business key definitions

Premises

The physical location where a business operates, including buildings,

land, and facilities.

Business

An organization or entity engaged in commercial, industrial, or

professional activities with the aim of earning profit.

Organisation

A group of people working together in a structured manner to

achieve common goals or objectives.

Goods

Tangible products that are produced to satisfy the needs and wants of

consumers.

Services

Intangible activities or benefits provided by businesses to satisfy the needs and wants of consumers.

Output

The total quantity or volume of goods or services produced by a business within a given period.

Human resources

The personnel or workforce employed by a business, including both employees and management.

Consumer goods

Products intended for direct consumption or use by individuals to satisfy their needs and wants.

Producer goods

Goods used by businesses to produce other goods or services.

Needs

Basic requirements essential for human survival and well-being.

Wants

Desires or preferences for goods and services that are not essential for survival but contribute to overall satisfaction.

Infinite

Unlimited or without boundaries in quantity or availability.

Finite

Limited or having a definite end in quantity or availability.

Scarce

1. Resources that are insufficient to satisfy all human wants and needs.

Private sector

The part of the economy owned and operated by private individuals or companies, typically driven by profit motives.

Public sector

The part of the economy controlled and operated by the government, providing goods and services for the public good.

Stakeholder

Individuals or groups who have an interest or concern in the activities and outcomes of a business.

Entrepreneur

An individual who starts, operates, and assumes the risks of a business venture in pursuit of profit.

Dispute

A disagreement or conflict between parties, often requiring resolution through negotiation or legal means.

Motivate

To inspire or encourage individuals or groups to take action or achieve specific goals.

Machinery

Equipment, tools, and devices used in production processes to manufacture goods or deliver services.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company's operating performance.

Objectives

Specific and measurable goals or targets that a business aims to achieve within a certain time frame.

Executives

Senior managers or leaders within a company responsible for making strategic decisions and overseeing its operations.

Diversify

The act of expanding or varying the range of products, services, or markets offered by a business to reduce risk and capture new opportunities.

Financial return

The monetary gains or profits realized from an investment or business activity, often expressed as a percentage of the initial investment.

Profit maximisation

The goal of maximizing the financial gains or profits of a business by increasing revenue or reducing costs to the greatest extent possible.

Shareholder

An individual or entity that owns shares or equity in a company and thus has ownership rights and interests in its assets and profits.

Dividends

Payments made by a company to its shareholders as a distribution of profits, usually on a regular basis and in proportion to the number of shares owned.

Profit satisfying

A managerial approach that seeks to achieve a satisfactory level of profit rather than maximizing profits, balancing financial goals with other objectives such as social responsibility or long-term sustainability.

Negotiation

The process of discussion and bargaining between parties to reach a mutually acceptable agreement or settlement.

Outcome

The result or consequence of a particular action, decision, or event.

Evolve

The process of gradual development or change over time, often involving adaptation to new circumstances or environments.

sustained

Continuous or prolonged over time, often referring to consistent performance or growth in business operations.

Legislation

Laws or regulations enacted by a government or legislative body that govern various aspects of business conduct, operations, and relationships.

Emissions

The release of pollutants or greenhouse gases into the environment, often associated with industrial or transportation activities.

Automation

The use of technology and machinery to perform tasks or processes with minimal human intervention, increasing efficiency and reducing labor costs.

Economies of scale

Cost advantages that result from increased production or scale of operation, leading to lower average costs per unit as output expands.

Large business

A company with a significant scale of operations, typically characterized by a large workforce, extensive resources, and a wide market presence.

Small business

A business with relatively limited scale of operations, often independently owned and operated, with fewer employees and resources compared to larger corporations

Revenue

The total income or sales generated by a business from its primary activities, typically calculated before deducting expenses and taxes.

Legal status

The classification or designation of a business or organization in accordance with the laws and regulations of a particular jurisdiction.

Innovator

An individual or entity that introduces new ideas, methods, products, or processes, often leading to advancements or improvements in various fields.

Labour

The human effort or work contributed to the production of goods or services, often involving physical or mental exertion.

Unincorporated

A business or organization that has not been formally registered as a separate legal entity distinct from its owners or members.

Incorporated

A business or organization that has been formally registered and recognized as a separate legal entity with rights and liabilities distinct from its owners or members.

Sole trader

A business owned and operated by a single individual who retains all profits and is personally liable for all debts and obligations.

Unlimited Liability

The legal obligation of a business owner to personally assume all debts and liabilities of the business without limit, risking personal assets.

Partnership

 A business structure in which two or more individuals or entities agree to share ownership, profits, and liabilities.

Deed of partnership

A legal document that outlines the terms, rights, and responsibilities of partners in a partnership agreement.

Legally binding

A formal agreement or contract that is enforceable by law and obligates the parties involved to fulfill their agreed-upon terms and conditions.

Limited partnership

A partnership in which some partners have limited liability and others have unlimited liability, typically with at least one general partner and one or more limited partners.

Limited liability

The legal protection for business owners or shareholders that limits their personal liability for the debts and obligations of the business to the amount of their investment.

Audits

Systematic examinations or reviews of financial records, processes, or operations conducted by independent auditors to ensure accuracy, compliance, and integrity

Comply

To adhere to or conform with laws, regulations, standards, or requirements set forth by authorities or governing bodies.

