Business Keywords

Good
A physical product such as a house or designer suit
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Service
An intangible item such as insurance
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Product
A more general term which includes both goods and services
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GDP
Measures the total value of the production of an economy over a period of time
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Mission statement
Sets out a business's overall purpose to direct and stimulate the entire organisation
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Aims
Long-term plans of the business from which its corporate objectives are derived
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Objectives
Medium-to long-term goals established to coordinate the business
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Profit
Meaures the extent to which revenues from selling a product exceed the costs incurred in producing it over a time period
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Cash flow
The amount of money moving into and out of a business over a time period
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Stakeholders
Individuals or groups who have an interest in a business
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Revenues
The earnings or income generated by a firm as a result of its trading activities
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Fixed costs
Costs that do not alter when the business alters its level of output
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Variable costs
Alter directly with the business's level of output
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Total costs
Fixed and variable costs added together
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Average costs
Total costs of production divided by the level of production or output to give the cost of producing a single unit of output
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Sole trader
A business that is owned and managed by one person, but it may employ other people
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Unlimited liability
Occurs when an individual or group of individuals is personally responsible for all the actions of their business
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Company
A business organisation that has its own legal identity and has limited liability
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Incoporation
The process if establishing a business as a separate legal identity that allows it to benefit from limited liability
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Shareholder
An investor in and one of the owners of a company
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Limited liability
That in the event of financial difficulties, the personal belongings of shareholders are safe
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Dividends
A share in the profits of a company that are distributed to the holders of certain types of company shares
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Market capitalisation
Total value of the issued shares of a public limited company
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Takeover
Occurs when one company acquires control of another by buying more than 50 percent of its share capital
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Privatisation
Process under which the state sells businesses that it has previously owned and managed to private individuals and businesses
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Real incomes
Incomes that are adjusted for the rate of inflation to show changes in purchasing power
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Interest rates
Price of borrowed money
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Fair trade
Social movement that exists to promote improved trading terms and living conidtions for producers of products in less-developed countires
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Sustainable production
Occurs when the supply of a product does not impose costs on future generations
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Leadership
Includes the functions of ruling, guiding and inspiring other people within an organisation in pursuit of agreed objectives
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Management
Planning, organising, directing and controlling all or part of a buisness enterprise
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Authority
The power or ability to carry through an action
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Delegation
Passing authority down the organisational hierarchy
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Empowerment
Provides subordinates with the means to exercise power or control over their working lives
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Decentralisation
Entails passing authority from the centre of an organisation to those working elsewhere in the business
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Programmed decisions
Familliar and routine decisions
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Non-programmed decisions
Less structured and require unique solutions
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Decision tree
A model that represents the likely outcomes for a business of a number of courses of actio
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Expected Value
The financial outcomes from a specific course of action adjusted to allow for the probability of it occuring
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Net gains
Expected value of a course of action minus the costs associated with it
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The external environment
Comprises those external forces that can influence a business's activites
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Market conditions
Refers to number of features of a market such as the level of sales, the rate at which they are changing and the number and strength of competitors
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Other cards in this set

Card 2

Front

Service

Back

An intangible item such as insurance

Card 3

Front

Product

Back

Preview of the front of card 3

Card 4

Front

GDP

Back

Preview of the front of card 4

Card 5

Front

Mission statement

Back

Preview of the front of card 5
View more cards

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