Business studies

  • Created by: Enola
  • Created on: 04-11-15 11:53
Primary Sector
Is the extraction of raw materials from earth.
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Secondary Sector
Is the conversion of raw material into finished and semi-finished goods.
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Tertiary Sector
Is the production of services in the economy.
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all natural resources. (rent)
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The human factor of of production. i.e employees. (wages)
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All man made resources. (interest)
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They control the other factors of production to form a business, they take risks. (profit))
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Labour intensive production
A business that uses more labour than capital.
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Capital intensive production
A business that uses more capital than labour.
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The goods and services that are considered to be essential for survival. (air, food, drinks, clothing and shelter)
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The desire of a consumer to buy a good or service.
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We do not have enough resources to meet everyones needs or wants.
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Opportunity cost
The benefits that could have been gained from an alternative use of the same resource.
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Added Value
Is the increased worth that a business creates for its product. It is the difference between what a business pays its suppliers and the price it is able to charge for its product.
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Business objective
goal or targets set by a business that they will try to achieve in either the short or long term
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Mission statement
a brief summary of a firms aims and objectives in the future
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what is the business actually trying to achieve
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what steps do we have to take to achieve our aim.
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trying to do a lot of things at the same at the same time.
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public goods
goods and services the goverment thinks everyone should have but are impossible to charge for. e.g street lights
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Merit goods
goods and services provided by the goverment for everybody because if the provision were left to the free market, they would not be provided at the right price, in the right quantity. e.g state education, health care.
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demerit goods
goods and services the goverment thinks are bad for the population and they want to restrict their use by making them exxpensive.
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the process of transfering organisations from private sector to public sector.
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the process of transfering organisations from the public sector to the private sector
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private sector
they are owned by private individuals or shareholders
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public sector
they are state owned businesses.
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when a person, business or country focuses on producing in a limited range of goods or service, organized to do the job suited for them
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local specialisation
e.g Las vegas are specialised in gamblin
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regional specialisation
e.g Florida is specialised in tourism
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e.g Saudi arabia is specialised in oil.
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division of labour
breaking down production of an item into small, repetitive tasks. Each task completed by a single worker. (or small group)
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workforce size
number of employees
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market hare
how much of the percentage of the market for its good or service it has captured.
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sales revenue
the amount of money that flows through the business
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capital employed
the amount of money invested in the business
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internal/organic growth
it happens nauturally, as a business becomes sucessfull. it is a slow but easy to manage process.
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external/inorganic growth
acquiring other firms by either by merger or take over.
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one comapny buys all or at least 50% of the shares. this way the firm often loses its identity and becomes part of the other company.
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two or more firms agree to join together to form a new business.
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horizontal interegration
when firms engaged in the production of the same type of good or service combine.
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vertical integration
when firms engaged in different stages of production combine.
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vertical integration : forward integration
e.g lumber jack takes over a sawmill. always has a place for his/her wood
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vertical integration : backward integration
e.g IKEA takes over sawmill
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This is the merger or takeover of firms totally unrelated
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Financial limitations
Need money to grow
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Size market
in a mass market lots of area to grow a lot of customers want your product, in a small/niche market number of customer is rediced
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goverment controls
There is a limit to *** much of a market one firm can control
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human resources
Firms will need to increase labour force to carry out duties, lack of the right type of eployees can limit the amount of which a firm can grow.
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a person or group who can influence or is affected by an organisation
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Other cards in this set

Card 2


Is the conversion of raw material into finished and semi-finished goods.


Secondary Sector

Card 3


Is the production of services in the economy.


Preview of the back of card 3

Card 4


all natural resources. (rent)


Preview of the back of card 4

Card 5


The human factor of of production. i.e employees. (wages)


Preview of the back of card 5
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