Industrial Sectors and Commerce Practice Flashcards

This set of vocabulary flashcards covers the fundamental concepts of industrial sectors, commercial branches, business ownership types, and marketing strategies as presented in the lecture notes.

Primary Sector

The sector of production that extracts raw materials from nature, such as farming, fishing, and mining.

Secondary Sector

The sector that converts raw materials into finished goods, including construction, manufacturing, and factories.

Tertiary Sector

The sector that provides services to businesses and consumers, such as transport, banking, retail, and education.

Value added

The increase in value that occurs when raw materials are turned into finished goods.

Economic structure

The percentage share of each sector in a country’s output or employment.

Industrialisation

The growth of the secondary sector within an economy.

De-industrialisation

A shift in the economy from manufacturing (secondary) to services (tertiary), often caused by automation or cheaper overseas production.

Commerce

All activities that help move goods and services from producers to consumers, bridging the gap between production and consumption.

Trade

The branch of commerce involving the buying and selling of goods, categorized into retail and wholesale.

Aids to Trade

Services that support trade, including banking, insurance, transport, warehousing, advertising, and communication.

Division of Labour

When production is split into separate tasks and each worker specialises in one task to increase efficiency and productivity.

Wholesale

The activity of selling goods to retailers in bulk.

Retail

The activity of selling goods directly to the final consumers.

Cash buying

The process of paying immediately when purchasing goods or services.

Credit buying

Purchasing goods now and paying for them later, often involves interest, trade credit, or hire purchase.

Bulk buying

Purchasing large quantities at once, such as supermarkets buying from wholesalers.

Speculative buying

Buying goods in anticipation of price rises, such as importers buying before demand increases.

Overheads

Indirect business costs such as rent and administration.

Profit margin

The difference between the cost price and the selling price of a product.

Turnover

The total sales revenue of a business.

Trade discount

A price reduction offered for bulk buying, such as a $10\%$ discount on large orders.

Cash discount

A discount offered to encourage quick payment, for example, $2\%$ off if paid in $7$ days.

Sole Trader

A business owned and managed by one person who keeps all profits but has unlimited liability.

Unlimited Liability

A legal condition where the owner's personal assets are at risk if the business cannot pay its debts.

Partnership

A business owned by $2$ to $20$ people who share responsibility and profits, typically governed by a partnership agreement.

Cooperative

A business owned and run by members for mutual benefit, featuring democratic control where one member equals one vote.

Limited Company

A separate legal entity from its owners (shareholders) where owners have limited liability and only lose what they invest.

Private Limited Company (Ltd)

A company where shares are sold privately to family or friends, with a limit of $2$ to $50$ shareholders.

Public Limited Company (Plc)

A company with a minimum of $2$ shareholders whose shares are traded on the stock exchange.

Dividend

The portion of a company's profit paid out to its shareholders.

Franchise

An agreement where a franchisor allows a franchisee to use its name, brand, and business model in exchange for royalties and fees.

Public Corporations

Government-owned enterprises that provide essential services like electricity or railways with the aim of public service rather than profit.

Privatisation

The process of selling government-owned businesses to the private sector to increase efficiency.

Multiple shops (chains)

Retail stores with the same name and layout, such as Cargills Food City.

Breaking bulk

The function of wholesalers or retailers dividing large quantities of goods into smaller units for sale.

E-commerce

The buying and selling of goods or services over the internet, available $24/7$ with global reach.

Internal Communication

The transfer of information within the same organisation, such as memos or staff emails.

External Communication

Communication between different organisations or between a business and its customers, such as invoices or advertisements.

Informative Advertising

Advertising that provides facts and data to customers about products or services.

Persuasive Advertising

Advertising designed to convince people to buy a product by emphasizing its benefits.

Competitive Advertising

Advertising used to fight rival brands, such as campaigns between Coca-Cola and Pepsi.

Above-the-line Advertising

Paid media approaches to promotion, including TV, radio, and internet advertisements.

Below-the-line Advertising

Direct and personal forms of promotion such as emails, coupons, and events.

Target market

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