BUSINESS MANGAEMNt

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60 Terms

1

Goods

Physical products produced and sold to customers, such as laptops, books, contact lenses, perfumes, and children's toys.

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2

Needs

The basic necessities that a person must have to survive, including food, water, warmth, shelter, and clothing.

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3

Primary sector

Businesses involved in the cultivation or extraction of natural resources, such as farming, mining, quarrying, fishing, oil exploration, and forestry.

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4

Production

The process of creating goods and/or services, adding value in the process.

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5

Quaternary sector

Sub-category of the tertiary sector, businesses involved in intellectual and knowledge-based activities that generate and share information, such as research organizations.

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6

Secondary sector

Businesses concerned with the construction and manufacturing of products.

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7

Services

Intangible products sold to customers, such as services provided by airlines, restaurants, cinemas, banks, health and beauty spas, schools, and hospitals.

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8

Tertiary sector

Businesses involved with the provision of services to customers.

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9

Adding value

The practice of producing a good or service that is worth more than the cost of the resources used in the production process.

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10

Wants

People's desires, or things they would like to have, such as new clothes, smartphones, and overseas holidays.

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11

Businesses

Organizations involved in the production of goods and/or the provision of services.

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12

Consumers

The people or organizations that actually use a product.

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13

Customers

The people or organizations that buy the product.

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14

Entrepreneurs

People who manage, organize, and plan the resources needed for business activity in pursuit of organizational objectives; risk takers who exploit business opportunities for profit.

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15

Entrepreneurship

The collective knowledge, skills, and experiences of entrepreneurs.

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16

Cooperatives

For-profit social enterprises set up, owned, and run by their members, who might be employees and/or customers.

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17

A company

A limited liability business owned by shareholders, with a separate legal identity from its owners.

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18

Deed of partnership

The legal contract signed by the owners of a partnership that specifies the name, responsibilities, and profit/loss proportions of each partner.

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19

Incorporation

A legal distinction between the owners of a company and the business, ensuring owners are protected by limited liability.

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20

An initial public offering (IPO)

When a business sells all or part of its business to shareholders on a public stock exchange for the first time.

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21

Limited liability

A restriction on the amount of money that owners can lose if the business goes bankrupt; shareholders cannot lose more than their investment in the company.

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22

Non-governmental organizations (NGOs)

Private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to earn a profit.

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23

Partnerships

A type of private sector business entity owned by 2-20 people (partners) who share responsibilities and burdens.

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24

The private sector

The part of the economy run by private individuals and businesses, rather than by the government.

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25

A privately held company

A business owned by shareholders with limited liability, whose shares cannot be bought or sold on a Stock Exchange.

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26

A publicly held company

An incorporated limited liability business that allows shareholders to buy and sell shares via a public Stock Exchange.

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27

The public sector

The part of the economy controlled by the government, including state healthcare and education services.

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28

A sole trader

A self-employed person who runs the business on his/her own, having exclusive responsibility for its profits or losses.

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29

Social enterprises

Revenue-generating businesses with social objectives at their core, reinvesting profits for social purposes.

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30

A stock exchange

A marketplace for trading stocks and shares of publicly held companies.

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31

Unlimited liability

A feature of sole traders and partnerships where they are personally responsible for all debts.

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32

Business plan

The document that sets out a business idea or proposition, including the objectives, resources (marketing, operations, personnel and finance) and corporate strategies.

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33

Executive summary

A synopsis or abstract of the information provided in the main section of a business plan, highlighting the key points and conclusions.

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34

Corporate social responsibility (CSR)

The conscientious consideration of ethical and environmental practice related to business activity. A business that adopts CSR acts morally towards all of its various stakeholder groups and the well-being of society as a whole.

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35

Ethical Code of Practice

The documented beliefs and philosophies of an organisation, so that people know what is considered acceptable or not acceptable within the organisation.

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36

Ethical Objectives

Organisational goals based on moral guildlines, determined by the business and/or society, which direct and determine decision-making.

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37

Ethics

The moral principles that guide decision-making and business strategy. Morals are concerned with what is considered to be right or wrong, from society’s point of view.

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38

Mission Statement

The declaration of an organization's overall purpose. It forms the foundation for setting the objectives of a business.

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39

Objectives

What an organization strives to achieve. They are the goals of an organization, such as growth, profit, protecting shareholder value and ethical objectives.

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40

Strategic Objectives

The longer-term goals of a business, such as profit maximization, growth, market standing and increased market share.

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41

Strategies

The various plans of action that businesses use to achieve their targets. They are the long-term plans of the organization as a whole.

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42

Tactical Objectives

Short-term goals that affect a unit of the organization. They are specific goals that guide the daily functioning of certain departments or operations.

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43

Tactics

The short-term plans of action that businesses use to achieve their objectives.

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44

Vision Statement

An organization's long-term aspirations, i.e. where the business ultimately wants to be.

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45

Conflict

Situations where stakeholders have disputes or differences regarding certain issues or matters. This can lead to arguments and tensions between various stakeholders groups.

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46

Customers

The clients of a business. As a key external stakeholder group, customers seek to have value for money, such as competitive prices and good quality products.

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47

Directors

Senior executives who have been elected by the company’s shareholders to address business activities on behalf of their owners.

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48

Employees

Staff of an organisation. They have a stake (an interest and involvement) in the organisation they work for.

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49

External Stakeholders

Individuals and organisations not part of the business but have a direct interest in its activities and performance. Examples include customers, suppliers, and the government.

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50

Fiananciers

The financial institutions and individual investors who provide sources of finance for an organisation. They are interested in the organisation’s ability to generate profits and to repay debts.

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51

Government

The ruling authority within a state or country. As an external stakeholder group, the government is interested in businesses complying with the law with regards to the conduct of business activities.

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52

Internal stakeholders

Members of the organization, namely the employees, managers, directors and shareholders (owners) of the business.

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53

The local community

The general public and local businesses that have a direct interest in the activities of an

organization, namely to create jobs and to conduct business activities in a socially responsible way.

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54

Managers

Internal group of stakeholder responsibly for overseeing the daily operations of the business.

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55

Pressure Groups

Individuals with a common concern (such as environmental protection) who seek to place demands on organizations to act in a particular way or to influence a change in their behaviour.

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56

Stakeholder Conflict

Differences in the varying needs and priorities of the various stakeholder groups of a business.

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57

Stakeholder mapping

A model that assesses the relative interest of stakeholders and their relative influence (or power)

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58

Shareholders (or stockholders)

The owners of a limited liability company. Shares in a company can be held by individuals and other organizations.

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59

Stakeholders

Individuals or organizations with a direct interest (known as a stake) in the activities and performance of a business, such as shareholders, employees, customers and suppliers.

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60

Suppliers

An external stakeholder group that provide a business with stocks of raw materials, component parts and finished goods needed for production. They can also provide

commercial services, such as maintenance and technical support.

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