Key Terms Flashcards
Goods
An item that a customer wants or needs.
You can touch the product.
Primary sector business
Extract raw materials from natural resources
Secondary Sector Business
Take the raw material (eg.steel) and turn them into a final product (eg.car)
Tertiary Sector Business
Provide a service (eg.Tesco)
Who owns the business (sole trader)
The sole trader
Number of owners (sole trader)
1
What liabilities are there (sole trader)
Unlimited liabilities
What happens if the owner dies (sole trader)
The business ends
Who owns the business (partnership)
The partners
Number of owners (partnership)
2-20
What liability is there (partnership)
Unlimited liability
How is the business established (partnership)
The deed of partnership
What is the deed of partnership
A legal document that sets the rules
Who owns the business (Private Limited Company)
Shareholders
Number of owners (Private Limited Company)
Multiple
Who controls the business (Private Limited Company)
Shareholders
What liability is there (Private Limited Company)
Limited liability
What happens if the owner dies (Private Limited Company)
The company still exists and whoever owns the share now continues with the business
Who is an entrepreneur
An entrepreneur is someone who is willing to take the risks involved in starting a business. Entrepreneurs believe that the rewards of starting a business are worth risks and costs involved
Whats a service
A service is providing work performed in an expert manner builder
Customers
An individual or business that purchases the goods or services produced by a business
What is a public limited company
A public limited company is one that has shares that are sold to the general public
Define consumer
A purchaser of a good or service in retail
Define need
Necessities that are provided by a business eg food, warmth, shelter, love and clothing
Define Want
Luxuries that customers buy from a business
Define interdependence
When one type of business depends on another
Define unlimited liabilities
Where personal belongings of the owner are at risk if there are any problems. There is no limit to the amount of money that the owner has to pay out eg lose your car, home etc.
Define unique selling point (USP)
Something about your product/service is different from competitors which makes it stand out
Define stakeholders
A person or group of people who have interests or are impacted by a company
Define franchisor
Selling the rights to a business
Franchisee
Buying the rights to a business
Define digital communication
The transmission of information electronically between computing devices
Define ethics
Refers to whether a business decision is thought to be MORALLY RIGHT or WRONG. An ethical decision is made on the basis on what is judged to be morally right
The economy
The economy is made up of millions of individual consumers, many thousands of businesses and governments all take decisions on what to buy and produce
Define unemployment
Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy
Define consumer spending
Refers to the value of goods and services bought by consumers over a time period, usually a month or year
Define Globalisation
The trend for markets to become worldwide in scope it is where world economics are inter connected
Define Import
A good or service purchased from overseas customers in the domestic market
Define export
A good or service produced in the uk and sold overseas
Define legislation
A set of rules that governs a way the society operates it is another term for laws