Franchise

A business arrangement in which one party (the franchisor) grants another party (the franchisee) the right to use its trademark, business model, and support system in exchange for fees and royalties.

Merchandise

Goods or products available for sale or trade, often referring to items offered by retailers or wholesalers.

Social Enterprise

A business or organization that operates with the primary objective of achieving social or environmental goals while also generating revenue.

Cooperative (a type of structure)

 A business owned and democratically controlled by its members, who share profits or benefits according to their participation or patronage.

Consumer Cooperative

A cooperative owned and operated by consumers who purchase goods or services from the cooperative.

Retail Cooperative

A cooperative that operates in the retail sector, owned and controlled by its consumer members.

Worker Cooperative

A cooperative where the employees are also the owners and participate in decision-making processes.

Charity

A nonprofit organization established to provide voluntary assistance, support, or resources to individuals, communities, or causes in need.

Accountable

Responsible or answerable for actions, decisions, or obligations, often involving transparency and justification of conduct.

Transparent

openness and clarity in business operations, decision-making processes, or financial reporting, allowing for easy understanding and scrutiny by stakeholders.

Venture Capitalists

Investors or firms that provide funding to startup or early-stage companies in exchange for equity ownership, with the expectation of high returns on investment.

Sue

1. To initiate legal proceedings against a person or entity in a court of law to seek damages or remedies for perceived wrongs or violations of rights.

Limited companies

1. Businesses or corporations with limited liability, where shareholders' liability is restricted to the amount invested in the company.

Chairperson

1. The head or presiding officer of a board of directors or a meeting, responsible for leading discussions, ensuring order, and representing the organization.

Certificate of Incorporation

1. A legal document issued by authorities confirming the formation and registration of a company as a separate legal entity.

Private Limited Company (LTD)

A type of limited liability company whose shares are not publicly traded, often denoted by "Ltd." at the end of its name.

Stock Market

A platform or exchange where securities, such as stocks and bonds, are bought and sold by investors.

Stake

1. A financial interest, ownership, or involvement in a business, project, or venture, often representing a claim on its assets or profits.

Public Limited Company (PLC)

 A company whose shares are traded publicly on a stock exchange, offering ownership to the general public and subject to stricter regulatory requirements.

Prospectus

A legal document that provides information about a company's business operations, financial performance, and investment opportunities to potential investors.

Regulatory Control

Governmental oversight and regulation of businesses or industries to ensure compliance with laws, standards, and ethical practices.

Floatation

The process of making a company's shares available for public trading on a stock exchange through an initial public offering (IPO).

Multinational Company

A corporation that operates in multiple countries, with production facilities, sales operations, and subsidiaries in different parts of the world.

Issue (shares)

The process of offering and distributing shares of a company to investors, often to raise capital for business expansion or operations.

Productivity

1. The efficiency of production processes or the output generated per unit of input, often measured by factors such as output per hour or per worker.

Public corporations

Companies or organizations established and owned by the government to provide essential services or undertake specific public functions.

Portfolio

A collection of investments, assets, or projects held by an individual, organization, or fund, often diversified to manage risk and optimize returns.

Infrastructure

.The basic physical and organizational structures and facilities needed for the operation of a society, industry, or enterprise, such as roads, utilities, and communication systems.

Natural Monopoly

A market situation in which a single firm can efficiently serve the entire market demand due to high barriers to entry or economies of scale.

Subsidies

Financial assistance or support provided by the government to businesses, industries, or individuals to reduce costs, stimulate production, or achieve social or economic objectives.

Privatisation

The process of transferring ownership or control of government-owned or public-sector enterprises to private individuals or companies.

Primary sector

The sector of the economy focused on the extraction and production of raw materials and natural resources, such as agriculture, forestry, fishing, mining, and quarrying.

Secondary sector

The sector of the economy involved in manufacturing and processing activities, transforming raw materials into finished goods, and adding value to products.

Assembly plant

A facility where components or parts are assembled to manufacture finished products, often a key part of the production process in industries such as automotive or electronics.

Tertiary sector

The sector of the economy that encompasses services and activities that do not directly produce physical goods but instead provide support, distribution, and facilitation of goods and services, such as retail, transportation, banking, education, and healthcare.

De-industrialization

1. The decline or reduction in the industrial sector of an economy, often characterized by the loss of manufacturing jobs, closure of factories, and shift towards service-based industries.

Quaternary Sector

The sector of the economy that involves knowledge-based activities and services focused on research, development, information technology, education, and consultancy.

Proportion

1. The comparative relationship or ratio between different elements, such as the distribution of resources, income, or activities within an economy or society.

Relocate

1. The act of moving a business, industry, or residence to a new location, often for reasons such as cost savings, access to resources, or expansion opportunities.

Fracking

1. Short for hydraulic fracturing, a method used to extract natural gas and oil from underground rock formations by injecting high-pressure fluid into the rock to create fractures, allowing the release of trapped hydrocarbons.

Brownfield sites

1. Previously developed land or urban areas that are abandoned, derelict, or underutilized, often contaminated from past industrial or commercial activities, but potentially suitable for redevelopment or regeneration.

Greenfield sites

1. Untouched or undeveloped land, typically located outside urban areas, that has not been previously built upon or used for industrial or commercial purposes, offering opportunities for new development projects.