Theme 2 - Growing the business 2.1 Flashcards
Research and development
Research into a new product or processes and developing the ideas that are generated from research.
Innovation
The act of creating new products or processes.
E-commerce
Using the internet to carry out business transactions
Merger
When two or more businesses join together to operate as on business
Takeover
When one business buys another business and incorporates it into their own business
Public limited company (PLC)
An incorporated business that can sell shares to the public
Multinational Corporation (MNC)
A business with operations in more than one country
Interest
The cost of borrowing, or percentage of the amount of money borrowed that must be repaid in addition to the original amount borrowed
Secured
Guaranteed, because if the business fails to pay back the money the bank can take the asset and sell it
Dividends
A percentage of a business’s profit that is paid to shareholders as a reward for their investment in the business
Stock market flotation
The process of changing a business to a public limited company (plc) by issuing shares for a sale on a stock exchange
Stock exchange
A place where shares in PLCs can be bought and sold
Degree of competition
The number and size of businesses competing in a particular market
Market share
The proportion of sales in a market that are taken by one business
