Definitions Flashcards
USP
Unique Selling Point
What is a business?
It is an organisation that exists to provide goods and services in exchange for profit.
Meaning of entrepreneur
Somebody that takes a risk to start a business
What is a costumer?
Someone who buys the product
What is a consumer?
Someone who uses the product
What are goods?
Product that is tangible
Meaning of social enterprise
A business that has a positive impact on society
What are services?
Products that are intangible
Meaning of interdependency
Business in a chain production that rely on one another
Meaning of deindustrialisation
Where there is a decline in manufacturing in a country and an increase in tertiary businesses
Meaning of enterprise
The skills of the people involved in businesses to identify business opportunities and bring resources together
Meaning of capital
Investment in equipment required to produce/run a business such as factories and machinery
Meaning of labour
The skills available and numbers of workers employed by a business
Meaning of land
Physical site on which a business is based and the natural resources required
What is opportunity cost?
It is the benefit lost of the next best alternative
Meaning of business environment
All factors outside of a business that can affect it
What is a sole trader?
A business that is owned and run by a single individual
Meaning of unlimited liability
Owners are personally responsible for the debts of the business
May have to sell your one possessions to pay business the money they owe
What are partnerships?
Partners are the joint owners of a business
Must have between 2 and 20 partners
Meaning of equal share
All partners get an equal share of profits and debts regardless of initial investment of hours worked
Meaning of limited companies
A company whose shares are traded publicly on the stock exchange and have limited liability
Meaning of private limited companies
A company whose shares are sold privately often to friends and family
PLC =
Limited companies
LTD =
Private limited companies
