Business In The Real World Flashcards
(16 cards)
Public limited company
Shares can be traded on stock exchange. And require a capital investment to be set up
Private limited company
Shares cannot be traded on stock exchange. It is privately set up
Stakeholder
Someone who has interest in the activities and decision making of a business
Main stakeholders
Share holders Employees Customers Suppliers Finance providers Government Local community Competitors Pressure groups
Dividend
A sum of money paid regularly by a company to its shareholders
Shareholders
Someone who owns a share in the business
Sold trader
Someone who sets up a business of their own
Unlimited liability
If something goes wrong the business owner will have to sacrifice what it owns to pay
Limited liability
When the business owners personal possessions are safe as a loss of limited
Revenue
Income that a firm receives from selling its goods or services. This can also be called a turnover. This is measured by the number of units sold x by the price
Total costs
Total costs are fixed costs plus variable costs
Fixed costs
Costs that do not change when a business changes its output
Variable costs
Costs that vary directly with the businesses level of output
Franchise
When a franchisor sells the rights to products to a franchise
Economies of scale
When a businesses unit cost of production fall as its output rises and the businesses expands
Diseconomies of scale
When the cost per unit increases as a business expands
