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Business Studies GCSE 2022-24 (Units 1-3) > Unit 1 Key Words > Flashcards

Unit 1 Key Words Flashcards

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1
Q

Business activity

A

The process of producing goods and services to satisfy consumer demand.

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2
Q

Need

A

A good or service which is essential to living.

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3
Q

Want

A

A good or service which people like, but isn’t essential for living.

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4
Q

Economic problem

A

Unlimited wants can’t be met because there are limited factors of production. This creates scarcity.

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5
Q

Factors of production

A

The resources needed to produce goods and services - land, labour, capital and enterprise.

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6
Q

Scarcity

A

There are not enough goods and services to meet the wants of the population.

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7
Q

Opportunity cost

A

The benefit that could have been gained from an alternative use of the same resource.

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8
Q

Specialisation

A

People and businesses concentrate on what they are best at.

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9
Q

Division of labour

A

Production is divided into separate tasks and each employee does just one of those tasks.

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10
Q

Consumer goods

A

Products which are sold to the final consumer. They can be seen and touched, for example computers and food.

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11
Q

Consumer services

A

Non-tangible products such as insurance services, transport.

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12
Q

Capital goods

A

Physical goods, such as machinery and delivery vehicles, used by other businesses to help produce other goods and services.

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13
Q

Primary sector

A

Firms whose business activity involves the extraction of natural resources.

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14
Q

Secondary sector

A

Firms that process and manufacture goods from natural resources.

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15
Q

Tertiary sector

A

Firms that supply a service to consumers and other businesses.

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16
Q

Quaternary sector

A

The quaternary sector consists of those industries providing information services.

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17
Q

Chain of production

A

The production and supply of goods to the final consumer involves activities from primary, secondary and tertiary sector businesses.

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18
Q

Mixed economy

A

An economy where the resources are owned and controlled by both the private and public sectors.

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19
Q

Private sector

A

The part of the economy that is owned and controlled by individuals and companies for profit.

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20
Q

Public sector

A

The part of the economy that is controlled by the state or government.

21
Q

Entrepreneur

A

An individual who has an idea for a new business and takes the financial risk of starting up and managing it.

22
Q

Business Plan

A

A detailed written document outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal.

23
Q

Revenue

A

The amount a business earns from the sale of its products.

24
Q

Business start-up

A

A newly formed business. They usually start small, but some might grow to become much bigger.

25
Q

Sole trader

A

A business that is owned and controlled by just one person who takes all of the risks and receives all of the profits.

26
Q

Start-up capital

A

The finance needed when first setting up a business.

27
Q

Partnership

A

A business formed by two or more people who will usually share responsibility for the day-to-day running of the business. Partners usually invest capital in the business and will share profits.

28
Q

Unincorporated business

A

A business that does not have legal identity separate from its owners. The owners have unlimited liability for business debts.

29
Q

Unlimited liability

A

If an unincorporated business fails, then the owners might have to use their personal wealth to finance any business debts.

30
Q

Shareholder

A

A person or organisation who owns shares in a limited company.

31
Q

Private limited company (Ltd)

A

Often a small to medium-sized company; owned by shareholders who have limited liability. The company can’t sell its shares to the general public.

32
Q

Public limited company (plc)

A

Often a large company; owned by shareholders who have limited liability. The company can sell its shares to the general public.

33
Q

Ordinary shareholders

A

The owners of a limited company.

34
Q

Limited liability

A

The shareholders in a limited liability company which fails only risk losing the amount they have invested in the company and not any of their personal wealth.

35
Q

Dividend

A

A payment, out of profits, to shareholders as a reward for their investment.

36
Q

Collateral

A

Non-current assets offered as security against borrowing.

37
Q

Franchise

A

A business system where entrepreneurs buy the right to use the name, logo and product of an existing business.

38
Q

Joint venture

A

Two or more businesses agree to work together on a project and set up a separate business for this purpose.

39
Q

Public corporation

A

A business organisation that is owned and controlled by the state.

40
Q

Objective

A

A statement of a specific target to be achieved. It should be SMART.

41
Q

Market share

A

The revenue of a business expressed as a percentage of total market revenue.

42
Q

Corporate social responsibility (CSR)

A

Businesses taking responsibility for the impact their activities might have on society and the environment.

43
Q

Pressure group

A

A group of like-minded people that puts pressure on businesses and government to change their policies to reach a predetermined objective.

44
Q

Social enterprise

A

A business with social objectives that reinvests most of its profits back into the business or into benefitting society at large.

45
Q

Stakeholder

A

An individual or group which has an interest in a business because they’re affected by its activities and decisions.

46
Q

Horizontal integration

A

Brings together two firms in the same industry who are also in the same sector of business activity.

47
Q

Forward vertical integration

A

Brings together two firms in the same industry but one is the customer of the other.

48
Q

Backward vertical integration

A

Brings together two firms in the same industry but one is the supplier of the other.

49
Q

Conglomerate integration

A

The bringing together of two businesses who are in completely different industries.

Business Studies GCSE 2022-24 (Units 1-3) (21 decks)

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