Business Terminology (need to see if they correct)

Intangible – Unlike goods, services are not physical in their nature.
Inseparable – The service received is attached to the people who deliver the service and the processes used to deliver the service.
Perishable – Services do not last but are usually consumed at the time of purchase.
Variable – services are heterogeneous, i.e., each customer experience is unique.
Needs - Basic Necessities
Wants - People’s desires
Business - An organisation that produces goods and services.
Goods - Physical products eg. clothes, food.
Consumer Goods - products sold to the general public, rather than to other businesses
Consumer Durables - products that last a long time and can be used repeatedly

(Consumer) Non-Durables - those that need to be consumed shortly after purchase

Capital Goods (or Producer Goods) - physical products bought by businesses to produce other goods and/or services

Services - Intangible products eg. banking, healthcare.
Entrepreneur- the individual who plans, organizes and manages a business and its operations, taking on financial risks in doing so.
Customers - the people or organizations that purchase a product
Consumers - the ones who actually use the product.
Adding value - cost of producing good or service > cost of resources used to produce it
Profits: Earnings - Costs, if positive then profits, if negative then loss
Land - Natural resources used for goods and services eg. water, sand, plants.
Labour - The human effort used for goods and services, also referred to as human resources.
Capital - Non-natural resources used for goods and services eg. machinery, motor vehicles.
Entrepreneurship - Individuals who have the skills, knowledge and ability to produce goods and services to earn profit.
Human resources - Workforce functions that are related to staff eg. employment/recruitment, training.
Finance and accounts - Confirming that there are sufficient funds to run the business, and managing the organisation’s money.
Marketing - Researching the needs and wants of the customers in a profitable way eg. promoting, distributing products efficiently.
Operations management - Also known as production. This includes all the operations that relate to the production of goods and services to meet the needs and wants of the customers.
Primary sector - Natural resources eg. mining, farming, fishing. (aka extractive production)

↪output predominantly (GDP) in this sector are LEDC (less economically developed countries

Secondary sector - Manufacturing or construction of finished goods (ready for sale) eg. Bread, cake, cheese, sugar factories.

↪output predominantly (GDP) in this sector are economically developing countries (middle-income economies)

Tertiary - Services to customers eg. grocery store, bakery, banks, hospitality.

↪output predominantly (GDP) in this sector are economically developed countries (high-income economies)

Quaternary - Creation and distribution of knowledge eg. information technology, computing, biotechnology.

↪output predominantly (GDP) in this sector are economically developed countries (high-income economies)

Entrepreneurship - the traits of individuals who run their own business(es).
Entrepreneur - someone who is both willing and able to take calculated risks by investing in a business start-up or commercial initiative.
Visionary - an entrepreneur who has the foresight and driving force behind an organization’s growth and development
↪can see market changes and trends → CEO (chief executive officer)
private sector: the economy consists of businesses owned and run by private individuals and organizations that usually aim to earn a profit for their owners
The public sector: consists of those organizations controlled by a regional and/or national government, with the main aim being to provide essential goods and services for the general public.
Companies (also known as corporation) are commercial for-profit businesses owned by shareholders.
A Deed of Partnership (or partnership deed) is a formal partnership agreement or contract between the owners, which includes legal agreements such as the formal responsibilities of each owner, their voting rights, and how profits are to be shared between the partners.
An initial public offering (IPO) occurs when a company sells its shares on a public stock exchange for the first time.
An ordinary partnership has a minimum of 2 partners and up to 20 owners (although this does vary from one country to another).
Partners are the co-owners of a partnership business.
A partnership is a commercial (for-profit) business that strives to earn a profit for its owners.
Privately held companies are limited liability companies owned by shareholders but the shares in the business cannot be advertised or traded on a stock exchange.
Publicly held companies (or joint-stock companies) are limited liability companies owned by shareholders with the shares in the business being traded (bought and/or sold) on a public stock exchange (or stock market).
Shareholders are the owners of a limited liability company.
Silent partners (also known as sleeping partners) are inactive owners of a partnership business, who provide additional capital without having any role in the actual running of the organization.
A sole trader (or sole proprietor) is the single owner of a business organization, so makes all the decisions and takes all the risks in running the enterprise.
A stock exchange (or stock market) is a marketplace where shares in publicly held companies can be bought and/or sold, such as the New York Stock Exchange (NYSE).
Unlimited liability means that if the sole proprietorship fails, the sole trader is personally held responsible for all the debts of the business. As there is no limit to the amount of losses, this means that the sole trader could lose their personal possessions to pay for the organization's debts.
For-profit social enterprises: Revenue-generating businesses with social objectives at the core of their operations.
↪Also known as social purpose organisations (SPOs)
Microfinance: offer financial service to those without a job or on very low incomes. These members of society would not ordinarily be able to secure bank loans.
Public Sector Companies: Government-owned enterprises that run in a commercial-like way (selling goods and/or services in order to generate a financial surplus). They can be owned wholly or partially by the government.
Public Private Partnerships: Jointly established enterprise by a government and one or more private sector businesses.
Cooperatives: For-profit enterprises owned and run by their members, such as employees or customers, with the common goal of creating value for their members by operating in a socially responsible way.
A non-governmental organization (NGO) is a type of non-profit social enterprise that operates in the private sector as a voluntary group to promote a social cause.
Non-profit social enterprises operate in a commercial-like way but they do not distribute any profits or financial surplus to their owners or shareholders.
A non-profit organization (NPO) is a legal entity organized and operated for a collective or social benefit rather than an entity that operates as a business that primarily aims to generate a profit for its owners or shareholders.
Social enterprises are business entities that generate revenue just like any business organization, but hold community objectives for the wellbeing of others in society, rather than primarily aiming to earn profit for their owners.
Surplus refers to the financial gain of a non-profit social enterprise or non-profit organization. The financial surplus, unlike profit, belongs to the business organization and is reinvested back in the social enterprise.