homework

Question 1

dividends

Answer 1

portion of profits split between shareholders

Question 2

ethical

Answer 2

morally good treatment (treat workers well)

Question 3

fair trade

Answer 3

buying raw material at a good price that allows a reasonable standard of living for suppliers (above market price)

Question 4

growth (company growth)

Answer 4

increase of revenue over time (increase of sales)

Question 5

limited liability

Answer 5

shareholders can only lose money invested in company
not entire personal wealth
(ltd and plc)

Question 6

market capitalisation

Answer 6

value of company as measures by the stock market
(number of shares x share price)

Question 7

mission

Answer 7

main purpose of an organisation

Question 8

non-profit organisations

Answer 8

incorporated organisation that exists for members or as a charity (no share holders)

Question 9

objective

Answer 9

short-term specific measurable target

Question 10

LTD

Answer 10

limited liability, shares aren’t open for public buy, decisions made buy owners (small/medium sized firms)

Question 11

private sector

Answer 11

organisation that isn’t government run or owned

Question 12

profit

Answer 12

revenue - costs

Question 13

public sector organisations

Answer 13

government-owned organisations

Question 14

PLC

Answer 14

large firm who’s shares can be bought by public, owners appoint managers to run business

Question 15

revenue

Answer 15

income generated by sales

Question 16

revenue formula

Answer 16

items sold x cost

Question 17

share

Answer 17

certificate part owning company, dividends, voting rights

Question 18

shareholder

Answer 18

part-owners of business who can vote at the AGM, receive dividend

Question 19

sole trader

Answer 19

company run by one person, unlimited liability, all debts

Question 20

a business

Answer 20

organisation that exists to provide goods ad services on a commercial basis

Question 21

transformation process

Answer 21

what happens inside the business. this is where value is added to inputs to create outputs

Question 22

CELL

Answer 22

capital, enterprise, labour, land

Question 23

added value formula

Answer 23

selling price - cost of materials, components and services

Question 24

SMART

Answer 24

specific, measurable, achievable, relevant, time bound

Question 25

fixed costs

Answer 25

costs that don’t change directly with level of output

Question 26

variable costs

Answer 26

costs that change directly with output. increase by a set amount each time a new unit is made

Question 27

total cost formula

Answer 27

fix costs + variable costs