Paper 1 key terms Flashcards
Minor
Public Limited Company
A public limited company is a limited liability company where shares can be bought and sold by the general public via a stock exchange. All financial information is open to the public for inspection.
Corporate Social Responsibility
The conscientious consideration of ethical and environmental practice related to business activity. A business that adopts a CSR acts morally towards all of its various stakeholder groups and the well-being of society as a whole.
Internal Growth
When a business grows using its own capabilities and resources to increase the scale of its operations and sales revenue.
External Growth
When a business grows and evolves by collaborating with, buying up or merging with other organisations.
Multinational company
Is an organisation that operates in two or more countries, with its head offices or HQ usually based in the home country
Product Portfolio
The collection of products owned by an organisation at any one point in time
Manufacturer
An organisation that transforms raw materials into finished goods which are sold to other organisations to produce more complex goods.
Promotional Strategies
Techniques that encourage the purchase of a good or service by offering temporary incentives or discounts
Board of Directors
The governing body of an organisation elected by the shareholders to run the company on their behalf
Takeover
Occurs when a company buys a controlling share in another firm without the prior agreement or approval or the target company’s Board of Directors
Branding
The practice of using an exclusive name, symbol or design to identify an organisation or product
Advertising
Is a method of informative or persuasive promotion that is usually paid for. It’s purpose is to raise the level of demand for a firm’s products
Sustainability
A company’s strategy and actions to minimise adverse environmental and social impacts related to a firm’s operations
