Key Words Flashcards
Premises
buildings and land used by a shop or business
Business
An organisation that produces goods and services
Organisation
group, such as a club or business that was formed for a particular purpose
Goods
Physical, tangible products (eg. movil phones)
Services
Non-physical, intangible products (eg. Car washing)
Output
The goods or work produced by a person, machine or factory
Human Resources
In some businesses, the department that deals with employing, training and helping people.
Consumer goods
Goods and services sold to ordinary people ranthen than businesses
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 limits in space or time
Finite
With an end or a limit
Private sector
Business organisations owned bu an individual or group of individuals
Public sector
business organisations owned by the central or local government
Stakeholder
An individual or group of individuals interested in the operation of a business
Entrepreneur
Person who takes risks and sets up a business, individual who organised the other factors of production and risks their own money in a business venture.
EBITDA
Earnings before interest, tax, depreciation and amortisation
Objectives
Goals or targets set by a business
Executives
Managers in an organisation who help make important decisions
Diversify
If a business, company or country diversifies, it increases the range of goods or services it 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 the shareholders in a company
Profit satisficing
Making enough profit to satisfy the needs of the business owner(s)
Automation
Using 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 fewer than 50 people
Revenue
Money from the sale of goods and services
Innovator
Someone who introduces changes and new ideas
Labour
People employed in a business/used in production
Unincorporated
Businesses where there is no legal difference between the business and the owner
Incorporated
Business that has separate legal identity from that of its owners
Sole trader/sole proprietor
Business owned by a single person
Unlimited liability
Owner of a business is personally liable
Partnership
Business owned by 2 and 20 people.
Deed of partnership
Binding legal documents that states the formal rights of partners
Limited partnership
Partnership where some partners contribute capital and enjoy a share of the profits but do not take part in the running of a business
Limited liability
The business owners/s are only liable for the original amount of money invested in the business
Audits
Official examinations of a company’s financial record to check that it is correct
Franchise
Structure in which a business allows another operator to trade under their name
Merchandise
Goods that ere sold
Social enterprise
Business that aims to improve human or environmental well being.
Cooperative
Company, factory or organization in which all the people there own an equal share of it.
Consumer cooperative
A cooperative owned by customers
Retail cooperative
Cooperative owned by retails members, who often work together to assert their purchasing power
Worker cooperative
Cooperative owned by its employees
Stock market
Market for shares in PLC
Prospectus
Document produced by a company that wants to go public to buy its shares
Regulatory control
Official power to control an activity and to make sure it is done in a satisfactory way
Flotation
Process of a company ‘going public’
Issue(shares)
Sale of new shares
Multinational company
Large business with significant production and service operations in at least 2 different countries
Charities
Organisation that give money, needs or help people who are poor, sick or in need.
Venture capitalists
Specialist investors who provide money for business purposes, often to new businesses
Limited companies
Business organisations that have a separate legal identity from that of their owners
Chairperson
Someone who is in charge of a meeting or directs the work of a committee or organisation
Certificate of incorporation
Document needed before a new company can start doing business
Public limited company
A company that offers its shares to the public while still limiting its liability.
Private limited company (LTD)
A company that does not publicly trade shares and is limited to a maximum of 50 shareholders
Natural monopoly
Market where it is more efficient to have just one organisation meeting total market demand.
Subsidise
Paying part of the costs
Privatisation
Transfer of public sector resources to the private sector
Productivity
Rate at which goods are produced and the amount produced, especially in relation to the work, time and money needed to produce them
Portfolio
Collection of business interest or products
Public corporations
Business organisations owned and controlled by the state/government
Infrastructure
Basic systems and structures that a a country or organisation needs in order to work properly
Scarce
Resources with limitited availability
