CIE IGCSE Y11 Enterprise

ali enterprise flashcards

Land

Natural resources that are used by an enterprise

Labour

Skilled and unskilled workers who can work for an enterprise

Capital

Human-made aids to production

Risk

The possibility that events in relation to an enterprise do not turn out as expected

Enterprise

A business organised and run by an entrepreneur who makes decisions and takes risks

Enterprising

The showing of initiative, imagination, energy, and resourcefulness

Business Enterprise

A type pf enterprise that usually has profit as its main objective

Creative

The introduction of something original and imaginative rather than imitated

Innovative

The introduction of something new

Positive Attitude

The tendency to be optimistic

Sole Trader

business owned and operated by one person

Partnership

a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

Unlimited Liability

The need for sole traders and partners (except limited partners) to pay the debts of an enterprise out of their personal funds

Limited Company

A company that is legally independent from it's shareholders, who as a result have limited liability

Limited Liability

Legal protection that allows shareholders to be liable for company debts only up to the value of their shareholding

Franchise

An arrangement whereby one company gives the right to another company to supply its products

Franchisee

The company allowed by another company to conduct business using the other company's name and brand

Franchisor

The company that allows another company to conduct business using its name and brand

Co-operative

A type of business organisation owned by it's customers or its employees

Social Enterprise

A type of organisation that does not have profit as its main objective

Stakeholders

Various groups with strong interest in a particular enterprise including customers, employees, suppliers and the community

Customer

A person or organisation that buys goods and/or services from an enterprise

Supplier

Business that provides resources to enterprises which allow them to produce goods and services

Profit Maximization

The goal of many enterprises to make the gap between total revenue and total cost as wide as possible

Satisficing

Where an enterprise aims for an adequate level of profit, rather than profit maximization

Sales Revenue Maximization

Where an enterprise aims to maximize the revenue received from sales rather than its profit

Social Responsibility

The idea that an enterprise has a responsibility to a wider society and environment

Leadership Style

The distinctive way in which decisions are taken in an enterprise

Team Building

The process of improving the effectiveness and motivation of people working together in a team

Perseverance

The determination and persistence to achieve something despite experiencing difficulties

Delegation

Where responsibility is passed down to others in an enterprise

Action Plan

A plan that outlines the actions required to achieve particular aims and objectives and which provides a way of monitoring progress

Market Orientation

Taking decisions on the basis of consumer demand

Market Research

The collection and analysis of information that relates to the consumption of products or services

Primary Research

The collection of information that does not already exist

Qualitative Research

The gaining of information in the form of subjective data (opinions and attitudes)

Quantitative Research

The gaining of information in the form of objective data (statistics)

Secondary Research

The collection of information that already exists, gained from different forms of desk research

Globalization

The trend towards worldwide markets in products and services

Consumer Sovereignty

The importance of changes in consumer preferences in determining the allocation of scarce resources

Real Income

The increase in income after subtracting the rate of inflation

Risk Optimizer

A person willing to accept a certain amount of risk in the interest of making significant profits

Risk Reducer

A person who wishes to reduce the amount of risk faced by an enterprise to reduce the likelihood of failure

Risk Avoider

A person who wishes to avoid any possibility of risk in order to ensure the continued existence of an enterprise

PESTEL Analysis

The analysis of the wider macro-environment of an enterprise, including political, economical, social, technological, environmental and legal factors.

