Providing goods and services to satisfy the consumer's needs and wants
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Consumer good
Bought by the general public for their own use
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Producer good
Goods sold from one business to another to produce other goods and services
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Durable goods
A product that lasts a long time
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Non-durable good
A product that doesn't last long
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Personal services
Services offered to people
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Commercial services
Services offered to businesses
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Revenue
The money made by sales of goods/services
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Costs
The spending money necessary for setting up and running a business
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Profit
The money made after the cost of the business is subtracted from the revenue
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Factors of production
The resources needed to create goods/services
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Capital
The money invested into the business to purchase assets. e.g land
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Enterprise
Having the ideas and taking risks to set up a business
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Land
Includes the land itself and the resources below it
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Labour
The human input into the business
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Primary sector
Extracting raw materials from the land and sea
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Secondary sector
Turning the raw material from the primary sector into a product
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Tertiary sector
Providing the consumers with a good or service
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Chain of production
The process by which a product starts as a raw material, goes through secondary production, and then it's sold to the customer.
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Interdependent
When businesses are dependent on one another
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Market
A place where buyers and sellers come together
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Entrepreneur
A person who has an idea, sets up a business and is willing to take on the financial risks by investing their money into the business in hopes of making a profit
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Risk
The possibility of inadequate profits or even losses due to uncertainties.
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Dynamic
An environment that is ever-changing
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Private sector
A sector that is owned by individuals
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Public sector
A sector that is owned by a country or state
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Mission statement
A written declaration of the business' core purpose
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Aim
A specific goal or purpose
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Objective
A specific result that a business aims to achieve within a time frame.(SMART)
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Shareholder
An organisation that owns one or more shares in a company.
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Stakeholder
A person, group or organisation that has interest or concern in a business.
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Business plan
A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals.
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Incorporated
A business that has its own legal identity
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Unincorporated
A business inn high the owner and the business share the same legal identity.
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Unlimited liability
The owner is responsible for all of the businesses debts and may have to sell personal belongings to cover them.
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Limited liability
the condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.
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