Business Activity Flashcards

Flashcards based on Business Activity lecture notes.

Business

An organisation that provides goods and services.

Goods

Physical products that you can hold.

Services

Non-physical products that are provided to you.

Consumer Goods

Goods produced for the consumer.

Producer Goods

Goods produced for other businesses.

Needs

Basic requirements for human survival.

Wants

People’s desires for goods and services.

Private Enterprise

Private sector businesses that exist to make money.

Social Enterprise

Private sector, non-profit making businesses that raise money for good causes or provide opportunities for people with common interests.

Public Enterprise

Public sector providing health care, education, policing, fire services – provide what private enterprise fail to provide adequately.

Stakeholder

An individual or group with an interest in the operation of a business

Entrepreneur

A person who sets up a business or businesses, taking on financial risks in the hope of profit.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Market

A place where buyers and sellers can interact to exchange goods or services.

Market Research

The process of gathering, analyzing, and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present, and potential customers for the product or service.

Business Plan

A formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.

Revenue

The total income received from sales of goods or services.

Costs

Expenses incurred in the production of goods or services.

Profit

The financial gain realized when revenue exceeds costs.

Loss

The financial deficit realized when costs exceed revenue.

Cash Flow

The total amount of money being transferred into and out of a business.

Fixed Costs

Costs that do not change with respect to output.

Variable Costs

Costs that do change with respect to output.

Total Costs

Sum of fixed and variable costs.

Average Costs

Total costs divided by quantity produced.

Total Revenue

Price times quantity sold.

Market Share

Percentage of total sales a company has in a given market.

Market Segmentation

Dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.

Target Market

A specific group of consumers at which a company aims its products and services.

Supply Chain

The sequence of processes involved in the production and distribution of a commodity.

Economies of Scale

Cost advantages that enterprises obtain due to size, output, or scale of operation.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Brand

A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Marketing Mix (4Ps)

A combination of product, price, place, and promotion used to influence consumers to purchase a product.

Product Life Cycle

The stages a product goes through from when it was first thought of until it finally is removed from the market. The stages are: introduction, growth, maturity, and decline.

Inventory

A complete list of items such as property, goods in stock, or the contents of a building.

Just-in-Time (JIT)

A management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies employ this strategy to increase efficiency and decrease waste by receiving goods only when they are needed for the production process, which reduces inventory costs.

Lean Production

A production philosophy that focuses on minimizing waste in all the phases of manufacturing, including design, production, distribution, and customer service.

Quality Control

A process by which entities review the quality of all factors involved in production. ISO 9000 is an example.

Customer Relationship Management (CRM)

Technology for managing all your company’s relationships and interactions with customers and potential customers.

E-commerce

Commercial transactions conducted electronically on the Internet.

Business

An organisation that provides goods and services.

Goods

Physical products that you can hold.

Services

Non-physical products that are provided to you.

Consumer Goods

Goods produced for the consumer.

Producer Goods

Goods produced for other businesses.

Needs

Basic requirements for human survival.

Wants

People’s desires for goods and services.

Private Enterprise

Private sector businesses that exist to make money.

Social Enterprise

Private sector, non-profit making businesses that raise money for good causes or provide opportunities for people with common interests.

Public Enterprise

Public sector providing health care, education, policing, fire services – provide what private enterprise fail to provide adequately.