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Business studies Key terms > Topic 1 - Business activity > Flashcards

Topic 1 - Business activity Flashcards

1
Q

What does it mean by Factors of production

A

Factors of production are the resources that businesses use to provide their goods or services

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2
Q

What does it mean by Land

A

Physical land and natural resources a business may use

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3
Q

What does it mean by Labour

A

The employees: the number of employees and their skills

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4
Q

What does it mean by Capital

A

Equipment used to provide the goods and services e.g. technology or machinery.
We call this capital because capital (money) is spent on investing in these resources.

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5
Q

What does it mean by Enterprise

A

The ideas and skills of those involved in identifying business opportunities.
Entrepreneurs take risks to identify business opportunities.

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6
Q

What does it mean by Primary sector

A

First stage of production. Collection of raw materials e.g. fishing, farming, oil extraction

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7
Q

What does it mean by Secondary Sector

A

Second stage of production. They convert primary resources into finished goods e.g. manufacturers

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8
Q

What does it mean by Tertiary sector

A

Third stages of production. They provide services

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9
Q

What does it mean by Local business environment

A

The local population

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10
Q

What does it mean by National business environment

A

The UK as a whole

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11
Q

What does it mean by Global business environment

A

The world as a whole

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12
Q

What does it mean by Market

A

A place where buyers and sellers meet

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13
Q

What does it mean by Goods

A

Goods are tangible things that are produced e.g. TV

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14
Q

What does it mean by Services

A

Services are activities that other people or businesses do for you e.g. a holiday

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15
Q

What does it mean by Competitiveness

A

Different markets will have different levels of competitiveness. The more sellers in the market the more competitive it is likely to be.

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16
Q

What does it mean by Dynamic business environment

A

Is always changing e.g. with changes to technology and the economy.

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17
Q

What does it mean by Interdependent nature of business

A

How the functions of a business are linked and how they affect each other.

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18
Q

What does it mean by Entrepreneur

A

An entrepreneur is someone who; uses their initiative to identify a business opportunity, innovates to create a new business providing goods and services to customers and organises resources to create something customers value and are willing to pay for.

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19
Q

What does it mean by Social Enterprise

A

A social enterprise is a business that helps a particular cause.

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20
Q

What does it mean by Business Plan

A

A business plan sets out what a business does, and what it would likely to achieve in the future. It will include human resources, finances and marketing.

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21
Q

What does it mean by Sales Revenue

A

All the money made from sales

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22
Q

What does it mean by Profit

A

The amount by which a business’s revenue from all its sales exceeds its costs

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23
Q

What does it mean by Public sector

A

Businesses that are owned by the Government e.g. NHS, state schools. Their aims are usually socially driven – to help society.

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24
Q

What does it mean by Private sector

A

Businesses that are owned by a private individual. Their aim is usually to make a profit.

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25
What does it mean by Consumer goods
Products bought to be used and consumed, such as drinks and clothes.
26
What does it mean by Producer goods
Bought to be used in the production process to make something else e.g. ingredients.
27
What does it mean by Durable goods
Goods that last for a period of time e.g. washing machine
28
What does it mean by Non-durable goods
Goods that are used up e.g. you eat an ice cream
29
What does it mean by Personal services
Provided for the general public e.g. window cleaning
30
What does it mean by Commercial services
Services provided for a business e.g. cleaning, catering for a canteen
31
What does it mean by Sole traders
A sole trader describes any business that is owned and controlled by one person, although they may employ workers.
32
What does it mean by Partnerships
Partnerships are businesses owned by two or more people.
33
What does it mean by Deed of partnership
An agreement between partners that sets out the partnership such as how profits will be shared.
34
What does it mean by Unlimited liability
This occurs when the personal possessions of the owners of the business are at risk if there are any problems. There is no limit to the amount of money the owners may have to pay out.
35
What does it mean by Private limited companies (LTD)
An LTD cannot publicly advertise its shares for sale and is owned by family members and friends.
36
What does it mean by Public limited companies (PLC)
A PLC can advertise its shares and its shares can be sold to anyone on the stock exchange.
37
What does it mean by Stock exchange
A market for shares of PLC’s. Large numbers of shares are being bought and sold all the time.
38
What does it mean by Flotation
When a LTD becomes a PLC and has all its shares listed on the stock exchange.
39
What does it mean by Limited liability
Companies have limited liability. This occurs when there is a limit to the amount of money investors can lose; they can only lose the funds invested and not their personal possessions.
40
What does it mean by Co-operative
This type of business exists when a business is owned and run by their members
41
What does it mean by Charity
Is a non-profit making organisation that is set up for charitable purposes
42
What does it mean by Shareholder
The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of these is called a shareholder
43
What does it mean by Aim
A business aim is a general goal for a business
44
What does it mean by Objective
A business objective is a specific target that is set for a business to achieve
45
What does it mean by Stakeholders
Individuals and organisations that are affected by the activities of a business
46
What does it mean by Footfall
How many people walk past the location
47
What does it mean by Infrastructure
This refers to the transport, communication and support services that are available. It would include things such as road, public transport, airports
48
What does it mean by Raw materials
Materials to be used in the production of a good e.g. wood, oil.
49
What does it mean by Proximity to customers/suppliers
Closeness to customers / suppliers
50
What does it mean by Market share
The proportion of a businesses sakes within its market
51
What does it mean by Market capitalisation
A measure of a business by the value of its shares, this can give a business an indication of the size of the business.
52
What does it mean by Turnover
Another way to measure the size of a business. Turnover is the total value of all the sales a business has made in a given time frame.
53
What does it mean by Diversification
When a business sells new products in a new market
54
What does it mean by Economies of scale
Occur when the cost per unit falls as a business expands
55
What does it mean by Cost per unit
The cost of one product
56
What does it mean by Internal growth
Where a business grows by selling more of its own products
57
What does it mean by External growth
Where a business grows by joining with another business
58
What does it mean by Franchising
Paying a franchise owner to open an established business
59
What does it mean by Franchisor
Sells the franchise to the franchisee
60
What does it mean by Franchisee
Buys the franchise from the franchisor
61
What does it mean by e-commerce
Online trading
62
What does it mean by Outsourcing
When a business uses another business to produce for
63
What does it mean by Merger
Two or more businesses join together to form a new business
64
What does it mean by Takeover / acquisition
When one business gains control of another
65
What does it mean by Horizontal integration
Where a business joins with another at a different stage of the same stage of production
66
What does it mean by Vertical integration
Where a business joins with another at a different stage of the same production process
67
What does it mean by Backward vertical integration
Where a business joins with its suppliers
68
What does it mean by Forward vertical integration
Where a business joins with its distributors
69
What does it mean by Conglomerate integration
Where a business joins with another in a different type of production process

Business studies Key terms (6 decks)

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