1 business activity and influences on business Flashcards Preview

Business > 1 business activity and influences on business > Flashcards

Flashcards in 1 business activity and influences on business Deck (150)
Loading flashcards...
1

Ch1.p4.Premises

Buildings and land used by a shop or business
• e.g. factory and shops

2

5. Business

Organisation that produces goods and services

3

5. Organisation

Group, such as a club or business, that has formed for a particular purpose

4

5. Goods

Physical products, such as mobile phone, a packet of crisps or a pair of shoes

5

5. Services

Non-physical products such as banking, car washing and waste disposal

6

5. Output

Amount of goods or work produced by a person, machine or factory

7

5. Human Resources

In some businesses, the department that deals with employment, training and helping people

8

5. Consumer goods

Goods and services sold to ordinary people (consumers) rather than businesses

9

5. Producer goods

Goods and services produced by one business for another

10

5. Needs

Basic requirements for human survival

11

5. Wants

People’s desires for goods and services

12

6. Infinite

Without limits in space or time

13

6. Finite

Having an end or a limit

14

6. Scarce

Resources with limited availability

15

6. Private sector

Business organisations owned by individuals or groups of individuals
• e.g. apple or porche

16

6. Public sector

Business organisations owned and controlled by central or local government
•e.g. public schools or health

17

7. Stakeholder

An individual or group with an interest in the operation of a business

18

7. Entrepreneur

Person who takes risks and sets up new businesses; individual who organizes the other factors of production and risks their own money in a business venture

19

10. EBITDA

Earnings before interest, tax depreciation and amortisation

20

Ch2. 11. Objectives

Goals or targets set by a business

21

11. Executives

Managers in an organisation or company who help make important decisions

22

11. Diversify

If a business, company or country diversifies, it increases the range of goods or services it produces

23

13. Financial return

Monetary return

24

13. Profit maximisation

Making as much profit as possible in a given time period

25

13. Shareholders

Owners of limited companies

26

13. Dividends

Share of the profit paid to shareholders in a company

27

13. Profit satisficing

Making enough profit to satisfy the needs of the business owner(s)

28

16. Automation

Use of computers and machines instead of people to do a job

29

16. Economies of scale

Financial advantages (failing average costs) of producing something in very large quantities

30

17. Large business

A business that employs more than 250 people

31

17. Small business

A business that employs fewer than 50 people

32

17. Revenue

Money from the sale of goods and services

33

Ch3. 20. Innovator

Someone who introduces changes and new ideas

34

20. Labour

People employed in a business/ used in production

35

20. Unincorporated

Business where there is no legal difference between the owner and the business

36

20. Incorporated

Business that has a separate legal identity from that of its owners

37

21. Sole trader or sole proprietor

Business owned by a single person

38

21. Unlimited liability

Owner of a business is personally liable for all business debts

39

21. Partnership

Business owned by between 2 and 20 people

40

21. Deed of partnership

Binding legal document that states the formal rights of partners

41

22. Limited partnership

Partnership where some partners contribute capital and enjoy a share of the profit but do not take part in the running of the business

42

22. Limited liability

Business owner is only liable for the original amount of money invested in the business

43

22. Audits

Official examination of a company’s financial records in order to check that they are correct

44

23. Franchise

Structure in which a business (the franchisor) allows another operator (the franchisee) to trade under their name

45

23. Merchandise

Goods that are being sold

46

24. Social enterprise

Business that aims to improve human or environmental wel-being, e.g. charities

47

24. Cooperative

Company, factory or organisation in which all the people working there own an equal share of it

48

24. Consumer cooperative

Cooperative that is owned by its customers

49

24. Retail cooperative

Cooperative of retail members, who often work together to assert their purchasing power

50

24. Worker cooperative

Cooperative that is owned by its customers

51

24. Charities

organisations that give money, goods or help to people who are poor, sick or in need

52

Ch4.p27. Venture capitalists

• specialists investors (individuals or companies) who provide money for businesses purposes, often to new businesses
• google inc or banks

53

28. Limited companies

Business organisations that have a separate legal identity from that of their owners

