premises
buildings and land used by a shop or business
business
organisation that produces goods and services
organisation
group formed for a particular purpose
goods
physical products
services
non-physical products
output
amount of goods or work produced by a person, machine or factory
human resources
departments in businesses dealing with employing, training and helping people
consumer goods
goods and services sold to consumers rather than businesses
producer goods
goods and services produced by one business for another
needs
basic requirements for human survival
wants
people’s desires for goods and services
infinite
without limits in space or time
finite
having an end or limit
scarce
resources with limited availability
private sector
business organisations owned by individuals or groups of individuals
public sector
business organisations owned by central or local government
stakeholders
an individual or group with an interest in business operations
entreprenuer
person who takes risks and sets up a business
EBITDA
earnings before interest, tax, depreciation and amortisation
objectives
goals or targets set by a business
executives
managers in an organisation or company who help make important decisions
diversify
increasing the range of goods or services provided
financial return
monetary return
profit maximisation
making as much profit as possible in a given time period
shareholders
owners of limited companies
dividends
share of the profit paid to shareholders
profit satisficing
making enough profit to satisfy the needs of the business owners
automation
use of computers and machines to do a job
economies of scale
financial advantages of producing something in very large quantities
large business
employs more than 250 people
small business
employs less than 50 people
revenue
money from the sale of goods and services
innovator
someone who introduces change and new ideas
labour
people employed in a business/used in production
unincorporated
businesses that have a separate legal identity than that of its owners
sole trader
business owned by a single person
unlimited liability
owner of a business is personally liable for debts
partnership
business owned by between 2-20 people
deed of partnership
binding legal document that states the formal rights of partners
limited partnership
partnership where some partners contribute capital and enjoy a share of the profit but don’t run the business
limited liability
business owner is liable for the original amount of money invested in the business
audits
official examination of a company’s financial records in order to check that they’re correct
franchise
structure in which a business (franchisor) allows another operator (franchisee) to trade under their name
merchandise
goods being sold
social enterprise
business that aims to improve human or environmental wellbeing
cooperative
company, factory or organisation in which all of the people working there own an equal share of it
consumer cooperative
cooperatives owned by customers
retail cooperative
cooperative of retail members working together to assert purchasing power
worker cooperative
cooperative owned by employees
charities
organisations giving money, goods or help to the poor, sick and needy
venture capitalists
specialist investors who provide money for business purposes
limited companies
business organisations that have a separate legal identify from its owners
limited liability
shareholders are legally responsible for the debts of a company according to how many shares they own
chairperson
someone in charge of a meeting or directing the work of an organisation
certificate of incorporation
document needed before a new company can start business
private limited company (Ltd)
private company limited by shares
stock market
market for shares in PLCs
public limited company (PlC)
a limited company whose shares are freely sold and traded
prospectus
document produced by a company that wants the public to buy its shares
regulatory control
official power to control an activity to make sure it’s done in a satisfactory way
flotation
process of a company going public
multinational company
large business with significant production or service operations in at least 2 different companies
issue (shares)
sale of new shares
productivity
rate at which goods are produced
public corporations
business organisations owned and controlled by the state/government
portfolio
collection of business interests or products
infrastructure
basic systems and structures that a country or organisation needs in order to work properly
natural monopoly
market where it’s more efficient to have just one organisation meeting total market demand
subsidise
paying part of the costs
privatisation
transfer of public sector resources to the private sector
primary sector (industry)
production involving the extraction of raw materials from the earth
secondary sector (industry)
production involving the conversion of raw materials into finished and semi-finished goods
assembly plant
factory where parts are put together to make a finished product
tertiary sector (industry)
production of services in the economy
de-industrialisation
decline in manufacturing
brownfield sites
areas of land previously used for urban development
greenfield sites
previously undeveloped areas of land on the outskirts of towns
assisted areas
areas designated by a government as having economic problems and targeted to receive support
viability studies
careful study of how a planned activity will work and its costs and income
trade bloc
group of countries situated in the same region that join together and enjoy trade free of barriers
emerging economies
rapidly growing economies with huge growth potential but significant risks
globalisation
growing integration of the world’s economies
intellectual property
people’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
monetary system
system of money in a particular country
Studied by 10 People