Chain of Production: The process of a product starting as raw materials manufactured in secondary production and then serviced in some way in tertiary production.
Primary sector: The first stage of production involving the extraction of the raw materials and natural resources.
Secondary sector: The second stage of production, where the raw materials are manufactured into finished products.
Tertiary sector: The third stage of production, where a service is provided for consumers.
Interdependence: The way in which business in different sectors of business activity depend on each other. The primary sector depends on the secondary sector to make products from the raw materials it produces. In turn, the primary and secondary sectors depend on the tertiary sector to provide the necessary services for the businesses.
Specialisation: Where a business concentrates on one particular activity.
Added value: When a business increases the value of a product- for example, making a car from pieces of metal or making a meal from various ingredients.
De-industrialisation: The reduction of importance of the secondary sector of business activity in a country.
Business objectives: Business objectives are what the business is trying to achieve. Examples are profit, growth, survival and providing a service. Objectives vary from business to business will change with time.
Mission statement: A mission statement is a brief summary of the main objectives a business organisation has.
Satisficing: This means that a business will make enough profit to enable it to meet its needs, and not make as much profit as possible.
Dividend: A payment made to shareholders from the profits made by a private or public limited company.
Market share: This is the amount of a market that a business controls. It is measured as a percentage.
Private sector: The part of business activity owned by private individuals. This is the greater part of business activity and includes sole proprietors, partnerships and private and public limited companies.
Public sector: The party of business activity controlled by local and central government. Including health, education, fire service, police and the Post Office.
Public corporation: An organisation owned by national government.
Stakeholders: An individual or group of people who have an interest in a business, including workers, customers, owners and the local community.
Incorporated: A form of business organisation which is a separate legal entity. It has limited liability and is owned by shareholders.
Unincorporated: A type of business organisation which has unlimited liability.
Co-operatives: Trading organisations where a large number of independent producers work together and trade as though they are a single larger business.
Sole proprietor: Sometimes known as sole trader. One person owns the business.
Partnership: A form of unincorporated business organisation which is owned by more than one person.
Unlimited liability: Owners of the business are liable for its debts.
Bankruptcy: Something that affects individuals and unincorporated businesses when liabilities are greater than assets.
Private limited company: A business owned by shareholders. It is normally identified by the word ‘Limited’ or ‘Ltd’ somewhere in the name of the business.