Business Management

Retail

A type of market where goods and services are bought and sold.

Financial

A type of market where financial assets like stocks, bonds and currencies are exchanged.

Sole trader

The simplest form of business structure where one person is legally responsible for all aspects of the business.

Partnership

A business structure with 2 or more people who distribute income or losses between themselves.

Company

A business structure where one creates a legal entity that’s seperated from oneself and has the same rights as a natural person (can incur debt, sue and be sued).

Loss

When it costs more money to make the product than one receives in selling the product.

Revenue

Money one receives when selling the product.

Expenses

A cost that a business experiences in running its operations.

Break even

To reach a point in a business venture when the profits are equal to the costs.

Shares

A very small portion of a company.

Stock market

Platform where publicly listed companies’ shares are bought and sold.

Markets

Places or situations where buyers or sellers can make exchanges.

Labour

A type of market where workers or employees exchange labour for money.

Profit

A company’s surplus revenue after accounting for costs and expenses.

Invention

A whole new good or service.

Innovation

The process of improving how products are made or how things are done.

Competitive advantage

When businesses need to stand out to have an advantage over other competitors in a marketplace.

Marketing

The combination of market research and advertising.

Profit margins

The amount of net profit made divided by the total revenue made through sales.

Differentiation strategy

Businesses with a unique point of different and stands out from other products offered by the market.

Low cost of production strategy

When businesses lower how much it costs to produce a good or service.

Natural resources

Raw materials from the environment that are used in the production of goods and services.

Labour resources

People who provide the business with their skills and qualifications to conduct business activities.

Capital resources

Human-made objects used to produce goods and services.

Entrepreneurial resources

A resource needed to start, maintain and grow a business like a manager or money.

External factors

Any factors that the business doesn’t have direct control over.