IB BM Unit 1

Private Sector

organized and owned by private individuals and businesses that aim to earn profit

Public Sector

organizations owned and controlled by the government that provide essential goods and services

Sole Trader

a person who owns, runs, and controls their own business

Partnership

a for-profit business owned by two or more people

Deed of Partnership

a legal contract specifying partners' financial contributions, roles, and responsibilities

Silent Partner

an investor who provides capital and receives profits but does not actively manage the business

Company

a separate legal entity owned by shareholders

Privately Held Company

a company whose shares are sold privately and cannot be traded by the general public

Publicly Held Company (PLC)

a company whose shares are sold to the public through a stock exchange

Memorandum of Association

a legal document required to establish a company

Articles of Association

a legal document outlining how a company will be governed

Social Enterprise

a revenue-generating business with social objectives at its core

Triple Bottom Line

measuring business success through economic, social, and environmental performance

Cooperative

a business owned and run by its members, who each have voting rights

Consumer Cooperative

a cooperative owned by customers to obtain lower prices

Worker Cooperative

a cooperative owned by employees to provide work opportunities

Producer Cooperative

a cooperative where producers work together to process or market products

NGO (Non-Governmental Organization)

a private organization independent of government

Operational NGO

an NGO focused on relief work and community projects

Advocacy NGO

an NGO that promotes a cause through campaigning and direct action

Vision Statement

a statement outlining an organization's long-term aspirations

Mission Statement

a statement describing an organization's purpose and core values

Growth

an increase in the scale of business operations and sales revenue over time

Profit

the financial gain earned after deducting costs from revenue

Dividend

the portion of company profits distributed to shareholders

Protecting Shareholder Value

creating sustainable long-term value for business owners

Ethical Objectives

business goals based on society's principles of right and wrong

Business Ethics

morally acceptable actions taken by an organization

Ethical Code of Practice

a documented set of beliefs and guidelines for acceptable workplace behavior

CSR (Corporate Social Responsibility)

a business's commitment to ethical and environmentally responsible practices

Strategic Objectives

medium- to long-term goals for the entire organization

Market Standing

the extent of a business's presence or dominance in an industry

Image and Reputation

how positively a business is perceived by customers and other stakeholders

Market Share

a firm's sales as a percentage of total industry sales

Tactical Objectives

short-term goals for specific departments or areas of a business

Survival

maintaining business operations, especially during difficult conditions

Sales Revenue Maximization

increasing total sales revenue, often a priority for new businesses

Corporate Culture

the shared values, beliefs, and behaviors within an organization

Stakeholder

any individual, group, or organization with an interest in a business and its performance

Employee

a stakeholder who works for the business and seeks fair pay, good conditions, and job security

Manager

a person responsible for overseeing the daily operations of a business

Director

a senior executive elected by shareholders to manage the company

Shareholder

an individual or organization that owns shares in a company

Capital Gain

an increase in the value of an investment, such as shares

Customer

a stakeholder who purchases goods or services from a business

Supplier

a business or individual providing raw materials or components

Financier

an individual or institution providing financial resources to a business

Pressure Group

a group seeking to influence business behavior in support of a common cause

Competitor

a rival business operating in the same market

Local Community

people living near a business who are affected by its activities