Unit 2 Flashcards
Objectives
Goals or targets set by a business
Executives
Managers in an organisation or company who help make important decisions
Diversify
If a business, company or country diversifies, it increases the range of goods or services it produces
Financial Return
Monetary return (in the form of money)
Profit Maximisation
Making as much profit as possible in a given time period
Shareholders
Owners of limited companies
Dividends
share of the profit paid to the shareholders in a company
Dividends
share of the profit paid to the shareholders in a company
Profit Satisficing
Making enough profit to satisfy the needs of the business owner(s)
SMART Objective
Specific Measurable Attainable Relevant Time-based (or) Specific Measurable Achievable Realistic Time Specific
Automation
Use of computers and machines instead of people to do a job
Economies of Scale
Financial advantages (falling average costs) 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 goods and services
