Introduction To Business Enterprise Flashcards
International business
Business activities that straddle two or more countries.
For-profit organisations
Businesses that aim to make money.
Non-for-profit organisations (NPO)
Organisations such as charities, which exist for the purpose of promoting good causes, rather than to make a profit.
Social enterprise
An enterprise that lies somewhere between the for-profit and the NPO, aiming to make money but using it mainly for social causes.
Market
A location where exchange transactions take place, either with formal standing or informality.
Emerging economies/markets.
Fast-growing developing countries.
BRIC Countries
Collective reference to Brazil, India, Russia and China, which are grouped together loosely as emerging economies.
Segment
In marketing, a group of identifiable consumers, such as an age group, socioeconomic group or culturally distinct group.
Stakeholder
Broad category including individuals, groups and even society generally, that exerts influence on the company or that the company is in position to influence.
Outsourcing
The process by which an owner contracts out to another firm a business process, such as product manufacturing or a business service, usually under a licence agreement.
Corporate social responsibility (CSR)
An approach to business which recognises that the organisation has responsibilities in society beyond the economic role, extending to legal, ethical, environmental and philanthropic roles.
Sustainability
The principle that business should be carried out in ways which do not cause a detriment to the ability of future generations to fulfil their needs.
Entrepreneur
A person who starts up a business and imbues it with the energy and drive necessary to compete in markets.
Sole trader
The person who is in business on his or her own account, also referred to as self employed person.
Small to medium size enterprise (SME)
Business ranging from micro-enterprises of just one person to firms with up to 249 employees.
Born-global firm
SME which aims to become global from the outset, often in a high-technology sector.
Franchising
Business agreement by which a business uses the brand, product and business format of another firm under licence.
Company
A legal form of an organisation which has separate legal identity from its owner(s); also called a corporation.
Shareholders
Legal owners of a company, known as ‘members’ who enjoy rights such as receiving dividends from company profits.
Equity
In corporate finance, the share capital of a company.
Limited liability
Principle that the shareholder is liable up to the amount invested in the company.
Private limited company
Company who’s shares are not publicly traded in a stock exchange.
Public company
Company which lists on a stock exchange and offers shares to the public.
Initial public offering (IPO)
First offering by a company of its shares to the public on a stock exchange; also known as ‘flotation’.
Rights issue
For a company, a means of raising capital whereby existing investors are asked to increase their investment.
Multinational enterprise (MNE)
An organisation which acquires ownership or other contractual ties in other organisations (including companies and unincorporated businesses) outside its home country.
Transnational corporation (TNC)
A company which owns and controls operations in one or more countries other than its home country.
Affiliates
Organisations connected through ownership or other strategic ties to an MNE.
Subsidiary company
A company owned wholly or substantially by another company, which is in a position to exert control.
Privatisation
Process of transforming a state owned enterprise into a public company and selling off a proportion of shares to the public, usually while retaining a stake and a controlling interest by the government.
Sovereign wealth fund
Entity controlled by a government, which invests state funds and pursues as investment strategy; often active global financial markets.
Corporate governance
A company’s structure and process for decision making at the highest level.
Organisation for economic co- operation and development (OECD)
Organisation of the worlds main developed economies which supports market economies and democratic institutions.
Directors
People appointed by the company to bear ultimate responsibility for the company’s activities.
Co-determination
Principle of stakeholder participation in corporate governance, usually involving a two tier board, with employee representation in the supervisory board.
Executive directors
Directors who actively manage the company
Chief executive officer (CEO)
The company’s senior executive, who oversees its management and is accountable to the board of directors.
Non-executive directors
Part-time company directors who are independent of the firms management and owners.
Functions
Activities of a business which form part of the overall process of providing a product for a customer.
Business
Any type of economic activity in which goods or services (or a combination of both) are supplied in exchange for some payment, usually money.
