PDFvers Business-Edexcel-IGCSE---Revision-Notes-(Unit-1-5)

Consumer goods

Goods and services sold to ordinary people (customers).

Producer goods

Goods and services produced by one business for another.

Stakeholder

An individual or group with an interest in the business.

Private enterprise

Business owned privately by individuals.

Social enterprise

A non-profit making organization, such as charities or clubs.

Public enterprise

Organizations owned by governments, such as education and health care.

SMART objectives

Objectives that are specific, measurable, realistic, and time-specific.

Unlimited liability

A legal status where the owner is personally responsible for all debts of the business.

Incorporated

A business that has a separate legal identity from its owners.

Franchisor

The owner of a franchise who provides the license for the franchisee to operate.

Franchisee

An individual who takes a license from the franchisor to sell products or services.

Limited liability

A legal structure where the owner's financial responsibility is limited to their investment in the business.

Private limited company

A company with a separate legal identity that limits the liability of its shareholders.

Public limited company

A company that sells its shares to the general public.

Prospectus

A document produced by a company that wants the public to buy its shares.

Globalization

The growing integration of the world's economies through the free movement of goods, services, and capital.

Monetary policy

Economic policy used by a government to control money supply and interest rates.

Fiscal policy

Government policy regarding taxation and spending to influence the economy.

Trade barriers

Measures designed to restrict trade to protect domestic producers.

Subsidies

Financial support given by the government to encourage production or reduce prices.

Market segmentation

The process of dividing a market into distinct groups of buyers with different needs or characteristics.

Product life cycle

The stages a product goes through from development to decline.

Breakeven point (BEP)

The level of output where total cost and total revenue are equal.

Quality assurance

Systematic measures taken to guarantee quality in products or services.

ISO 9000 certification

A standard that demonstrates a business's quality management system to improve effectiveness and customer satisfaction.

Unique selling point (USP)

Feature of a product that differentiates it from competitors and offers a competitive advantage.

Labor-intensive production

Production methods that rely more on human labor than on machinery.

Capital-intensive production

Production methods that use more machinery than labor.

Economies of scale

Cost advantages that a business obtains due to its scale of operation.

Diseconomies of scale

Increasing per-unit costs as a company grows larger.