Unit 1 - What is business Flashcards Preview

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Flashcards in Unit 1 - What is business Deck (15):
1

Gross Domestic Product (GDP)

It measures the total value of the production of an economy over a period of time

2

Mission Statement

Sets out a business's overall purpose to direct and stimulate the entire organisation

3

Stakeholder

Individuals or groups who have an interest in a business

4

Revenue

The earnings or income generated by a firm as a result of its trading

5

Profit

The surplus of total revenue over total costs for a business over a trading period

6

Unlimited liability

Occurs when an individual or a group of individuals is personally, responsible for all the actions of their business

7

Limited liability

This means that in the event of financial difficulties, the personal belongings of shareholders are safe

8

Market capitalisation

The total value of the issued shares of a public limited company

9

Incorporation

A process of establishing a business as a separate legal identity that allows it to benefit from limited liability

10

Social enterprise

A business that has social aims and trades in order to benefit the community or society in general

11

Sole trader

A business that is owned and managed by one person, but it may employ other people

12

Demand

The amount of a product that consumers are willing and able to buy at any given price over a period of time

13

Interest rates

The price of borrowing money

14

Fair trade

A social movement that exists to promote improved trading terms and living conditions for producers in less-developed countries

15

Sustainable production

This occurs when the supply of a product does not impose costs on future generations by, for example, depleting non-renewable resources