key terms Flashcards
what is an entrepreneur?
someone willing to take risks in starting a new business
What is entrepreneurship
ability to be an entrepreneur
what is a social enterprise?
a business set up to help society rather than make a profit
what is enterprise?
business, refers to skills of people within the business to identity business opportunity
what is opportunity cost?
the alternative option given up when resources are spent in another way
what is interest?
the money paid by banks as a reward to attract people to save money with them
what is the primary sector?
organisations that extract the earth’s resources
what is the secondary sector?
organisations that use raw materials to manufacture goods + construct stuff
what is the tertiary sector?
organisations that provide services to consumers + other organisations
what are interest rates?
the cost of borrowing money / rewards for saving money expressed in percentage
what is inflation?
the rate at which prices are increasing
what is GDP (gross domestic product?)
measures all the income earned in a country’s economy in a year
what is demand?
amount of a product that customers wish to purchase at the current price over a period of time
what is a company?
a business with it’s own legal identity
what is a shareholder
person/organisation that owns a share (part of) of the company
what is limited liability
when the owner’s responsibility for business’ debts is only limited to what they invested
what is a ltd?
private limited company - business owned by it’s shareholders who’s shares cannot be freely traded
what is a plc?
public limited company - large business owned by it’s shareholders and it’s shares can be freely sold on the stock market
what is flotation
when a ltd becomes a plc and has it’s shares listed on Stock Exchange
what are directors?
they lead management of the company - appointed by shareholders
what is a share issue?
when a company sells additional shares in the business
what is a not for profit organisation?
a business set up to achieve an objective besides profit (eg charity)
what is an asset?
it is something owned by a business like land or buildings (any possession)
what are social objectives?
the objectives of a business intending to help society
what is an aim
general goal
what is an objective
specific target set to be achieved