Technology

The use of tools, machines and science in the production of goods

Corporate Social Responsibility

The willingness of an enterprise to accept responsibility for its actions and how they may have an impact on a variety of stakeholders

Pressure Group

An organization that aims to influence governments and enterprises to adopt the policies and actions it favors

Ethical Principle

A way of doing something according to a set of moral principles

Social Impact of Enterprise

When the impact is positive, acting in a socially responsible way that demonstrates concern for all members of society

Negotiation

An interaction of influences that aims to reach an outcome that will satisfy the interests of those involved

Negotiating Style

A particular approach to the process of negotiation

SMART Objectives

Objectives or targets that are specific, measurable, achievable, realistic, and time based

Investment

The process of purchasing capital assets

Human Capital

The knowledge, skills and qualifications training and experience of a workforce

Share

A contribution to the finance needed by an enterprise organised as a limited company, a share certificate is issued to the shareholder

Unit Trust

A collective fund that allows investors to put their money into a variety of different companies and enterprises

Diversification

An investment strategy that aims to reduce risk by combining a variety of different investments that are unlikely all to suffer losses at the same time

Saving

Keeping income instead of spending it

Government Bond

A bond issued based on a promise to repay a certain sum of money at a date sometime in the future. Usually issued by the central bank of a country on behalf of the government, the government guarantees to repay the money on the maturity of the bond, plus interest

Interest

The return on money that has been lent

Savings Goal

The objective of saving in terms of both the amount that needs to be saved, that the purpose to which the money is intended to be put

Commercial Bank

A commercial institution, usually owned by its shareholders, that receives deposits and provides loans and other forms of financial support

Building Society

A financial institution that receives deposits and provides loans and other forms of financial support, usually owned by its members so it is a mutual organisation

Credit Union

A financial institution that receives deposits and provides loans and other forms of financial support, usually owned by its members by limited to a particular area of a country or a particular group of people

Friendly Society

A financial institution that receives deposits and provides loans and other forms of financial support, often specializing in providing savings accounts and life insurance plans

Grant

A payment that is usually given to support a particular project

Loan

Money lent by a financial institution to a borrower

Mortgage

A form of loan that is usually secured against a property

Overdraft

When an account is allowed to go into debit

Subsidy

A payment usually given to keep the selling price lower than would otherwise be the case

Venture Capital Trust

A collective investment scheme designed to provide private equity capital for relatively small expanding enterprises

Credit

A sum of money that an enterprise allows customers before requiring payment

Creditor

A person to whom money is owed

Debt

A sum of money that is owed by a person or organization

Debtor

A person or organization that owes money

Trade Credit

The credit extended by the seller to the purchaser of goods and services

Budget

A financial statement of income and expenditure prior to a particular period of time

Direct or variable cost

Costs that vary directly with changes in level of output

Expenditure

all outgoings over a specific period of time

Income

all incomings received from different sources over a specific period of time

Indirect or fixed costs

Costs of an enterprise that do not vary directly with changes in level of output

Overheads

The operating costs of an enterprise that are not directly related to the level of output

Profit

The financial gain an enterprise makes when it's sales revenue is higher than it's total costs (TR - TC)

Revenue

income received from sales of products over a specific period of time (SP x Q)

Surplus

the amount by which an enterprise or an individuals income exceeds expenditure or spending over a particular period of time

Deficit

the amount by which an enterprise or individuals spending or expenditure is more than the income over a period of time

Loss

When an enterprises sales revenue is lower than the total costs incurred in producing it's goods or services

Budget Variance

the difference between the budgeted amount and the actual amount that you spend

Cash flow

The flow of money into and out of the enterprise

Cash flow budget

an income overview of expected income and expenditure over a particular period of time

Liquidity

the ease with which the assets of an enterprise can be turned into cash

Solvency

The degree to which the current assets of an enterprise are greater than its current liabilities

Profit and Loss Account

A statement that shows the net profit of an enterprise after all of the expenses have been deducted

Gross Profit

the sales revenue of an enterprise less the cost of sales

Net Profit

the gross profit of an enterprise less all over expenses

Growth

The increase in size of an enterprise through internal and external expansion

Business Plan

A document that summarizes the main objectives of an enterprise and how these objectives are to be achieved

Copyright

The legal ownership by a person or an enterprise of certain kinds of material e.g. musical or artistic work

Patent

A grant of ownership rights to a person or an enterprise in relation to the invention of a new product or manufacturing process