BUSINESS MANGAEMNt

Goods: physical products produced and sold to customers, such as laptops, books, contact lenses, perfumes and children's toys.

Needs: the basic necessities that a person must have to survive, including food, water, warmth, shelter and clothing.

Primary sector: businesses involved in the cultivation or extraction of natural resources, such as farming, mining, quarrying, fishing, oil exploration and forestry.

Production: the process of creating goods and/or services, adding value in the process.

Quaternary sector: sub-category of the tertiary sector, where businesses are involved in intellectual and knowledge based activities that generate and share information, such as research organizations.

Secondary sector: businesses concerned with the construction and manufacturing of products.

Services: intangible products sold to customers, such as the services provided by airlines, restaurants, cinemas, banks, health and beauty spas, schools and hospitals.

Tertiary sector: businesses involved with the provision

Adding value: the practice of producing a good or service of services to customers. that is worth more than the cost of the resources used in the production process.

Wants: people's desires, i.e. the things they would like to have, such as new clothes, smartphones, overseas holidays

Businesses: organizations involved in the production of jewellery. goods and/or the provision of services.

Consumers: the people or organizations that actually use a product.

Customers: the people or organizations that buy the product.

Entrepreneurs: the people who manage organize and plan the resources needed for business activity in pursuit of organizational objectives. They are risk takers who exploit business opportunities in return for profits.

Entrepreneurship: the collective knowledge, skills and experiences of entrepreneurs.

Cooperatives: for-profit social enterprises set up, owned and run by their members, who might be employees and/or customers.

A company ( or corporation):a limited liability business that is owned by shareholders. A certificate of incorporation gives the company a separate legal identity from its owners (shareholders).

Deed of partnership: the legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their proportion of any profits or losses.

Incorporation: a legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability.

An initial public offering (IPO): when a business sells all or part of its business to shareholders on a public stock exchange for the first time. This changes the legal status of the business to a publicly held company.

Limited liability: a restriction on the amount of money that owners of a company can lose if the business goes bankrupt, i.e. shareholders cannot lose more than the amount they invested in the company.

Non-governmental organizations (NGOs): private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to earn a profit, such as Oxfam and Friends of the Earth.

Partnerships: a type of private sector business entity owned by 2-20 people (known as partners). They share the responsibilities and burdens of running and owning the business.

The private sector: the part of the economy run by private individuals and businesses, rather than by the government, such as sole traders, partnerships, privately held companies and publicly held companies.

A privately held company: a business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public on a Stock Exchange.

A publicly held company: an incorporated limited liability business that allows shareholders to buy and sell shares in the company via a public Stock Exchange.

The public sector: the part of the economy controlled by the government. Examples include state healthcare and education services, the emergency services, social housing and national defence.

A sole trader: a self-employed person who runs the business on his/her own. This mean s/he has exclusive responsibility for its success (profits) or failure (unlimited liability).

Social enterprises: revenue-generating businesses with social objectives at the core of their operations. They can be for profit or non-profit business entities, but all profits or surpluses must be reinvested for that social purpose rather than being distributed to shareholders and owners.

A stock exchange: a marketplace for trading stocks and shares of publicly held companies (or public limited companies). Examples include the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE).

Unlimited liability: a feature of sole traders and ordinary partnerships who are legally liable or responsible for all monies owed to their creditors, even if this means that they have to sell their personal possessions to pay for their debts.

Business plan: the document that sets out a business idea or proposition, including the objectives, resources (marketing, operations, personnel and finance) and corporate strategies.

Executive summary: a synopsis or abstract of the information provided in the main section of a business plan, highlighting the key points and conclusions.