AICE Business Ch. 1 & 2 Vocab

factors of production

Resources needed by businesses to produce goods or services.

capital goods

Physical items like machines or commercial vehicles used to make other products.

enterprise

Taking the risk and initiative to start a business.

opportunity cost

The next most desired option that is given up.

multinational business

A company based in one country with operations in other countries.

intrapreneur

An employee who acts like an entrepreneur inside an existing company.

IPO (initial public offering)

An offer to the public to buy shares in a public limited company.

private limited company

A business owned by private shareholders (often family) that cannot sell shares to the general public.

PLC (public limited company)

A company whose shares are traded on a stock exchange and can be bought and sold by the public.

primary sector

Firms that extract natural resources (e.g., farming, fishing, oil).

secondary sector

Firms that manufacture and process goods from natural resources (e.g., construction, brewing, baking).

tertiary sector

Firms that provide services to consumers and other businesses (e.g., banking, retail, tourism).

quaternary sector

Businesses providing services (e.g., IT, web design, R&D).

public corporation

A business enterprise owned and controlled by the state.

public sector

Government-controlled organizations funded by the state.

private sector

Businesses owned and run by private individuals or groups.

sole trader

A business owned and run by one person who keeps all profits and takes all risk.

partnership

A business owned by two or more people who share investment, responsibilities, and profits.

shareholder

A person or institution owning shares in a limited company.

limited liability

A rule where shareholders can only lose the money they invested, not their personal wealth.