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vocabulary Flashcards

(62 cards)

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1
Q

need

A

a good or service essential for living

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2
Q

want

A

a good or service which people would like to have, but is not essential for living.
People’s wants are unlimited

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3
Q

economic problem

A

there exist unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity

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4
Q

factors of production

A

resources needed to produce goods or services. there are 4 factors of production and they are in limited supply. they are -> land, labour, capital, enterprise

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5
Q

scarcity

A

lack of sufficient products to fulfill the total wants of the population

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6
Q

opportunity cost

A

next best alternative given up by choosing another item (what you lose due to a decision)

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7
Q

specialisation

A

occurs when people and businesses concentrate on what they are best at

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8
Q

division of labour

A

when the production process is split up into different tasks and each worker performs one of these tasks. it is a form of specialisation.

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9
Q

businesses

A

combine factors of production to make products (goods and services) which satisfy people’s wants

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10
Q

added value

A

difference between the selling price of a product and the cost of brought-in materials and components

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11
Q

primary sector

A

the primary sector of industry extracts and uses the natural resources of Earth to produce raw materials used by other businesses

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12
Q

secondary sector

A

the secondary sector of industry manufactures goods using the raw materials provided by the primary sector

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13
Q

tertiary sector

A

the tertiary sector of industry provides services to consumers and the other sectors of industry

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14
Q

de-industrialisation

A

occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country

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15
Q

mixed economy

A

economy that has both a private sector and a public (state) sector

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16
Q

private sector

A

businesses not owned by the government

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17
Q

public sector

A

government/state owned and controlled businesses and organisations

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18
Q

capital

A

the money invested into a business by the owners

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19
Q

entrepreneur

A

a person who organises, operates, and takes the risk for a new business venture

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20
Q

business plan

A

a document containing the business objectives and important details about the operations, finance, and owners of the new business

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21
Q

capital employed

A

the total value of capital used in the business

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22
Q

internal growth

A

occurs when a business expands its existing operations

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23
Q

external growth

A

when a business takes over or merges with another business. it is often called integration as one business is integrated into another one

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24
Q

takeover / acquisition

A

when one business buys out the owners of another business, which then becomes part of the ‘predator’ business (the business which has taken it over)

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25
merger
when the owners of 2 businesses agree to join their businesses together to make 1 business
26
horizontal integration / merger
when one business merges with or takes over another business in the same industry at the same stage of production
27
vertical integration / merger
when one business merges with or takes over another business in the same industry but at a different stage of production. vertical integration can be forward or backward. (forward is with later stage of production - closer to consumer like tertiary sectors. (primary -> secondary -> tertiary) backward is with a earlier stage of production - closer to raw material supplies like primary sectors (tertiary -> secondary -> primary))
28
conglomerate integration / diversification
when one business merges with or takes over a business in a completely different industry
29
sole trader
a business owned by 1 person
30
limited liability
the liability of shareholders in a company is limited to only the amount they invested
31
unlimited liability
the owners of a business can be held responsible for the debts of the business they own. their liability is not limited to the investment they made in the business.
32
partnership
a form of business in which 2 or more people agree to jointly own a business
33
partnership agreement
written and legal agreement between business partners. it is not essential for partners to have such an agreement but it is always recommended.
34
unincorporated business
one that does not have a separate legal identity such as sole traders and partnerships
35
incorporated businesses
companies that have a separate legal status from their owners
36
sharehoders
owners of a limited company. they buy shares which represent part-ownership of the company
37
private limited companies
businesses owned by shareholders but they cannot sell shares to the public.
38
public limited companies
businesses owned by shareholders but they can sell shares to the public and their shares are tradeable on the Stock Exchange
39
annual general meeting
legal requirement for all companies. shareholders may attend and vote on who they want to be on the Board of Directors for the coming year
40
dividends
payments made to shareholders from the profits (after tax) of a company. they are the return to shareholders for investing in the company
41
franchise
business based upon the use of the brand names, promotional logos and trading methods of an existing successful business. The franchisee buys the license to operate this business from the franchisor (branches)
42
joint venture
where 2 or more businesses start a new project together, sharing capital, risks and profits
43
public corporation
business in the public sector that is owned and controlled by the state (government)
44
business objectives
aims or targets that a business works towards
45
profit
total income of a business (revenue) less total costs
46
market share
percentage of total market sales held by one brand or business
47
social enterprise
has social objectives as well as an aim to make a profit to reinvest back into the business
48
stakeholder
any person or group with a direct interest in and is directly affected by the performance and activities of a business
49
motivation
the reason why employees want to work hard and work effectively for the business
50
wage
payment for work, usually paid weekly
51
time rate
the amount paid to an employee for 1 hour of work
52
piece rate
amount paid for each unit of output
53
salary
payment for work, usually paid monthly
54
bonus
additional amount of payment above basic pay as a reward for good work
55
commission
payment relating to the number of sales made
56
profit sharing
a system whereby a proportion of the company's profits is paid out to employees
57
job satisfaction
the enjoyment derived from feeling that you have done a good job
58
job rotation
involves workers swapping around and doing each specific task for only a limited time and then changing around again
59
job enrichment
involves looking at jobs and adding tasks that require more skill and/or responsibility
60
teamworking
involves using groups of workers and allocating specific tasks and responsibilities to them
61
training
the process of improving a worker's skills
62
promotion
the advancement of an employee in an organisation, for example, to a higher job/managerial level

Business (7 decks)

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