What is business management(Definitions) Flashcards

To prepare for IB Business Management Exams

1
Q

Input

A

a human, physical or financial resource needed to create a product

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2
Q

Output

A

a product created using inputs that satisfy consumer’s needs

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3
Q

Entrepreneur

A

a person who starts a business

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4
Q

Physical resources

A

the raw materials, semi-finished products(e.g. steel), and capital goods that a business needs to start producing its product

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5
Q

Capital goods

A

goods that are used to make consumer products

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6
Q

Financial resources

A

the funds needed to set up a business

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7
Q

Short-term financing

A

the financial solutions that a business uses to cover their immediate needs(e.g. inputs, salaries, etc.)

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8
Q

Long-term financing

A

the financial solutions that a business seeks to use for extended periods of time and is typically reserved for major investments or projects

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9
Q

Stock

A

the inventory held by a business to sell to customers(finished products)

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10
Q

Inventory

A

a term used to refer to both the raw materials used in production and the finished goods which are ready for sale

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11
Q

Human resources

A

the people needed to run a business

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12
Q

Enterprise

A

a business venture(new business/business activity that involves the potential for both risk and return

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13
Q

Goods

A

tangible outputs which satisfy consumer needs(e.g. furniture, stationer, etc.)

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14
Q

Services

A

intangible outputs which satisfy consumer needs(e.g. healthcare, education, etc.)

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15
Q

Feedback

A

the process by which the output of a system becomes an input to the same system

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16
Q

Sustainability

A

meeting the needs of the present without compromising the ability of future generations to meet their own needs

17
Q

Economy

A

a system for producing and provisioning goods and services among a group of people

18
Q

Primary sector

A

the extraction or production of raw materials from the Earth

19
Q

Secondary sector

A

the processing of raw materials into finished goods

20
Q

Tertiary sector

A

the provision of services for consumers or other businesses

21
Q

Quartenary sector

A

the provision of knowledge-based services(e.g. IT, consultancy, research, etc.)

22
Q

Supply chain

A

the steps involved in creating products

23
Q

Intergrated business

A

a business where activities span one or more sectors

24
Q

Outsourcing

A

the process of having one or more internal functions of a business performed externally by another person or business

25
Opportunity(SWOT)
a favourable external condition or trend that is beneficial to the business
26
Threat(SWOT)
an unfavourable condition or threat which harms the business
27
Business plan
a written document that describes a business, its objectives and its strategies, the market that it is in and its financial forecasts
28
Expansion
when the total value of all goods and services in a country(GDP) increases
29
Recession
when the total value of all goods and services in a country(GDP) decreases(usually for 6 or more months)
30
Inflation
an increase in the general price level(usually expressed as a percentage change)
31
Deflation
a decrease in the general price level(usually expressed as a percentage change)
32
Interest rate
the cost of borrowing money(as a percentage of the principal amount)
33
Exchange rate
the price of one country's currency in terms of another country's currency
34
Subsidy
government payment to businesses
35
Tax
payment from individuals and businesses to the government
36
Total revenue
all the income received by the business in a specified period of time
37
Total costs
all the capital spent on a business in a specified period of time