Business and its environment Flashcards
(44 cards)
Consumer goods?
the physical and tangible goods sold to the general public − they include durable consumer goods, such as cars and washing machines, and non-durable consumer goods, such as food, drinks and sweets, that can only be used once.
Consumer service ?
the non-tangible products sold to the general public − they include hotel accommodation, insurance services and train journeys.
Capital Goods?
the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.
Added Value ?
is the difference between the cost of purchasing raw materials and the price the finished goods are sold for.
entrepreneur?
someone who takes the financial risk of starting and managing a new venture.
Social enterprise?
a business with mainly social objectives that reinvests most of its profi ts into benefi ting society rather than maximising returns to owners
Triple bottom line?
the three objectives of social enterprises: economic, social and environmental.
Opportunity costs?
the benefi t of the next most desired option that is given up.
Private sector?
comprises businesses owned and controlled by individuals or groups of r individuals.
Public sector?
comprises organisations accountable to and controlled by central or local r government (the state).
Mixed economy?
economic resources are owned and controlled by both private and public sectors.
free-market economy?
economic resources owned largely by the private sector with very little state intervention.
Command economy?
economic resources owned, planned and controlled by the state.
Sole trader?
a business in which one person provides the permanent fi nance and, in r return, has full control of the business and is able to keep all of the profi ts.
Partnership?
a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities.
Limited liability?
t he only liability – or potential loss – a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder.
Private Limited company?
a small to medium-sized business that is owned by shareholders who are oft en members of the same family. Th is company cannot sell shares to the general public.
Shareholder?
a person or institution owning shares in a limited company.
Share?
a certifi cate confi rming part ownership of a company and entitling the shareholder to dividends and certain shareholder rights.
Public limited company?
a limited company, oft en a large business, with the legal right to sell shares to the general public – share prices are quoted on the national stock exchange.
Memorandum of association?
this states the name of the company, the address of the head offi ce through which it can be contacted, the maximum share capital for which the company seeks authorisation and the declared aims of the business.
Articles of association?
his document covers the internal workings and control of the business – for example, the names of directors and the procedures to be followed at meetings will be detailed.
Franchise?
a business that uses the name, logo and trading systems of an existing successful business.
joint venture?
two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
