BM DP1 Intro

finance and accounting

Business function to accurately manage the business’s assets and liability

Marketing

The function to identify and address the needs and wants of customers

operations management

the function to manage the process of converting raw materials and inputs of production into a finished product or to provide a service

secondary sector

a sector of business that manufactures raw materials and resources into their product

tertiary sector

sector of businesses that sells goods and services without having to go through the process of manufacturing

Quarternary sector

sector of a business that generates and shares information as their products

chain of production

the process of creation of final products through adding values to its inputting materials

entrepreneur

individuals who plan, organize, and manage a business as well as taking the financial risks in doing so.

sole traders

businesses owned and runned by a single individuals

partnership

businesses owned and runned by more than two or more people, the partners

limited liability company

businesses that are owned by its shareholders, who own the share of the company, a fractional ownership in a company.

publicly held company

businesses that are owned by shareholders, in which its shares are publicly traded on stock exchange

privately held comapny

businesses that are held by shareholders, in which its shares are owned by friends or families, a close circle of people and their shares are not publicly traded on stock exchange

for profit social enterprise

revenue generating business with the core objective to make social contributions through their operations and by using their retained surplus for the good of society.

cooperatives

businesses runned and owned by its members, where profits are equally shared among its members.

non governmental organizations

businesses that do not retain profit and aim to provide essential goods/services that are under-provided by governments, for the society’s well-being, but they are not part of any government organization or public sector

vision statement

the organization’s long-term goals and aspirations

mission statement

declaration of the organization’s underlying purposes and core values.

strategies

plans of actions used to achieve business objectives

tactics

the smaller scale actions used to follow strategies and achieve business objectives

corporate social responsibility

the business’s efforts to contribute to societal well-being through ethical and enviornmental business practices

stakeholders

anyone who has direct interest in or affected by the operations or performance of the busineeses

stakeholder conflict

conflict between different interests of stakeholders in business stemming from varying needs and perspectives of different stakeholders.

economies of scale

when businesses’ operation size grows and their production output expands, their operation becomes efficient and lead to a reduction in cost of production.

technical, financial, manegerial, specialisation, marketing, purchasing, risk-bearing

name all types of economies of scale

technological progress, inproved infrastructure, abandance of skilled worker, regional specialization

list all external economies of scale

diseconomies of scale

when the businesse’s size and production output becomes too big, their production becomes inefficient and production cost rises.

changing prices, effective and innovative marketing, product innovation, capital expenditure, staff hiring

list all internal growth

M&A, takeovers, joint ventures, strategic alliance, franchising

list all types of external growth