1: Keywords

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

saturate (market)

to offer so much of a product for sale that there’s more than people want to buy

predator

business that tries to use another’s weakness to get advantage

hostile takeover

takeover that the company being taken over doesn’t want or agree to

bid

offer to a pay a particular price for something

commodities

products bought and sold

patents

legal documents allowing a company the right to make or sell new products that no other company is allowed to replicate

venture

new business activity

currency reserves

money in foreign currency held by a country and used to support its own currency and pay debts

human capital

people and their skills

enterprise

the activity of starting and running businesses

exploitation

situation in which you treat someone unfairly by asking them to do things for you but give very little in return

repatriation of profit

dwhere a MNC returns profit from an overseas venture to the country where it’s base

livelihood

way you earn money in order to live

surplus

amount of something that’s more than needed

exports

goods and services sold overseas

imports

goods and services bought from overseas