Definitions Flashcards
(57 cards)
Business
A business is a organization designed to supply a product or service
Product
A product is anything that is capable of satisfying a customers need, it is a physical thing that you can touch.
Service
A service is an act that a business person carries out for you in exchange for money
4 factors of production
-Land
-Labour
-Capital
-Enterprise
Primary sector
The primary sector extracts raw materials from the planet
Secondary sector
In the secondary sector goods are from raw materials into finished goods
Teritary Sector
The teritary sector is all the support services for business
Sole Trader
A self-employed person who owns and runs their own business as an individual
Partnership
A legal arrangement that allows two or more people to share a responsibillity for a business (2-20 people)
LTD
A private type of corporation that limits the personal liability of the corporations shareholders
PLC
A public company that is legally allowed to offer its shares for sale to the public
Companies House
Any limited company or partnership business has to register with Companies House. These records are public and there is usually a fee to register.
Deed Of Partnership
A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners.
Dividents
A sum of money paid regularly by a company to its shareholders out of its profits.
Economies of scale
Where the average costs (of production, distribution and sales) fall as the business increases the amount of product that it produces, distributes and sells.
Grant
A grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back
Hostile Takeover
A takeover of one company (called the ‘target company’) by another (called the ‘acquirer’) that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved.
Income Tax
Tax that someone pays based on their personal income (the money that they earn).
Limited Liability
When the business owner or owners are only responsible for business debts up to the value of their financial investment in the business.
Profits
The amount of money made after all costs are deducted.
Share Capital
The money raised when a business becomes a public limited company by offering shares in the business in return for capital.
Shareholders
A part owner of a private or public limited company.
Shares
A percentage or portion of a company.
Stock Market
A centralised market where business shares are traded.
