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)
