1.1 The Purpose And Nature Of Business Flashcards
(44 cards)
Definition of business
A business is an organisation designed to supply a product of service
Definition of product
A product is anything that is capable of satifying customer needs and it it tangiable
Definition of service
A service is an act that a business person carries out for you in exchange for money, for example:
- dental treatment
-accountancy - travel agents
Definition of land
Land is somewhere to produce the goods e.g. a farm
Definition of labour
People to work in the business e.g. farm worker
Defintion of capital
Money to get the business started
Definition of enterprise
This is the drive or motivation from the owners to start a business
Definition of primary sector
Extract raw materials from the earth by digging it up
Definition of secondary sector
Manufacturings like bottles and cars
Definition of tertiary sector
When products are sold
What is a sole trader?
A sole trader is a self-employed person who owns and runs their own business as an individual.
What is a partnership?
A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.
What is a LTD?
A LTD is a limited liability company that is public.
What is a PLC?
A PLC is a business that is managed by directors and owned by shareholders.
What is a Not-ForProfit organisation?
A Not-For-Profit organisation is a business that aims to do something other than to make profit for the owners, such as providing a public service or helping people.
What is a Companies House?
A Companies House ia any limited company or partnership business has to register with Companies House. These records are public and there is usually a fee to register.
What is a Deed of Partnership?
A Deed of Partnership is a document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners.
What is Dividends?
Dividends is where the average costs (of production, distribution and sales) fall as the business increases the amount of product that it produces, distributes and sells.
What is a Grant?
A Grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back.
What is a Hostile Takeover?
A Hostile Takeover is a takeover of one company (called the ‘target company’) by another (called the ‘acquirer’) that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved.
What is Income Tax?
Income Tax is tax that someone pays based on their personal income (the money that they earn).
What is Limited Liability?
Limited Liability is when the business owner or owners are only responsible for business debts up to the value of their financial investment in the business.
What is profits?
Profits is the amount of money made after all costs are deducted.
Stock market
A centralised market where business shares are traded