Key Business terms Test 1 Flashcards
Enterprise
The process by which new businesses are formed in order to offer products and services in a market.
Entrepreneur
An individual who sets up and runs a new business and takes on the risks associated with the business.
Product
A commercially distributed good.
Service
work that supports a business but does not produce a tangible commodity
Business to Business (B2B)
Exchange of products and services between businesses.
Opp cost
The cost of a decision measured by the benefits foregone of the next best alternative.
The unavoidable trade-offs in the presence of scarcity: satisfying one objective more means satisfying other objectives less
SMEs
small to medium-sized enterprises
Stakeholder
A person, group or organisation with an interest in the activities of a business.
Shareholder
An owner of shares in a company.
Consumer
an individual who purchases and pays for a product or service and consumes it, the end user.
customer
the person or business who buys a product or service
Business plan
A detailed description of a business, including the companies strategy, aims and objectives, marketing & financial plan.
Sole trader
A one-person business with unlimited liability for the debts of that business.
partnership
A business where there are two or more owners of the enterprise.
Ltd
a business that is owned by its shareholders which have limited liability for their debts, run by directors (limited liability company)
PLC
A company that is able to offer its shares to the public (Public limited company).
Social Enterprise
Businesses with primarily social objectives whose surpluses are reinvested for that purpose in the business or community
Limited liability
Shareholders are only liable for the money they have invested.
Unlimited liability
being personally liable for the repayment of debts in full of the business.
Business to consumer (B2C)
Where businesses sell directly to consumers.
