Section 1 - Business Activity and the Changing Environment Flashcards Preview

Edexcel International GCSE in Business Studies (4BS0) > Section 1 - Business Activity and the Changing Environment > Flashcards

Flashcards in Section 1 - Business Activity and the Changing Environment Deck (74)
Loading flashcards...
1

Business

An organisation which produces goods and services.

2

Consumer goods

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

3

Entrepreneurs

People who take risks and set up businesses.

4

Goods

Physical products like a mobile phone, packet of crisps or shoes.

5

Needs

Basic requirements for human survival.

6

Private sector

Business organisations owned by individuals or groups of individuals.

7

Public sector

Business organisations owned by central or local government.

8

Scarce resources

The amount of resources available is limited.

9

Services

Non-physical products like banking, car washing and waste disposal.

10

Stakeholder

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

11

Wants

People’s desires for goods and services.

12

Mission statement

A brief summary of a firm’s aims and objectives.

13

Objectives

The goals or targets set by a business.

14

Profit maximisation

Making as much profit as possible in a given time period.

15

Deed of partnership

A binding legal document which states the formal rights of partners.

16

Franchise

Where a business (the franchisor) allows another operator (the franchisee) to trade under their name.

17

Incorporated businesses

Where a business has a separate legal identity from that of its owners.

18

Limited liability

Where a business owner is only liable for the original amount of money invested in the business.

19

Limited liability partnership

A partnership where all partners have limited liability.

20

Limited partnership

A partnership where some partners contribute capital and enjoy a share of the profit but do not take part in the running of the business.

21

Partnership

A business owned by between 2-20 people.

22

Sole trader

A business owned by a single person.

23

Unincorporated business

Those businesses where there is no legal difference between the owner and the business.

24

Unlimited liability

Where the owner of the business is personally liable for all business debts.

25

Flotation

The process of a company ‘going public’.

26

Joint venture

Where two or more companies share the cost, responsibility and profits from a business venture.

27

Limited company

A business organisation which has a separate legal identity from that of its owners.

28

Stock market

A market for shares in plcs.

29

Globalisation

The growing integration of the world’s economies.

30

Multinational

A large business with markets and production facilities in several different countries.