Chapters 1-4 Flashcards Preview

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Flashcards in Chapters 1-4 Deck (51)
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1

Ch1.p4. Premises

Buildings and land used by a shop or business
• e.g. factory and shops

2

Business

Organisation that produces goods and services

3

Organisation

Group, such as a club or business, that has formed for a particular purpose

4

Goods

Physical products, such as mobile phone, a packet of crisps or a pair of shoes

5

Services

Non-physical products, such as banking, car washing and waste disposal

6

Output

Amount of goods or work produced by a person, machine or factory

7

Human Resources

In some businesses, the department that deals with employing, training and helping people

8

Consumer goods

Goods and services sold to ordinary people (consumers) rather than businesses

9

Producer goods

Goods and services produced by one business for another

10

Needs

Basic requirements for human survival

11

Wants

People’s desires for goods and services

12

Infinite

Without limits in space or time

13

Finite

Having an end or a limit

14

Scarce

Resources with limited availability

15

Private sector

Business organisations owned by individuals or groups of individuals
• e.g. apple or porche

16

Public sector

Business organisations owned and controlled by central or local government
• e.g. public schools or health

17

Stakeholder

an individual or group with an interest in the operation of a business

18

Entrepreneur

Person who takes risks and sets up

19

EBITDA

earnings before interest, tax depreciation and amortisation

20

Objectives

Goals or targets set by a business

21

Executives

Managers in an organisation or company who help make important decisions

22

Diversify

If a business, company or country diversifies, it increases the range of goods or services it produces

23

Financial return

Monetary return

24

Profit maximisation

Making as much profit as possible in a given time period

25

Shareholders

Owners of limited companies

26

Dividends

Share of the profit paid to shareholders in a company

27

Profit satisficing

Making enough profit to satisfy the needs of the business owner(s)

28

Automation

Use of computers and machines instead of people to do a job

29

Economies of scale

Financial advantages (failing average costs) of producing something in very large quantities

30

Large business

A business that employs more than 250 people