Unit 1 + 2 Flashcards
Primary Sector
Extracting or collecting raw materials from the ground e.g farming, fishing
Secondary Sector
Manufacturing raw materials e.g car manufacturers, food production
Tertiary Sector
Providing a service e.g healthcare, teacher
Entrepreneur and characteristics
Someone who is willing to set up their own business; hardworking, a risk-taker.
Sole trader
A self-employed person who owns their entire business, which is not legally separate from its owner.
Private Limited Company (Ltd)
A company that has limited liability and only has shareholders you want it to have.
Public Limited Company
A company whose shares are sold to the public on the stock market.
Stakeholders
Anyone that has an interest in a company e.g. students in a school
Internal expansion
When a business uses its own money to expand its business e.g. open more stores
Horizontal integration
Two businesses merging with the same supply chain
Conglomerate integration
Two different businesses merging.
Forward Vertical Integration
Merging with distributors
Backward vertical integration
Merging with supplier
Franchising
Buying rights under a name of a business
Globalization
The interconnected nature of the world
Exchange rates
One currency expressed as another
Internal risks
Risks that happen within a business e.g theft, employees going on strike
External risks
Risks that a business has no control over e.g. change in law, natural hazards
Economies of scale
When a businesses’ unit costs of production falls as its output rises and it expands
Dis-economies of scale
When the cost per unit increases as the business expands
