Unit 1 Flashcards
(109 cards)
1
Q
Business:
A
Organisation that produces G&S
2
Q
Organisation:
A
Group that’s formed for a particular purpose
3
Q
Goods:
A
Physical products, e.g. phone, shoes
4
Q
Services:
A
Non-physical products, e.g. car washing, banking
5
Q
Output:
A
Amount of goods/work produced
6
Q
Producer goods:
A
G&S produced by one business for another
7
Q
Consumer goods:
A
8
Q
Consumer goods:
A
G&S sold to ordinary people (consumers) rather than businesses
9
Q
Needs:
A
Basic requirements for human survival
10
Q
Wants:
A
People’s desires for G&S
11
Q
Premises:
A
Buildings and land used by a shop or business
12
Q
Infinite:
A
Without limits
13
Q
Finite:
A
Having and end or limit
14
Q
Scarce:
A
Resources with limited availability
15
Q
Private sector:
A
Business owned by individuals or group of individuals
16
Q
Public sector:
A
Business owned by government
17
Q
Stakeholder:
A
Individual or group with interest in the operation of the business
18
Q
Entrepreneur:
A
A person who takes the financial risk of setting up a business
19
Q
EBITDA:
A
Earnings before interest, tax, depreciation & amortisation
20
Q
Objectives:
A
Goals/ targets set by a business
21
Q
Executives:
A
Managers in a company who help make important decisions
22
Q
Diversify:
A
Increasing the range of G&S produced
23
Q
Profit maximisation:
A
Making as much profit as possible in given time period
24
Q
Financial return:
A
Monetary return
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 owners
28
Automation:
Use of computers & machines instead of people to do a job
29
Economies of scale:
Financial advantages of producing something in very large quantities
30
Large business:
A business that employs more than 250 people
31
Small business:
A business that employs fewer than 50 people
32
Revenue:
Money from the sale of G&S
33
Innovater:
Someone who intorduces changes & new ideas
34
Labour:
People employed in a business/ use in production
35
Unincorporated:
In business - no legal difference between owner & business
36
Incorporated:
Business that has separates legal identitiy from that of its owners
37
Sole trader:
Business owned by a single person
38
Unlimited liability:
Owner is personally liable for business debts - must pay with personal assets
39
Partnership:
Business owned by between 2 - 20 people
40
Deed of partnership:
Binding legal document that states the formal rights of partners
41
Limited partnership:
Where some partners contrii=bute capital + enjoy profit.. Don't take part in the running of the business
42
Audits:
Official examination of a comapny's financial records - checking if they are correct
43
Limited liability:
Owner only liable for original amount of money put in the business
44
Franchise:
Structure in which business allows another operator to trade under their name
45
Merchandise:
Goods that are being sold
46
Social enterprise:
Business aiming to improve human or environmental well-being. e.g. Charities
47
Cooperative:
Company in which all the people working there own an equal share of it
48
Consumer cooperative:
Cooperative owned by its customers
49
Retail cooperative:
Cooperative of retail members
50
Charities:
Organisations that give money, goods or help to people who are poor, sick, or in need
51
Venture capitalists:
Specialist investors who provide moneyfor business purpose, often to new businesses
52
Limited companies:
Business's that have a separate legal identity from that of their owners
53
Chairperson:
Someone who's in charge of a meeting or directs the work of an organisation
54
Stock market:
Market for shares in PLC's
55
PLC:
A public limited company is a business that is managed by directors and owned by shareholders
56
LTD:
Private limited company
57
Prospectus:
Document produced by a company that wants the public to buy its shares
58
Regulatory control:
official power to control an activity and to make sure that it is done in a satisfactory way
59
Flotation:
Process of a company 'going public'
60
Multinational company:
Large business with significant production or service operations in at least two different countries
61
Productivity:
Rate at which goods are produced, & the amount produced. In relation to the work, time and money needed to produce them
62
Public corporations:
Business's owned & controlled by the governnment
63
Portfolio:
Collection of business interests or products
64
Infrastructure:
Basic systems/structures a company/organisation needs in order to work properly
65
Natural monopoly:
Market where it's more efficient to have just one organisation meeting total market demand
66
Privatisation:
Transfer of public sector resources to the private sector
67
Primary sector:
Production involving extraction of raw materials
68
Secondary sector:
Production invloving conversion of raw materials to finished goods
69
Assembly plant:
Factory where parts are put together to make a finished product
70
Tertiary sector:
Production of services in the economy
71
De-industrialisation:
Decline in manufacturing
72
Trade bloc:
Group of countries situated in the same region that join together & enjoy trade free of barriers
73
Emerging economies:
Rapidly growing economies
74
Globalisation:
Growing integration of the world's economies
75
Monetary system:
System of money controlled by governments & central banks
76
Saturate:
To offer so much of a product that there's more than people want to buy
77
Predator:
Business that tries to use another's weakness to get advantages
78
Hostile takeover:
Takeover that the company being taken over doesn't want to agree to
79
Bid:
Offer to pay a particular price for something
80
Commodities:
Products that are bought and sold
81
Ventures:
New business activity that involves taking risks
82
Human capital:
People & their skills
83
Enterprise:
The activity of starting & running a business
84
Exploitation
Situation in which you constantly ask for something but give very little in return
85
Livelihood:
Way you earn money in order to live
86
Exports:
Goods & services sold overseas
87
Imports:
Goods & services bought from overseas
88
Visible trade:
Trade in physical goods
89
Invisible trade:
Trade in services
90
Balance of trade:
Difference between visible exports & visible imports
91
Transactions:
Business deals/actions, such as buyig or selling something
92
Exchange rate:
Value of one currency in terms of another
93
Merger:
Two or more business joing togetehr to form one new firm
94
Protectionism:
Use of trade barriers to protect domestic producers
95
Trade barriers:
Measures designed to restrict trade
96
Infant industries:
New industries that are yet to be established
97
Dumping:
When a business sells goods in another country, often below cost
98
Quota:
Physical limit on the quantity of imports allowed into a country
99
Subsidy:
Financial support given to a domestic producer to help compete with overseas firms
100
Interest:
Price of borrowed money
101
Monetary policy:
Using changes in interest rates & the money supply to manage the economy
102
Tax allowences:
Part of income that isn't taxed
103
Budgetry measures:
Actions taken by the government to influence business & the economy
104
Urbanisation:
process of constructing more & more buildins on rural land
105
Capital-intensive:
Use of relatively more machinery than labour in production
106
Sustainable development:
Idea that people should satisfy their basic needs & enjoy improved living standards without compromising the quality of life of future generations
107
Capital-employed:
Amount of money invested in a business
108
Overtrading:
Taking on more work than a business can afford o fund effectively
109
Inventory:
Stocks of goods
