Business Vocabulary

Vocabulary flashcards covering key concepts in business and economics from lecture notes.

Business Activity

The process of producing goods or services to satisfy consumers’ needs and wants.

Needs

Basic requirements for survival, such as food, water, and shelter.

Wants

Desires that people have which are not essential for survival, such as luxury items.

Scarcity

Limited availability of resources to meet unlimited wants.

Opportunity Cost

The next best alternative given up when making a decision.

Economic Sectors

Different categories of business activities.

Primary Sector

Industries involved in the extraction of natural resources, e.g., farming, mining.

Secondary Sector

Industries involved in manufacturing and construction, e.g., factories.

Tertiary Sector

Industries that provide services, e.g., retail, banking.

Private Sector

Businesses owned by individuals or groups, not by the government.

Public Sector

Businesses owned and operated by the government.

Enterprise

The actions of individuals who take the risk to start and run businesses.

Entrepreneur

A person who sets up and operates a business, taking on financial risks.

Business Plan

A document detailing the objectives, strategies, and financial forecasts of a business.

Start-ups

New business ventures in the early stages of development.

Measuring Business Size

Methods to evaluate the size of a business including: Number of Employees, Value of Output, Capital Employed.

Number of Employees

Total number of people working in the business.

Value of Output

Total value of goods or services produced by the business.

Capital Employed

Total amount of money invested in business operations.

Limitations

Potential issues with methods of measuring business size, such as differing interpretations or inconsistencies.

Internal Growth

Expansion of a business through increasing its own operations.

External Growth

Expansion through mergers or acquisitions with other businesses.

Business Failure

When a business cannot continue operations due to problems like poor management or financial difficulties.

New Business Risks

Higher likelihood of failure for new businesses due to lack of experience or financial instability.

Sole Trader

A business owned and operated by one person.

Partnership

A business owned and managed by two or more people sharing profits and responsibilities.

Private Limited Company (Ltd)

A company owned by shareholders with limited liability, where shares are not sold to the public.

Public Limited Company (Plc)

A company whose shares can be publicly traded on the stock exchange.

Franchise

A business model where a person buys the right to operate a branch of an existing business.

Joint Venture

A business arrangement where two or more parties agree to combine resources for a specific project.

Public Corporation

An organisation owned and managed by the government.