Key Words Flashcards
What is land?
The natural resources available for the enterprise, providers of this receive rent
What is labour?
Human input into a production process
What is capital?
Man made goods that are used for the production of other goods
What is entrepreneurial spirit?
People who risk their own finances and make business decisions
What is demand?
The amount of products consumers are willing to purchase at a given price
What are wants?
Things that are not vital for survival, but make life easier or more pleasant
What are needs?
Things vital for survival
What is the developed world?
Where everyone is entitled to the basic needs in the developed world these are available to nearly everyone
What is GDP?
Total value of goods and services produced by country every year
What is the third world?
A place in the world where the five basic needs are rarely available
What is disposable income?
Money to spend after taxes are paid
What is a wholesaler?
Someone who provides a link between the producer and the retailer
What is profit?
The selling price taken away from the cost of production
What is the chain of production?
The stages from raw materials to the finished product
Who are the consumers?
The people who buy the goods and services
What are the five basic needs?
Water food shelter warmth clothes
What is opportunity cost?
When we have to make a choice between two things because there is only enough money to do one of them, the one you don’t do you is the opportunity cost
What is choice?
When resources can be allocated in various ways
What is trade?
The exchange of goods and services for money
What is barter?
Exchanging good for other goods without the use of money
What is the customer?
A person who buys goods and services from a supplier
What is demand
You amount of a product that will be bought at a specified price at a given time
What are resources?
Everything that is needed to produce goods and services
What is scarcity?
Is exist when the resources available are not sufficient to supply human wants
What is the economy?
A system in a country that ensures the people survive
What are the three main types of economy?
Planned economy
mixed economy
market economy
What is planned economy
Things that are government owned and government run
What is mixed economy
Some is government owned and some is owned by individuals
What is market economy
Run by the people who make the decisions and own it
What is a sole trader / proprietor?
A small business that is owned and financed by one person
What is liability
Unlimited liability means they are responsible for their debts, they may have to sell private and personal possessions to pay this off
What is tax?
A compulsory payment to the government taking from workers wages and businesses profit
What is a partnership
A business that can have a minimum of two owners and a maximum of 20
What is internal growth?
A business increases in size without joining with another business
Growth is shown by a higher sales turnover and usually more profit
What is external growth?
When businesses join together to form a larger business
What is a merger?
When two or more businesses agree to join together to form a larger business
Are usually similarly sized businesses
What is a takeover?
When one business buys another business
big businesses usually buy smaller businesses
may be agreed and the business being bought is happy with the agreement
may be contested where the business does not want to be bought out
What is acquisition?
This usually means the business buys just part of another business
What is a joint-venture?
When businesses join to sell a product together
What is horizontal integration?
Went two businesses join together that make or sell the same products at the same stage of the chain of production
What is vertical integration?
When one business joints with another somewhere in its chain of production
What is recruitment?
The process by which a business hires staff
What is induction?
The sessions given to new workers when they first start work
What is a co-operative?
Businesses that have objectives other than making a profit. Usually aim to support the community, and encourage ethical business practices.
What is a franchise?
An arrangement in which a well known businesses name is sold of to an individual or company who can then start trading under that name.
What is the franchisor?
The business selling the right to trade it product or service
What is the franchisee
The company / person buying the franchise
