The Role of Business Flashcards
Chapter 1 Module 1
Business
The organised effort of individuals to produce and sell, for a profit, the products that satisfy individuals’ needs and wants
Choice
The act of selecting among alternatives
Dividend
A distribution of a company’s profits (either yearly or half-yearly) to shareholders that is calculated as many cents per share.
Entrepreneur
Someone who starts, operates and assumes the risk of a business venture in the hope of making a profit.
Entrepreneurship
The ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.
Finished Product
One that is ready for customers to buy and use.
Goods
Items that can be seen or touched.
Income
Money received by a person for providing his or her labour, or a business from a return on its investments.
Innovation
Either creating a new product, service or process, or significantly improving an existing one.
Operating Expenses
All the costs of running the business except the cost of goods sold.
Product
A good or service that can be bought or sold.
Production
Refers to those activities undertaken by the business that combine the resources to create products that satisfy customers’ needs and wants.
Profit
What remains after all business expenses have been deducted from sales revenue.
Quality of Life
Refers to the overall wellbeing of an individual, and is a combination of both material and non-material benefits.
Research and Development (R&D)
A set of activities undertaken to improve existing products, create new products and improve production.
Revenue
The money a business receives as payment for its products.
Risk
Refers to the possibility of loss.
Salary
A fixed regular payment, usually paid on a fortnightly or monthly basis but often expressed as an annual sum, made to a permanent employee of a business.
Services
Things done for you by others.
Shareholders
People who are part owners of a company because they own a number of shares.
Wage
Money received by workers, usually on an hourly or daily basis, for services they provide to an employer.
