Business Activity and Influences on Business

This array of flashcards covers key concepts related to business activity, stakeholder roles, characteristics of different types of businesses, aspects of globalization, and economic principles affecting business operations.

Business Activity

The actions and processes involved in producing goods and services in an organization.

Stakeholder

An individual or group that has an interest in the operation of a business.

Consumer Goods

Goods and services sold to ordinary consumers rather than businesses.

Producer Goods

Goods produced by one business for another, such as raw materials.

Exchange Rate

The value of one currency in terms of another currency.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)

A measure of a company's overall financial performance.

Limited Liability

The legal status of a company that protects its owners from being personally responsible for its debts.

Public Corporation

A business organization owned and controlled by the state or government.

Private Limited Company (Ltd)

A company that is privately owned and restricts the ownership of shares.

Globalization

The increasing integration of economies and cultures around the world.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient.

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary works, and designs.

Fiscal Policy

Government adjustments to spending levels and tax rates to influence a nation's economy.

Trade Barrier

Any regulation or policy that restricts international trade.

Monopoly

The exclusive possession or control of the supply of or trade in a commodity or service.

Tertiary Sector

The sector of the economy that provides services to consumers and businesses.

Secondary Sector

The sector of the economy that manufactures and processes raw materials into goods.

Primary Sector

The sector of the economy that extracts raw materials from the earth.

Deregulation

The reduction or elimination of government rules controlling how businesses can operate.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Multinational Corporation (MNC)

A corporation that operates in multiple countries.

Consumer Protection

Laws and regulations that ensure the rights of consumers are upheld.

Interest Rates

The cost of borrowing money or the return on savings.

Export

Goods and services sold from one country to another.

Import

Goods and services brought into a country from abroad.

Market Share

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

Profit Maximization

The process by which a company determines the price and output level that returns the greatest profit.

Social Enterprise

A business model that aims to achieve social or environmental objectives.

Human Resources

The department within a business that manages employee relations and personnel.

Corporate Social Responsibility (CSR)

The concept that a business should be accountable for its impact on society.

Competitive Advantage

The attributes that allow an organization to outperform its competitors.

Value Chain

A set of activities that a company performs to deliver a valuable product or service to the market.