1.3 Other roles of business (VOCABULARY flashcards)

A set of vocabulary flashcards covering key terms related to the roles of business, profit, employment, incomes, choice, entrepreneurship, risk, wealth, and quality of life as described in the notes.

Profit

The money that remains after all business expenses have been deducted from sales revenue; the return or reward to owners for producing the products that consumers want.

Revenue

The money a business receives as payment for its products (often referred to as sales revenue).

Operating expenses

All the costs of running the business except the cost of goods sold.

Loss

A negative profit; when a business's expenses exceed its sales revenue.

Wages

Money received by workers, usually on an hourly or daily basis, for services they provide to an employer.

Salary

A fixed regular payment, usually paid on a fortnightly or monthly basis (often expressed as an annual sum) to a permanent employee.

Bonus

A sum of money added to wages as a reward for good performance.

Overtime

Time worked outside regular working hours, usually paid at higher rates.

Commission

The percentage of a sales price received by a salesperson for their services.

Fringe benefits

Extra benefits supplementing an employee's wage or salary, such as a company car or private healthcare.

Dividend

A distribution of a company's profits to shareholders, typically calculated as cents per share and paid yearly or half-yearly.

Shareholders

People who are part owners of a company because they own shares.

Income

The amount of money received for providing labour or as a return on investments."

Quality of life

The standard of living improved by the wide range of products and services provided by businesses.

Wealth

Economic growth and wealth generated by business activity.

Employment

The provision of work; employment keeps the economy healthy and enables people to earn income to buy goods and services.

Small and Medium Enterprises (SMEs)

Small to medium-sized businesses; collectively account for about 68% of private sector employment and are major creators of new jobs.

Entrepreneurship

The act of turning ideas and passions into a livelihood by starting and running a business.

Risk

The possibility of loss or failure involved in starting and operating a business.

Innovation

The process of improving existing products and creating new ones through research and development.

Choice

The act of selecting among alternatives; consumers have freedom to shop around, and more competition increases the range of available products.