Business in the Real World Review

These flashcards cover key concepts, terms, and definitions from the lecture on 'Business in the Real World' to help with exam preparation.

What is the purpose of a business?

A business is an organization that produces goods or provides services to meet the needs and wants of customers.

What are stakeholders?

Individuals or organizations that are affected by and affect the activities of a business.

Define entrepreneurship.

The ability to take risks to develop a business idea and create new ventures.

What is opportunity cost?

The sacrifice made when choosing one option over another.

What does a good represent in business?

A physical product, such as clothing or food.

What is the difference between a customer and a consumer?

A customer is someone who buys a product; a consumer is someone who uses it.

What is a social enterprise?

A business set up to help society, rather than to make a profit.

What are the four factors of production?

Land, labor, capital, and enterprise.

What defines a sole trader?

A business owned and managed by one person, who has unlimited liability.

What is limited liability?

The financial responsibility of owners is limited to their investment in the company.

What is external growth in business?

Growth that occurs through mergers or acquisitions with other businesses.

What is Total Quality Management (TQM)?

An approach where every employee works towards improving the quality of products and processes.

What are two advantages of having motivated employees?

Increased productivity and improved employee retention rates.

How can businesses benefit from ethical behavior?

It can attract customers, improve public image, and increase employee satisfaction.

What is the role of ICT in business?

To facilitate efficient communication and operations, and manage relationships with stakeholders.

What is meant by e-commerce?

The buying and selling of goods and services using the internet.

What does the phrase 'buying in bulk' refer to?

Purchasing large quantities of goods to reduce the cost per unit.

What is just-in-time (JIT) production?

A stock management system where materials are ordered only when needed in the production process.

Explain the term 'market share'.

The percentage of total sales in a market that is controlled by a specific company.

What might influence a business's choice of supplier?

Cost, quality, speed of delivery, reliability, and reputation.

Define employee retention.

The ability of a business to keep its employees over a period of time.

What is the purpose of a job description?

To outline the duties and responsibilities of a particular job role.

What is a Deed of Partnership?

A legal document that outlines the terms agreed by partners in a business.

What are economies of scale?

The cost advantages that a business obtains due to the scale of operation, with cost per unit of output generally declining with increasing scale.

What is corporate social responsibility (CSR)?

The practice of companies taking responsibility for their impact on society and the environment.