Unit 1 Flashcards
Business:
Organisation that produces G&S
Organisation:
Group that’s formed for a particular purpose
Goods:
Physical products, e.g. phone, shoes
Services:
Non-physical products, e.g. car washing, banking
Output:
Amount of goods/work produced
Producer goods:
G&S produced by one business for another
Consumer goods:
Consumer goods:
G&S sold to ordinary people (consumers) rather than businesses
Needs:
Basic requirements for human survival
Wants:
People’s desires for G&S
Premises:
Buildings and land used by a shop or business
Infinite:
Without limits
Finite:
Having and end or limit
Scarce:
Resources with limited availability
Private sector:
Business owned by individuals or group of individuals
Public sector:
Business owned by government
Stakeholder:
Individual or group with interest in the operation of the business
Entrepreneur:
A person who takes the financial risk of setting up a business
EBITDA:
Earnings before interest, tax, depreciation & amortisation
Objectives:
Goals/ targets set by a business
Executives:
Managers in a company who help make important decisions
Diversify:
Increasing the range of G&S produced
Profit maximisation:
Making as much profit as possible in given time period
Financial return:
Monetary return
Shareholders:
Owners of limited companies
Dividends:
Share of the profit paid to shareholders in a company
Profit satisficing:
Making enough profit to satisfy the needs of the business owners
Automation:
Use of computers & machines instead of people to do a job
Economies of scale:
Financial advantages of producing something in very large quantities
Large business:
A business that employs more than 250 people
Small business:
A business that employs fewer than 50 people
Revenue:
Money from the sale of G&S
Innovater:
Someone who intorduces changes & new ideas
Labour:
People employed in a business/ use in production
Unincorporated:
In business - no legal difference between owner & business
Incorporated:
Business that has separates legal identitiy from that of its owners
Sole trader:
Business owned by a single person
Unlimited liability:
Owner is personally liable for business debts - must pay with personal assets
Partnership:
Business owned by between 2 - 20 people
Deed of partnership:
Binding legal document that states the formal rights of partners
Limited partnership:
Where some partners contrii=bute capital + enjoy profit.. Don’t take part in the running of the business
Audits:
Official examination of a comapny’s financial records - checking if they are correct
Limited liability:
Owner only liable for original amount of money put in the business
Franchise:
Structure in which business allows another operator to trade under their name
Merchandise:
Goods that are being sold
Social enterprise:
Business aiming to improve human or environmental well-being. e.g. Charities
Cooperative:
Company in which all the people working there own an equal share of it
Consumer cooperative:
Cooperative owned by its customers
Retail cooperative:
Cooperative of retail members
Charities:
Organisations that give money, goods or help to people who are poor, sick, or in need
Venture capitalists:
Specialist investors who provide moneyfor business purpose, often to new businesses
Limited companies:
Business’s that have a separate legal identity from that of their owners
Chairperson:
Someone who’s in charge of a meeting or directs the work of an organisation
Stock market:
Market for shares in PLC’s
PLC:
A public limited company is a business that is managed by directors and owned by shareholders
LTD:
Private limited company
Prospectus:
Document produced by a company that wants the public to buy its shares
Regulatory control:
official power to control an activity and to make sure that it is done in a satisfactory way
Flotation:
Process of a company ‘going public’
Multinational company:
Large business with significant production or service operations in at least two different countries
Productivity:
Rate at which goods are produced, & the amount produced. In relation to the work, time and money needed to produce them
Public corporations:
Business’s owned & controlled by the governnment
Portfolio:
Collection of business interests or products
Infrastructure:
Basic systems/structures a company/organisation needs in order to work properly
Natural monopoly:
Market where it’s more efficient to have just one organisation meeting total market demand
Privatisation:
Transfer of public sector resources to the private sector
Primary sector:
Production involving extraction of raw materials
Secondary sector:
Production invloving conversion of raw materials to finished goods
Assembly plant:
Factory where parts are put together to make a finished product
Tertiary sector:
Production of services in the economy
De-industrialisation:
Decline in manufacturing
Trade bloc:
Group of countries situated in the same region that join together & enjoy trade free of barriers
Emerging economies:
Rapidly growing economies
Globalisation:
Growing integration of the world’s economies
Monetary system:
System of money controlled by governments & central banks
Saturate:
To offer so much of a product that there’s more than people want to buy
Predator:
Business that tries to use another’s weakness to get advantages
Hostile takeover:
Takeover that the company being taken over doesn’t want to agree to
Bid:
Offer to pay a particular price for something
Commodities:
Products that are bought and sold
Ventures:
New business activity that involves taking risks
Human capital:
People & their skills
Enterprise:
The activity of starting & running a business
Exploitation
Situation in which you constantly ask for something but give very little in return
Livelihood:
Way you earn money in order to live
Exports:
Goods & services sold overseas
Imports:
Goods & services bought from overseas
Visible trade:
Trade in physical goods
Invisible trade:
Trade in services
Balance of trade:
Difference between visible exports & visible imports
Transactions:
Business deals/actions, such as buyig or selling something
Exchange rate:
Value of one currency in terms of another
Merger:
Two or more business joing togetehr to form one new firm
Protectionism:
Use of trade barriers to protect domestic producers
Trade barriers:
Measures designed to restrict trade
Infant industries:
New industries that are yet to be established
Dumping:
When a business sells goods in another country, often below cost
Quota:
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
Interest:
Price of borrowed money
Monetary policy:
Using changes in interest rates & the money supply to manage the economy
Tax allowences:
Part of income that isn’t taxed
Budgetry measures:
Actions taken by the government to influence business & the economy
Urbanisation:
process of constructing more & more buildins on rural land
Capital-intensive:
Use of relatively more machinery than labour in production
Sustainable development:
Idea that people should satisfy their basic needs & enjoy improved living standards without compromising the quality of life of future generations
Capital-employed:
Amount of money invested in a business
Overtrading:
Taking on more work than a business can afford o fund effectively
Inventory:
Stocks of goods
