Chapter 1 Flashcards
(23 cards)
Assets
items of value owned by a business
Balance of payments
a record of a country’s trade and finical 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 mentors
A person with extensive business experience who offers knowledge, wisdom and advice to a less experienced business manager or entrepreneur
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.
Economic Growth
When the real value of goods and services increases 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 id doing the right things- those that are most important to the success of the business
Efficiency
measures how well we do things.
e.g if we are able to produce more outputs with from the same inputs we have become more efficient at using these inputs.
Entrepreneur
A person who is willing the seize opportunities to start and operate a business, and is prepared to take risks to make a profit
Entrepreneurship
The ability and willingness to start, operate and assume the risk of a business venture in the hope of making profit.
Exports
Goods and services sold by one country to an individual, businesses or governments in another country with the aim of extending sales and market penetration
Feasibility study
An assessment of the particular and potential for success of a proposed business idea
Goal
What a business expects to succeed over a set period of time.
Industry
The classification of groups of businesses related tot the particular good or service they produce.
Innovation
either creating a new good, service or process, or significantly improving an existing one.
Market Conditions
the features of a market into which a new good or service is to be introduced, which include factors such as the number of potential customers, level of competition and potential for growth
Market research
A process of systematically collecting, recording and analyzing information concerning a specific period of time.
Market share
the proportion of total sales in a given market or industry that is controlled or held by a business, calculated for a specific period of time.
Mission statement
Describes what the business does and how it will achieve its vision.
Productivity
How many outputs we produce per input.
It is calculated using the formula: (productivity= outputs/inputs)
Profit
What is left after business expenses have been deducted from money earned from revenue.
