Key Terms Business Activity And Influences On Business Flashcards
Premises
Building used by a business
Business
Organisation that produces goods and services
Organisation
Business that has formed for a particular purpose
Goods
Physical products, such as mobile or bread
Service
Non-physical product, such as banking
Output
Amount of goods produced by a person( machine or factory )
Human Resources
Department that deals with employing,training and helping people
Consumer goods
Goods and services sold to consumers
Producer goods
Goods and services produced by one business for another
Needs
Basic requirements for human survival
Wants
People’s desires for goods and services
Infinite
Without limit ( space or time )
Finite
Having a limit
Scarce
Resources with limited availability
Private sector
Private individuals that are trying to make a profit
Public sector
Business organisations owned by local governments
Stakeholder
Group with an interest in the operation of a business
Entrepreneur
Person who sets up a business
EBITDA
Earnings before interest,tax,depreciation and amortisation
Objectives
Targets set by a business
Executives
Managers in an organisation who help make important decisions
Diversify
Increases the range of goods or services business produces
Financial return
Monetary return
Profit maximisation
Making as much profit as possible in a given time period
Shareholders
Owners of limited companies
Dividends
Share of the profit paid to shareholders in a company
Profit satisfying
Making enough profit to satisfy the needs of the business owners
Automation
Use of computers and machines instead of people to do a job
Economies of scale
Financial advantages of producing something in very large quantities
Large business
A business that employs more than 250 people
Small business
A business that employs less than 50 people
Revenue
Money from the scale of goods and services
Innovator
Someone who introduces changes and new ideas
Labour
People employed in a business
Unincorporated
Business where there is no legal difference between the owner and the business
Incorporated
Business that has a separate legal identity from that of its owners
Sole trader
Business owned by a single person
Unlimited liability
If owner of a business fails, will lose more money than invested into a business
Partnership
Business owned by between 2 and 20 people
Deep of partnership
Legal document that states the formal rights of partners
Limited partnership
Partners that help financially but do not take part in running of the business
Franchise
Structure in which a business ( the franchisor) allows another operator ( the franchisee ) to trade under their name
Merchandise
Goods that are being sold
Social enterprise
Business aims to improve human or environmental well-being ( charities )
Cooperative
Organisation in which all the people working there own an equal share of it
Consumer cooperative
Cooperative owned by its customers
Retail cooperative
Members working together to confirm their purchasing power
Worker cooperative
Cooperative that is owned by its employees
Charities
Organisation that give money to help people
Venture capitalists
Investors who provide money for business purposes
Limited companies
Business organisations that have a separate legal identity from their their owners
Chairperson
Someone who in charge of a meetings of an organisation
Certificate of incorporation
Document needed before a new company can start doing business
Private limited company (LTD)
It limited by shares. A shareholder’s personal assets are protected
Stock market
Market for shares in PLCs
Multinacional company
Large business that operates in 2 or more countries
Public limited company (PLC)
It shares are freely sold and traded
Prospectus
Document produced by a company to sell it shares to the public
Regulatory control
Official power to control an activity
Flotation
Process of a company ‘going public’
Issue ( shares )
Sale of new shares
Productivity
Rate ya which goods are produced
Public corporation
Business organisations owned and controlled by the government
Infrastructure
Basic system in organisation to work properly
Portfolio
Collection of business products
Natural monopoly
Market that have just one organisation meeting total market demand
Privatisation
Transfer of public sector resources to the private sector
Primary sector
Production involving the extraction of raw materials from the earth
Secondary sector
Production involving the transformation of raw materials into finished goods
Assembly plant
Factory where parts are put together to make a finished product
De - industrialisation
Decline in manufacturing
Brownfield sites
Areas of land that were once used for urban development
Tertiary sector
The production of services in the economy
Greenfield
Undeveloped areas of lands
Assisted areas
Areas that are denoted by a government as having economic problems
Viability studies
Careful study of how a planned activity will work
Trade bloc
Group of countries that join together and trade free of barriers
Emerging economies
Rapidly growing economies
Globalisation
Growing integration of the world’s economies
Piece rate
Payment system where workers receive an amount of money for each unit produced
Fringe benefits
‘Perks’ over and above the normal wage
Intellectual property
Creative ideas that are protectable under different forms of copyright
Monetary system
System of money in a particular country that is controlled by governments
Saturate ( market )
To offer so much product for sale than there are people that want to buy
Predator
Business that use weakness of others to get advantage
Hostile takeover
Takeover that the company being taken over doesn’t agree to
Bid
Offer to pay a particular price for something
Commodities
Product that are bought and sold
eg gold,oil,rice etc
Patents
Document giving a company the right to make a new product and stating that others is not allowed to do this
Ventures
New business activity that involves taking risks
Currency reserves
Money in foreign currency used to support its own currency and to pay off the foreign debts
Human capital
People and their skills
Enterprise
Activity of starting a business
Exploitation
Treat someone unfairly by asking them to do things for you and pay back little in return
Repatriation ( of profit )
Returning profit from a developing country to a developed country