homework Flashcards
dividends
portion of profits split between shareholders
ethical
morally good treatment (treat workers well)
fair trade
buying raw material at a good price that allows a reasonable standard of living for suppliers (above market price)
growth (company growth)
increase of revenue over time (increase of sales)
limited liability
shareholders can only lose money invested in company
not entire personal wealth
(ltd and plc)
market capitalisation
value of company as measures by the stock market
(number of shares x share price)
mission
main purpose of an organisation
non-profit organisations
incorporated organisation that exists for members or as a charity (no share holders)
objective
short-term specific measurable target
LTD
limited liability, shares aren’t open for public buy, decisions made buy owners (small/medium sized firms)
private sector
organisation that isn’t government run or owned
profit
revenue - costs
public sector organisations
government-owned organisations
PLC
large firm who’s shares can be bought by public, owners appoint managers to run business
revenue
income generated by sales
revenue formula
items sold x cost
share
certificate part owning company, dividends, voting rights
shareholder
part-owners of business who can vote at the AGM, receive dividend
sole trader
company run by one person, unlimited liability, all debts
a business
organisation that exists to provide goods ad services on a commercial basis
transformation process
what happens inside the business. this is where value is added to inputs to create outputs
CELL
capital, enterprise, labour, land
added value formula
selling price - cost of materials, components and services
SMART
specific, measurable, achievable, relevant, time bound
fixed costs
costs that don’t change directly with level of output
variable costs
costs that change directly with output. increase by a set amount each time a new unit is made
total cost formula
fix costs + variable costs
