business studies unit 1 definitons

entrepreneur

an entrepreneur is someone who is willing to take the responsibility, risk and rewards of starting and operating a business.

sole trader

A business owned and operated by one person.

partnership

2 or more people who wish to carry on business together with the shared responsibilities, rewards and risks of starting a business.

company

A company is a business that is a separate legal entity from the people who have a financial interest in the business, known as shareholders.

company (public)

A company that has their shares publicly listed on the stock exchange so they are available to be bought by the general public and other companies.

company (private)

A company that has their shares owned by a single shareholder or within a private group, such as a family.

limited liability

Provides financial protection for the shareholders (owners) of a company. In the event of business failure the owners of the company only lose the money they contributed to the company in payment of the shares. Private asset cannot be touched.

unlimited liability

when the owners of the company are fully liable for any debts incurred by the business. private assets may be sold to cover these debts.

SMART

specific, measurable, attainable, relevant, time-based

mission/vision

A mission/vision statement shows what the business believes in and what it wants to achieve.

aims/goals

Long term goal, that describe what the business wants to be or do. (provides direction)

objectives

Business objectives are targets a business works towards. This should support the overall mission/vision of the business.

pūtake

origin or reason for being

quadruple bottom line

People, Planet, Profit, Purpose

Social, Environmental, Economic, Cultural

stakeholders

People or groups of people who can be affected by, and therefore have an interest in any action by an organisation.

internal stakeholders

Stakeholders found within the business - are the owners, employees, including managers.

external stakeholders

Stakeholders found outside the business - customers, shareholders, suppliers, government, local community, financial institutions, etc

Key Performance

Indicators

Measures a company’s success vs. a set of targets, objectives, or industry peers.

market share

The portion of a market controlled by a particular company or product.

barriers to communication

Barriers to communication are things that get in the way of a message being received eg language, emotions etc.

effective communication

The ability to convey information clearly and efficiently, ensuring that the intended message is understood by the audience.

one way communication

With one-way communication, the receiver of the message does not have a chance to respond

two way communication

With two-way communication both sender and receiver are involved in the communication process

internal communication

Occurs within the business between staff - Helps ensure staff are working together towards business goals

external communication

Occurs between the business and external stakeholders - Important to a firm’s reputation. Key to relationships with suppliers and customers

formal communication

Planned, uses official channels, Follows a chain of command, Reliable, documented, approved, Time Consuming.

informal communication

Unplanned, information moves freely through the organisation, Tends to be verbal, builds relationships, Rapid, but less reliable