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45 Terms
1
Fixed capital
The stock of man-made resources such as machinery and tools used to make goods and services
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2
Repatriation (of profits)
Where a multinational returns the profits from an overseas venture to the country where it is based
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3
Consumer goods
Goods and services sold to ordinary people rather than businesses
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4
Joint venture
Where two or more companies share the cost, responsibility and profits from a business venture
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5
Factors of production
The resources used to produce goods and services. They include land, labour, capital and enterprise
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6
Specialisation
In business, the production of a limited range of goods
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7
Multinational
A large business with markets and production facilities in several different countries
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8
Business
An organisation which produces goods and services
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9
Flotation
The process of a company 'going public'
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10
Labour
The people used in production
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11
Capital intensive production
Production methods that make more use of machinery relative to labour
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12
De-industrialisation
The decline in manufacturing in favour of services
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13
Limited company
A business organisation which has a separate identity from that of its owners
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14
Entrepreneurs
People who take risk and set up businesses
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15
Entrepreneur
An individual who organises the other factors of production and risks their own money in a business venture
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16
Services
Non-physical products like banking, car washing and waste disposal
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17
Production
The transformation of resources into goods or services
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18
Secondary industry
Production involving the conversion of raw materials into finished goods
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19
Globalisation
The growing integration of the world's economies
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20
Tertiary industry
The production of services in the economy
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21
Stock market
A market for shares in PLCs
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22
Labour intensive production
Production methods that make more use of labour relative to machinery
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23
Goods
Physical products like a mobile phone, packet of crisps or a pair of shoes
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24
Division of labour
A specialisation in specific tasks of skills by an individual
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25
Primary industry
Production involving the extraction of raw materials from the earth
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26
Public sector
Business organisations owned by central or local government
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27
Stakeholders
An individual or group with an interest in the operation of a business
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28
Deed of partnership
A binding legal document which states the formal rights of partners
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29
Limited partnership
A partnership where some partners (sleeping partners) contribute capital and enjoy a share of the profit but do not take part in the running of the business
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30
Needs
Basic requirements for human survival
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31
Scarce resources
The amount of resources available is limited
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32
Limited liability
Where a business owner is only liable for the amount of money invested in the business
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33
Unincorporated business
Those businesses where there is no legal distinction between the owner and the business
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34
Profit maximisation
Making as much profit as possible in a given time period
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35
Objectives
The goals or targets set by a business
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36
Wants
People's desire for goods and services
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37
Private sector
Business organisations owned by individuals or groups of individuals
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38
Franchise
Where a business (the franchisor) allows another operator (the franchisee) to trade under their name
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39
Unlimited liability
Where the owner of a business is personally liable for all business debts
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40
Limited liability partnership
A partnership where all partners have limited liability
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41
Sole trader
A business owned by a single person
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42
Partnership
Where between two and twenty people own the business
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43
Incorporated business
Where the business has a separate legal identity from that of its owners
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Producer goods
Goods and services produced by one business for another
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