; this company can not sell shares to the general public.
Initial Public Offering(IPO)
Definition
An offer to the public to buy shares in a public limited company
Public Limited Company
Definition
A company whose shares are traded on a stock exchange and can be bought and sold by public.
Deindustrialisation
Definition
Decline in the primary sector and secondary sector and increase in the importance of the tertiary and quaternary sector.
Difference between Unincorporated and incorporated
Definition
Unincorporated business has unlimited liability and vise versa
Legal personality - incorporated business can sue and be sued, company itself can be taken to court.
Continuity - the death of an owner or director does not lead to its break-up or dissolution.
Public corporation
Definition
A business enterprise owned and controlled by state
Sole Trader
Definition
A business in which one person provides the permament finance and, in return, has full control of a business.
Unlimited Liability
Definition
Business owners have full legal responsibility for the debts of the business.
Partnership
Definition
A business formed by two or more people carry on a business together, with shared capital investment and, usually, shared responsibilities.
Limited Liability
Definition
The only liability a shareholder has if company fail, is the amount invested in the company
Share
Definition
A certificate confirming part-ownership of a company
Shareholder
Definition
A person or institution owning shares in a limited company
Cooperative
Definition
A jointly owned business operated by members for their mutual benefit, to produce or distribute goods or services
Franchise
Definition
The legal right to use the name, logo, and trading system of an existing successful business.
Joint Venture
Definition
Two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
Social Enterprise
Definition
A business with mainly social objectives that re-invest most of its profits into benefiting society.
