unit 1 key terms Flashcards
Business Objectives
The goals or targets that a business aims to achieve, such as profit maximization, growth, or survival.
Profit
Total revenue minus total costs.
Mission Statement
A qualitative statement of an organization’s aims that guides its actions and decisions.
Vision Statement
A future-oriented declaration of a company’s purpose and aspirations.
Revenue (Turnover)
The total income a business earns from its sales before any costs are deducted (Revenue = Price × Quantity).
Costs
Expenditures incurred in the production of goods or services. Includes fixed costs and variable costs.
Fixed Costs
Costs that do not change with output (e.g., rent, salaries).
Variable Costs
Costs that vary with output (e.g., raw materials).
Goods and Services
Tangible products (goods) and intangible offerings (services) provided by businesses.
Entrepreneurship
The process of identifying business opportunities and taking risks to exploit them.
Stakeholders
Individuals or groups affected by a business’s operations, such as employees, customers, suppliers, and shareholders.
Sole Trader
A business owned and operated by one person.
Partnership
A business owned by two or more people who share profits and responsibilities.
Private Limited Company (Ltd)
A company owned by private shareholders with limited liability.
Public Limited Company (PLC)
A company that sells shares to the public on the stock exchange.
