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A general goal of a business
business plan
a document setting out a business's future objectives and strategies for achieving them.
business planning
The process of producing a business plan.
company
A business that has its own legal identity. It can own items, owe money, sue and be sued.
Consumers
A person who uses goods and services produced by a business
customer
someone who buys goods or services
Deed of partnership
An agreement between partner that sets out the rules of the partnership
diseconomies of scale
Occurs when the cost per unit increases as a business expands
Dividends
Financial rewards paid out to shareholders each year
e-commerce
the buying or selling of goods and services electronically, usually over the internet
Economies of scale
When a business unit costs of production fall as its output rises and the business expands
Enterprise
Another word for a business. It also refers to the skills of the people involved in the business to identify business opportunities and bring together resources to meet these opportunities
Entrepreneur
Someone willing to take the risks involved in starting a new business
Entrepreneurship
The ability to be an entrepreneur - to take risks and develop a business idea
External growth (Intergration)
Occurs when a business gets bigger by joining or buying other businesses
Fixed cost
Those costs that do not change when a business changes it's output
flotation
Occurs when a private limited company (Ltd) becomes a public limited company (Plc) and has its shares listed on the stock exchange.
Franchise
When a franchisee sells the rights to its products to a franchisee
Franchisee
Buys a franchise usually in return for a fee
Franchiser
Sells a franchise usually in return for a fee
Good
A tangible product
Gross Domestic Product (GDP)
Measures all the income earned in a country's economy in a year
Imports
goods and services purchased from other countries
Inflation
The rate at which prices are increasing
Interest
The money paid by banks as a reward to attract people to save with them
Interest rates
The cost of borrowing money or the reward for saving money
Internal growth (Organic growth)
Occurs when a business grows by selling more of its product
Market Capitalisation
The market capitalisation of a company measures the value of all its shares
Market Capitalisation (formula )
Market price of a share x the number of shares
Market share (equation)
(Sales of a product or business / total market share) x 100
Merger
occurs when two or more organizations combine to become one
Negotiation
When two side discuss what they want to try and reach a solution
non-for-profit organization
Set up to achieve objectives other than profit
Objective
A specific target that is set for a business to achieve
Outsourcing
When a business uses another business to produces for it
Partnership
Occurs when two or more people join together in a business enterprise to pursue profit
Private sector organisations
owned by individuals
Profits
difference between a business's revenues and its expenses
Protectionist measures
Policies that governments use to protect their own businesses against foreign competition.
Public sector organisations
Businesses owned by the government.
Quota
A limit on the number of foreign goods imported into a country
Resources
The inputs that businesses use to provide thier goods or services
Revenue
The income a firm receives from selling its goods or services
Revenue (formula)
number of units sold x unit price
risk
The possibility of something going wrong
Sales per employee (formula)
Sales / number of employees
service
an intangible product
Social enterprise
A business that is set up to help society rather than make a profit
Sole trader
Someone who sets up in business on his or her own
Stakeholder
Individual or groups that are affected by and affect the activities of a business
Stock Exchnage
A market for buying and selling shares of public limited companies.
takeover
an act of taking control of a company by buying most of its shares
Tariff
Tax on foreign goods imported into a country
Total cost
fixed costs plus variable costs
Uncertainty
Occurs where there is a lock of information about a situation
Unlimited liability
The owner is personally and fully responsible for all losses and debts of the business and will pay with personal property if the business is at risk
Variable costs
The costs that vary directly with the business's level of output
What is a shareholder
A person that owns part of a company.
Note
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