Nature Of Business - role of business Flashcards
business
the organised effort of individuals to produce and sell, for a profit, the products that satisfy individuals’ needs and wants
product
a good or service that can be bought or sold
goods
items that can be seen or touched
services
are things done for you by others
percentage of small-med businesses in Aus in all the industry
98%
production
when the business combines the resources to create products
profit
is what remains after all business expenses have been deducted from sales revenue
revenue
the money a business receives as payment for its product
operating expenses
are all the costs of running the business except the cost of goods solf
loss
when business expenses are greater than its sales revenue
employment
the state of having paid work
income
the money received by a person for providing his or her labour, or a business from a return on its investment
wage
money received by workers, usually on a weekly basis, for services they provide to an employer
salary
a fixed amount of money paid on a regular basis, usually fortnightly or monthly, to a permanent employee of a business
shareholders
people who are part owners of a company because they own a number of shares
dividend
part of a business’s profit that is divided among shareholders
entrepreneurship
the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit
risk
the possibility of a loss
choice
the act of selecting among alternatives
innovation
either creating a new product, service or process or significantly improving an existing one
wealth
measures the value of all the assets of worth owned by a person, community, company or country
wealth formula
determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts
quality of life
the overall wellbeing of an individual, and is a combination of both material and non-material benefits
research and development
a set of activities undertaken to improve existing products, create new products and improve production