54

28. Limited liability (limited companies)

Shareholders are legally responsible for the debts of a company according to how many shares they own
• if a business goes bankrupt and a shareholder owns 50% of the business, and the business owes 3000 euros, the shareholder would owe 1500 euros

55

28. Chairperson

Someone who is in charge of a meeting or directs the work of a committee or organisation

56

28. Certificate of incorporation

Document needed before a new company can start doing business

57

29. Private limited company

In the UK, a private company limited by shares, which means that liability of the shareholders to creditors of the company is limited to the capital originally invested, a shareholder’s personal assets are protected, and with Ltd or Limited after its name

58

31. Public limited company

In the uk, a limited company whose shares are freely sold and traded, with a minimum share capital of 50000, and the letters Plc after its name

59

Prospectus

Document produced by a company that wants the public to buy its shares

60

31. Regulatory control

Official power to control an activity and to make sure that it is done in a satisfactory way

61

31. Flotation

Process of a company ‘going public’

62

31. Multinational company

Large business with significant production or service operations in at least two different countries.

63

33. Issue (shares)

Sale of new shares

64

Ch5. 35. Productivity

Rate at which goods are produced, and the amount produced, especially in relation to the work, time and money needed to produce them.

65

29. Stock market

Market for shares of PLC’s

66

36. Public corporations

Business organisations owned and controlled by the state/government

67

37. Portfolio

Collection (of business interests or products)

68

37. Infrastructure

Basic systems and structures that a country or organisation needs in order to work properly

69

38. Natural monopoly

Market where it is more efficient to have just one organisation meeting total market demand

70

38. Subsidie

Paying part of the costs (often by the government in business)

71

39. Privatisation

Transfer of public sector resources to the private sector (business)

72

Ch7. 50. Primary sector (industry)

Production involving the extraction of raw materials from the earth.

73

50. Secondary sector (industry)

Production involving the conversion of raw materials into finished and semi-finished goods

74

50. Assembly plant

Factory where parts are put together to make a finished product

75

50. Tertiary sector (industry)

Protection of services in the economy

76

52. De-industrialisation

Decline in manufacturing

77

Ch8. 57. Brownfield sites

Areas of land that were one used for urban development

78

57. Greenfield sites

Previously undeveloped areas of land, usually on the outskirts of towns and cities

79

61. Assisted areas

Areas that are designed by a government as having economic problems and are targeted to receive support in a variety of forms

80

61. Viability studies

Careful study of how a planned activity will work, how much it ill cost, and what income it is likely to produce

81

62. Trade bloc

Group of countries situated in the same region that join together and enjoy trade free of barriers

82

9. 64. Emerging economies

Rapidly growing economies (for example, Brazil) - emerging economies have huge growth potential it also pose significant risks

83

65. Globalisation

Growing integration of the world’s economies

84

66. Intellecual property

People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright

85

66. Monetary system

System of money in a particular country or the world as a whole, and the way that it is controlled by governments and central banks

86

66. Saturate (market)

To offer so much of a product for sale that is more than people want to buy

87

70. Predator

Business that tries to use another’s weakness to get advantages

88

70.hostile takeover

Takeover that the company being taken over does not want or agree to

89

70. Bid

Offer to pay a particular price for something (for example, a business)

90

10. 74. Commodities

Products that are bought an sold (in business often refers to things like oil, gold, iron, ore, rice, wheat and meat)

91

74. Patents

Legal document giving a person or company the right to make or sell a new invention, product, or method of doing something and stating that no other person or company is allowed to do this

92

74. ventures

New business activity that involves taking risks

93

Ch8. 57. Brownfield sites

Areas of land that were one used for urban development

94

57. Greenfield sites

Previously undeveloped areas of land, usually on the outskirts of towns and cities

95

61. Assisted areas

Areas that are designed by a government as having economic problems and are targeted to receive support in a variety of forms

96

61. Viability studies

Careful study of how a planned activity will work, how much it will cost, and what income it is likely to produce

97

62. Trade bloc

Group of countries situated in the same region that join together and enjoy trade free of barriers

