CAIE AS Level Business (9609) Definitions

This set of flashcards covers essential vocabulary and definitions from the CAIE AS Level Business lecture notes.

Enterprise

Action of showing initiatives to take risk to start up a business.

Consumer Goods

Physical and tangible goods sold to the general public, including durable and non-durable goods.

Consumer Services

Non-tangible products sold to the general public, such as insurance and hotel accommodation.

Customer

An individual, group, or organization that purchases goods and services from a business.

Factor of Production

Resources required by a business to commence production of goods and services.

Capital Goods

Physical goods the industry uses to aid in producing other goods and services.

Adding Value

Increasing the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.

Opportunity Cost

The benefit of the next most desired option given up.

Entrepreneur

Someone who takes the financial risk of starting and managing a new venture.

Branding

The process of differentiating a product by developing a symbol, name, image, or trademark.

Multinational Business (MNC)

A business that has its head office in one nation but operates in other countries.

Intrapreneur

An employee who takes direct responsibility for turning an innovative idea into a profitable product or venture.

Business Plan

A written document that describes a business, its objectives, strategies, financial forecasts, and market.

Private Limited Company

A small to medium-sized business owned by shareholders, not allowed to sell shares to the general public.

Public Limited Company

A limited company with the legal right to sell shares to the general public.

Sole Trader

A business owned and controlled by one individual, who provides finance and keeps all profits.

Partnership

A business formed by two or more people who share capital investment and responsibilities.

Limited Liability

Only the amount invested in the company is at risk if the company fails.

Unlimited Liability

Owners of the business bear full legal responsibility for the business debts.

Franchise

A business that uses the name and trading systems of an existing successful business.

Joint Venture

An agreement where two or more businesses work closely together on a specific project.

Social Enterprise

A business that focuses on social objectives and reinvests most profit back into the business.

Triple Bottom Line

Three objectives of social enterprise: Economic, Social, and Environmental.

Market Share

Sales of a business as a proportion of total market sales.

Organic Growth

Expansion of a business by establishing new outlets or facilities.

External Growth

Expansion through integration or takeover of another business.

Horizontal Merger

Integration with a business in the same industry and same stage of production.

Vertical Integration

Integration with a business within the same industry but different stages of production.

Synergy

The concept that the combined business is more successful than its separate entities.

Corporate Social Responsibility (CSR)

The accountability of businesses for their impact on society and stakeholders.

SMART Objectives

Aims that are specific, measurable, achievable, realistic, and time-limited.

Stakeholders

Individuals or groups who can be affected by or have an interest in an organization's actions.

Trade Union

Organizations of workers aiming to improve pay and working conditions.

Stakeholder Theory

The view that businesses have responsibilities to various groups, not just shareholders.