homework Flashcards
what are dividens
a portion of the firm given to shareholders
Ethical
Morally correct behaviour.g treating workers and the environment well.
Fair trade
Buying raw materials at a price that allows a reasonable standard of living for the suppliers and often above at the market price.
Growth(company growth)
The increase over time of the revenue of a business. Economic growth refers to the increase in size of the whole economy.e the sales of all the businesses in a nation.
Limited liability
shareholders can only lose the money invested in the company not their entire personal wealth if the business collapses with debts. Limited liability is shown by either Ltd or plc
Market capitalisation
the value of a company as measured by the stock market
Market capitalisation = no. shares x share price
mission
the main purpose of an organisation
Non profit organisations
An organisation which extists for the interests of its members or as a charity, so there are no shareholders only trustees benefit financially e.g Kimbolton School
objective
Short term specific measurable target. E.g 1m sales next month
Private limited company
A limited liability business where sales are not freely available for sale, decisions can be made by the owners. They are usually small or medium sized firms but there are exceptions e.g virgin
Private sector
An organisation that is not government run or owned.
Profit
The difference between a firms revenues from its trading activities and its total costs. It Is a reward for risk and a return on capital invested
Profit formula
Profit=revenue- total costs
Public sector organisations
Government- owned organisations
Public limited companies
Large firms whose shares can be bought and sold by the general public on the stock exchange. The owners appoint managers to run the business.
revenue
the income generated by the sales of a product
revenue formula
Revenue= price x quantity sold
share
A certified indicating part ownership of a company. The share entitles the holder to receive dividend and voting rights to affect the way the firm is run.
shareholder
Part owners of a business who can vote at the AGM and receives dividend
Sole trader
An individual who runs a business. She/he operates under unlimited liability so are personally responsible of all business debts
A business
An organisation that exists to provide goods and services on a commercial basis to customers.
The transformation process
describes what happens inside the business. This is where value is added to inputs to create outputs.
what is cell
Capital, Enterprise, Land, Labour
what is the added value formula
Added value= selling price- the cost of bought in materials, components and services
What is SMART
specific, measurable, achievable, relevant, time bound.
Fixed costs
Costs that do not change directly with the level of output
Variable costs
Costs that change directly with output. They will increase by a set amount each time a new unit is made.
what is the total costs formula
Total costs = fixed costs + variable costs
