Key Terms Flashcards

1
Q

Chain of Production

A

Stages a product goes through from raw material to finished good

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2
Q

Interdependence

A

The way in which businesses in different sectors depend on each other

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3
Q

De-Industrialisation

A

The reduction of importance in the secondary sector

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4
Q

Added Value

A

When a business increases the value of a product

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5
Q

Business Objectives

A

What the business in trying to achieve

ie Growth, Survivial, Profit

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6
Q

Satisficing

A

The business will make enough profit to meet its needs, and not as much as possible

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7
Q

Dividend

A

Payment made to shareholders from profits

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8
Q

Market Share

A

Amount of a market a business controls, %

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9
Q

Private Sector

A

Business activity owned by private individuals

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10
Q

Public Sector

A

Business activity controlled by local or national government

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11
Q

Stakeholders

A

People who have an interest in the business

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12
Q

Incorporated

A

A limited company owned by shareholders, with limited liability (owner separate from business)

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13
Q

Unincorporated

A

Has unlimited liability

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14
Q

Co-operatives

A

Trading organisation where a number of independent producers work together

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15
Q

Sole Proprietor

A

One person owns a business

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16
Q

Partnership

A

Between 2 and 20 people own a business

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17
Q

Unlimited Liability

A

Owners are responsible for all the debts

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18
Q

Limited Liability

A

Owner does not risk losing personal possessions in order to pay off debts

19
Q

Bankruptcy

A

Affects unincorporated businesses where their liabilities are greater than their assets

20
Q

Insolvency

A

Affects limited companies where their liabilities are greater than their assets

21
Q

Ltd

A

A business owned by shareholders who are usually family and friends

22
Q

PLC

A

A business owned by shareholders, who buy their shares on the stock exchange

23
Q

Merger

A

2 or more businesses join together to make a larger business

24
Q

Take-Over

A

One business buys control of another

25
Conglomerate
Merger or takeover of another business in a totally different business activity
26
Diversification
A process of spreading risk by reducing dependence on one product or service
27
Footloose
A business is able to locate anywhere it chooses
28
Uniform Business Rate
Tax paid by businesses to cover provision of local services
29
Grants
Payment of money from the government which doesn't have to be paid back
30
Infrastructure
Roads, power supplies, water supplies
31
Economies of Scale
Increase in scale of production reduces average cost per product
32
Sleeping Partner
A person who invests capital but takes no active part in running a business
33
Deed of Partnership
Legal agreement between partners stating their responsibilities
34
LLP
Limited liability partnership
35
Registrar of Companies
Maintains records of all limited companies
36
Board of Directors
Elected by shareholders to run the company
37
AGM
Annual general meeting | When directors are elected
38
Managing Director
Responsible for putting into action decisions made by directors
39
Institutional Investors
Banks and investment companies who own a large part of a company
40
Franchise
Marketing arrangement that allows another business to trade in the same style as an existing business
41
Royalty
Payment made to franchisor based on sales and revenue of the franchise
42
Globalisation
The world interdependence of business activity
43
Multinational Company
Operates in several countries
44
Public Corporation
An organisation owned by the national government | ie BBC