Section 1 – Business and the Environment in which it Operates... Flashcards
Business.
An organisation, which produces goods and services.
Consumer Goods.
Good and services sold to ordinary people (consumers) rather than businesses.
Entrepreneurs.
People who take risk and set up businesses.
Goods.
Physical products like a mobile phone, packet of crisps or pair of shoes.
Needs.
Basic requirements for human survival.
Private Sector.
Business organisations owned by individuals or groups of individuals.
Producer Goods.
Goods and services produced by one business for another.
Public Sector.
Business organisations owned by central or local government.
Scarce Resources.
The amount of resources available is limited.
Services.
Non-physical products like banking, car washing and waste disposal.
Stakeholders.
An individual or group with an interest in the operation of a business.
Wants.
Peoples’ desires for goods and services.
Mission Statement.
A brief summary of a firm’s aims and objectives.
Objectives.
The goals or targets set by a business.
Profit Maximisation.
Making as much profit as possible in a given period.
Deed of Partnership.
A binding legal document, which states the formal rights of partners.
Franchise.
Where a business (the franchisor) allows another operator (the franchisee) to trade under their name.
Incorporated Businesses.
Where the business has a separate legal identity from that of its owners.
Limited Liability.
Where a business owner is only liable for the original amount invested in the business.
Limited Liability Partnership.
A partnership where all partners has limited liability.
Limited Partnership.
A partnership where some partners contribute capital and enjoy a share of the profit but do not take part in the running of the business.
Partnership.
A business owned by between 2 and 20 people.
Sole Trader or Sole Proprietor.
A business owned by a single person.
Unincorporated Business.
Those businesses where there is no legal difference between the owner and the business.
Unlimited Liability.
Where the owner of a business is personally liable for all business debts.
Flotation.
The process of a company ‘going public’.
Joint Venture.
Where two or more companies share the cost, responsibility and profits from a business venture.
Limited Company.
A business organisation, which has a separate legal identity from that of its owners.
Stock Market.
A market for shares in PLCs.
Globalisation.
The growing integration of the World’s economies.
Multinational.
A large business with markets and production facilities in several different countries.
Repatriation (of Profit).
Where a multinational returns the profits from an overseas venture to the country where it is based.
Capital-Intensive Production.
Production methods that make more use of machinery relative to labour.
Division of Labour.
Specialisation in specific tasks or skills by an individual.
Entrepreneur.
An individual who organises the other factors of production and risks their own money in a business venture.
Factors of Production.
The resources used to produce goods and services. They include land, labour, capital and enterprise.
Fixed Capital.
The stock of ‘man-made’ resources such as machines and tools used to help make goods and services.
Labour.
The people used in production.
Labour-Intensive Production.
Production methods that make more use of labour relative to machinery.
Production.
The transformation of resources into goods and services.
Specialisation.
In business, the production of a limited range of goods.
De-Industrialisation.
The decline of manufacturing.
Primary Industry.
Production involving the extraction of raw materials from the earth.
Secondary Industry.
Production involving the conversion of raw materials into finished and semi-finished goods.
Tertiary Industry.
The production of services in the economy.
Assisted Areas.
Areas that are designated by the UK or EU as having economic problems and are eligible for support in a variety of forms.
Brownfield Site.
Areas of land, which were once used for urban development.
Greenfield Areas.
Areas of land, usually on the outskirts of towns and cities, where businesses develop for the first time.
Regional Policy.
Measures used by the government to attract businesses to ‘depressed’ areas.
Economic Growth.
An increase in income, output and expenditure over a period of time.
Fiscal Policy.
Using changes in taxation and government expenditure to manage the economy.
Inflation.
A rise in the general price level.
Interest.
The price of borrowed money.
Monetary Policy.
Using changes in interest rates and the money supply to manage the economy.
Monopoly.
Where one business dominates the whole market.
Unemployment.
When people are out of work & cannot find a job.
Anti-Competitive Practices or Restrictive Trade Practices.
An attempt by firms to prevent or restrict competition.
Barriers to Entry.
Obstacles that make it difficult for new firms to enter a market.
Balance of Trade or Visible
Balance.
The difference between visible exports and visible imports.
Devaluation.
The depreciation or fall in the value of a currency.
Exchange Rate.
The price of one currency in terms of another.
The price of one currency in terms of another.
Goods and services sold overseas.
Free Trade.
Trade between nations that is completely without government restrictions.
Imports.
Goods and services bought from overseas.
Invisible Trade.
Trade in services.
Protectionism.
An approach used by a government to protect domestic producers.
Quota.
A physical limit on the quantity of imports allowed into a country.
Subsidy.
Financial support given to a domestic producer to help compete with overseas firms.
Tariff.
A tax on imports to make them more expensive.
Trade Barriers.
Measures designed to restrict trade.
Business Ethics.
Ideas in business, about what is morally right or wrong.
Pressure Groups.
Groups of people without political power who seek to influence decision makers in politics, society and businesses.
Sustainable Development.
The idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations.
Social Audit.
The collection of information and reporting on the impact that a business has on society and the environment.
