as business unit 1 key words

business ethics

doing the right thing. basing business decisions on what is morally right

business objectives

aims or targets a business sets out to achieve

business plan

a document setting out a business’s objectives and how it will achieve them

co-operative

business or other organisation which is owned and run jointly by its members, who share the profits or benefits

corporate social responsibility

business who take responsibility for the social and economic impact of their activity

entreprenuer

someone who invests capital, takes risks and starts up and operates a new business venture

external growth

business expansion, taking over or merging with another business

external stakeholders

person or group outside of the business impacted by the business activity

franchise

buying the license to use another companies logo and sell their products

incorporated business

business is a separate legal entity - separation between owner and the company

internal growth

business expansion without takeover or merging with another business

internal stakeholders

individual or group inside the business impacted by the business activity (owners, shareholders, managers, employees

joint venture

2 companies share capital and expertise on a project. share risks and profits

limited liability

owner’s responsibility for the company’s debts is restricted to what they have invested

Mission Statement

A mission statement is a visionary aim for a business of the direction/purpose

Needs

goods or services we need to survive

opportunity cost

the potential benefits a business misses out on when choosing one alternative over another.

partnership

Two or more people join to set up a business. Shared decision making, capital invested and risk.

primary sector

Using natural resources to make raw materials for business

private limited company

Incorporated business with shares sold to friends and family. Limited liability.

private sector

Part of the economy owned and controlled by private individuals

public sector

Part of the economy owned and controlled by the government

public limited company

Incorporated business with shares sold to general public. Limited liability.

purpose of business activity

business satisfies peoples (consumers) wants

quaternary sector

Sector of the economy is based upon the economic activity that is associated with either the intellectual or knowledge-based economy.

scarcity

Not enough resources/goods or services to provide for peoples' (consumers) unlimited wants

secondary sector

Manufacturing goods from raw materials

social enterprise

private enterprise which uses profits to pursue environmental or social objectives

sole trader

A business owned by one person who is responsible for all decisions, capital invested and risk.

specialization

People in business focus on what they do best

tertiary sector

Services to consumers and other businesses (B2B)

triple bottom line

Business objectives are not just based on profit, but also on social and environmental objectives

unincorporated business

No separation between the company and the owners in law

unlimited liability

Owners personal assets may be taken to pay for debts of the company.

value added

Selling price (minus) cost of bought in materials

wants

Good or service people want but isn't essential for survival

intraprenuer

an employee who is tasked with developing an innovative idea or project within a company

multinational business

is a company that has business operations in at least one country other than its home country

added value (adding value)

the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.

factors of production

Factors of production are the inputs needed for creating a good or service. land, labour, capital, entrepreneurship

business risk

the exposure a company or organisation has to factor(s) that will lower its profits or lead it to fail.

merger

an agreement that unites two existing companies into one new company

takeover

when a company buys more than 50% of the shares of another company and becomes the controlling owner of it

horizontal integration

integration with firms in the same industry and at \n same stage of production

smart objectives

(Specific, Measurable, Achievable, Realistic and Relevant, Time-Specific) to guide in the setting of goals and objectives for better results

friendly merger

The acquisition of one company by another with the full knowledge and consent of the target company's board of directors.

hostile takeover

The acquiring company tries to take over a target company against the wishes of the target company's management.