chapter 1 What is a business Flashcards
(23 cards)
mission
long term aims and purpose
strategy
medium to long term plans
business objectives
-profit
-growth
-survival
-cash flow
-social and ethical factors
revenue
price per unit X quantity sold
fixed costs
costs that do not vary e.g. rent
variable costs
costs that change e.g. raw materials
total costs
sum of both fix and variable costs
semi-variable costs
elements of both fixed and variable costs
profit
total revenue - total costs
private sector organisations
owned and financed by private individuals
public sector organisation
state owned or government owned
unlimited liability
the owner is liable for all the debts the business may occur
limited liability
only there investments are at risk if the business bankrupts
unincorporated business
no didtinction between the owner and the business
-sole trader
-partnership
incorporated business
legal identity between the business and the owner
-private limited company
-public limited company
ordinary share capital
money given to the business by shareholders in return for a share certifigate so part ownership of the business
dividends
money from the company given to the shareholders
market capitalisation
shareholders
owner or share in a company
share price
price of a single share
interest rates
cost of borrowing money