98

Ch9. 64. Emerging economies

Rapidly growing economies (for example, Brazil) - emerging economies have huge growth potential but also pose significant risks

99

65. Globalisation

Growing integration of the world’s economies

100

66. Intellectual property

People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright

101

66. Monetary system

System of money in a particular country or the world as a whole, and the way that it is controlled by governments and central banks

102

66. Saturate (market)

To offer so much of a product for sale that there is more than people want to buy

103

70. Predator

Business that tries to use another’s weakness to get advantages

104

70. Hostile takeover

Takeover that the company being taken over does not want or agree to

105

70. Bid

Offer to pay a particular price for something (for example, a business)

106

Ch10. 74. Commodities

Products that are bought and sold (in businesses often refers to things like oil, gold, iron ore, rice, wheat and meat)

107

74. Patents

Legal documents giving a person or company the right to make or sell a new invention, product, or method of doing something and stating that no other person or company is allowed to do this

108

74. Ventures

New business activity that involves taking risks

109

76. Currency reserves

Money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts

110

76. Human capital

People and their skills

111

76. Enterprise

The activity of starting and running businesses

112

77. Exploitation

Situation in which you treat someone unfairly by asking them to do things for you, but give them very little in return

113

78. Repatriation (of profit)

Where a multinational returns the profits from an overseas venture to the country where it is based, typically from a developing country to a developed country (not often the other way around)

114

78. Livelihood

Way you earn money in order to live

115

Ch11. 82. Surplus

Amount of something that is more than what is needed or used

116

82. Exports

Goods and services sold overseas

117

82. Imports

Goods and services bought from overseas

118

82. Visible trade

Trade in physical goods

119

82. Invisible trade

Trade in services

120

82. Balance of trade (or visible balance)

Difference between visible exports and visible imports

121

84. Transactions

Business deals or actions, such as buying or selling something

122

84. Exchange rate

Value of one currency in terms of another

123

86. Commission

Extra amount of money that is paid to a person or organisation according to the value of the goods they have sold or the services they have provided

124

Ch12. 90. Fiscal policy

Using changes in taxation and government expenditure to manage the economy

125

90. Lay off (staff)

Make employees redundant

126

90. Social security payments

Money taken by the British government from people’s wages to pay for the system of payments to people who are unemployed or ill

127

92. Anti-competitive practices

(Restrictive trade practices) attempts by firms to prevent or restrict competition

128

92. Barriers to entry

Restrictions that mean it is difficult for new firms to enter a market

129

93. Merger

Two or more businesses joining together to form one new firm

130

94. Protectionism

Use of trade barriers to protect domestic producers

131

94. Infant industries

New industries that are yet to be established

132

94. Dumping

Where a business sells goods in another country often below costs

133

94. Trade barriers

Measures designed to restrict trade

134

94. Quota

Physical limit on the quantity of imports allowed into a country

135

94. Subsidy

Financial support given to a domestic producer to help compete with overseas firms

136

94. Interest

Price of borrowed money (and the reward to savers)

137

94. Monetary policy

Using changes in interest rates and the money supply to manage the economy

138

97. Budget

An official statement that a government about how much it intends to spend and what the rates of taxes will be for the next year or six months

139

97. Tax allowances

Part of income that is not taxed

140

98. Budgetary measures

Actions taken by the government to influence business and the economy

141

Ch13. 101. Urbanisation

Process of constructing more and more buildings on rural land

143

104. Sustainable development

Idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations

144

Ch14. Capital employed

Amount of money invested in a business

145

112. Overtrading

Taking on more work than a business can afford to fund effectively

146

Ch15. 117. Inventory

Stocks of goods

147

118. Fixed assets

Resources that are used repeatedly for a period of time by a business such as property, tools, vehicles and machinery

148

119. Downturn

Period or process in which business activity, production, etc. is reduced and conditions become worse

149

120. Undercapitalised

Starting a business with insufficient capital

150

120. Outcompeted

Perform more effectively in a particular field

151

101. Capital-intensive

Use of relatively more machinery than labour in production