AQA GCSE Business

sources of new ideas for a business

Market research and competitor analysis.

entrepreneur

An individual who identifies a business opportunity, takes the risk to start and manage a business, and innovates to make profits.

opportunity cost

The value of the next best alternative that is foregone when a decision is made.

primary sector

Involves businesses that extract and harvest natural resources, such as mining, agriculture, and fishing.

characteristics of an entrepreneur

Risk-taking and innovation.

sole trader advantages

Full control over decision-making and keeping all the profits.

limited liability

Owners (shareholders) are only liable for the amount of money they have invested, protecting personal assets.

private vs public limited company

A private limited company cannot sell shares to the public; a public limited company can.

shareholder

An individual or entity that owns shares in a company and has a claim on its profits.

objective

A specific, measurable goal that a business sets to achieve within a certain time frame.

market share

The percentage of total sales in a market that is controlled by a particular business.

stakeholder

Any individual or group that has an interest or investment in a business that can affect or be affected by its activities.

ethical decisions

Decisions made based on moral principles that may lead to increased costs and possibly lower short-term profits.

sustainable production

Creating goods in a way that meets present needs without compromising the ability of future generations to meet their own needs.

economic climate

The overall state of the economy, affecting factors like inflation and employment.

globalisation

The process of businesses and organizations operating internationally, leading to increased interconnectedness.

inward investment

Foreign companies or individuals investing in a country's businesses or assets.

consumer spending

The total amount of money spent by individuals and households on goods and services.

diseconomies of scale

Management problems and increased communication issues that arise when a business becomes too large.

difference between merger and takeover

A merger is two companies combining; a takeover is one company buying another.