Economics Semester 2

Insolvency

Inability to pay back one's debts

Dividend

a sum of money paid regularly by a company to its shareholders out of its profits

Government bond

A debt issued by the government to support their activities, acting as a loan to its buyers

Superannuation

regular payment made into a fund by an employee toward a future pension

Life insurance

a contract where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period

Risk-averse investor

an investor who prefers lower returns with known risks rather than higher returns with unknown risks

Ethics

A set of moral principles that a business needs to establish and follow

Corporate Social Responsibility (CSR)

A self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public

Brand

a type of product manufactured by a particular company under a particular name

Competition

The rivalry that occurs among sellers in their desire to seek and satisfy a market

Unique selling point (USPs)

Marketing that makes a product appear different from others in the market

Competitive advantage

A point of difference or superiority held over a businesss competitors

Market

Any place where the sellers of a particular good or service can meet with the buyers of that good and service and where there is potential for a transaction to take place

Market share

The percentage of total sales in a market held by one brand or business

Brand leader

The brand in the market with the largest share

Monopoly

Market containing a single business

Open innovation

The practice of businesses and organizations sourcing ideas from external sources as well as internal ones

Product differentiation

The characteristics that make your product or service stand out to your target audience

Social responsibility

Ethical theory in which individuals are accountable for fulfilling their civic duty, and the actions of an individual must benefit the whole of society

Stakeholder

A person, group, or organization with a vested interest, or stake, in the decision-making and activities of a business, organization, or project

List the 7 Ps

Product, Price, Place, Promotion, People, Process, Physical Evidence