BM REDEMPTION SAC Chapter 1 Flashcards
(29 cards)
balance of payments
a record of a country’s trade and financial transactions with the rest of the world
business
any activity conducted by an individual or individuals to produce and sell goods and services that
satisfy the needs of society, as well as making profit
business opportunity
a set of circumstances that presents itself as an avenue to success
corporate social responsibility
managing a business in such a way that the broader social welfare of the
community, including its employees, customers, suppliers and the environment, is taken into consideration when
making business decisions
decision-making
the ability to identify the options available and then choose a specific course of action from the
alternatives
economic growth
an increase in the real value of goods and services over a set period of time
economy
a system set up to determine what to produce, how to produce and to whom production will be
distributed
effectiveness
a measure of whether the business is doing the right things — those that are most important to the
success of the business
efficiency
a measure of how well we do things; for example, if we are able to produce more outputs from the
same inputs, we have become more efficient at using these inputs
entrepreneur
a person who is willing to seize opportunities to start and operate a business, and is prepared to
take risks in the hope of making a profit
entrepreneurship
the act of starting and operating a new business in response to opportunities, assuming all the
risk in the hope of making a profit
exports
goods or services sold by one country to individuals, businesses or governments in another country with
the aim of extending sales and market penetration
feasibility study
an assessment of the practicality and potential for success of a proposed business idea
financial independence
the capacity to support a lifestyle without having to be employed or be dependent on
others
goal
what a business expects to achieve over a set period of time
industry
the classification of groups of businesses related to the particular good or service they produce
innovation
either creating a new good, service or process, or significantly improving an existing one
manager
a person who has responsibility for overseeing the operations of the business to ensure that it
successfully achieves its goals
market conditions
the features of a market into which a new good or service is to be introduced, including
factors such as the number of potential customers, level of competition and potential for growth
market need
the goods or services that customers require that are not readily available
market research
a process of systematically collecting, recording and analysing information concerning a
specific market
mission statement
describes what the business does and how it will achieve its vision
personal independence
the capacity to be in control of decisions that affect one’s everyday actions or activities
productivity
a measure of business efficiency comparing output produced with the quantity of inputs. It is
calculated using the formula: Productivity = outputs/inputs
