Business Studies: Unit 1 Key Words
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- Created by: fingoodfellow
- Created on: 11-11-21 18:25
Entrepreneur
A person who takes the risk of
starting and running a business enterprise.
starting and running a business enterprise.
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Enterprising characteristics
The features of an entrepreneur, which include being determined, creative and having ability to
take risks.
take risks.
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Aims and objectives
The things that a
business is trying to achieve, such as grow
larger, or make more profit.
business is trying to achieve, such as grow
larger, or make more profit.
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Business plan
A simple plan which sets out
details on the product or service being sold,
where the finance is to come from to start the
business, how the product or service is to be
marketed, and the market research to show
there is a need for what is being sold.
details on the product or service being sold,
where the finance is to come from to start the
business, how the product or service is to be
marketed, and the market research to show
there is a need for what is being sold.
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Sole trader
A business owned by one person.
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Partnership
A business owned by between two
and 20 partners
and 20 partners
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Private limited company
Often (but not
always) a smaller business. Owned by at least
two shareholders. Shares cannot be sold to the
general public. Has Ltd after its name.
always) a smaller business. Owned by at least
two shareholders. Shares cannot be sold to the
general public. Has Ltd after its name.
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Public limited company
A large business,
where shares can be sold to the general public
enabling vast sums of money to be raised to
develop the company. Has plc after its name.
where shares can be sold to the general public
enabling vast sums of money to be raised to
develop the company. Has plc after its name.
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Deed of partnership
A document setting out the
operations of the partnership, including amount
of capital to be invested and how profits will be
shared.
operations of the partnership, including amount
of capital to be invested and how profits will be
shared.
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Sleeping partner
A partner who invests in a
partnership but has no part in the running of the
business.
partnership but has no part in the running of the
business.
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Limited liability partnerships
Part partnership part limited company. Owners are members, not partners. They have limited liability and have to make their finances available to the public.
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Limited liability
Where the responsibility for the debts of a business is limited to the amount invested by a shareholder. A feature of private and public limited companies.
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Unlimited liability
Where the responsibility for
all the debts of a business rests with the owners
of the business. A feature of sole traders and
partnerships.
all the debts of a business rests with the owners
of the business. A feature of sole traders and
partnerships.
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Shareholders
The owners of a private or
public limited company.
public limited company.
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Dividend
The money paid to a shareholder from
the profits of a limited company. This is the reward for the shareholder taking a risk by investing money in the company.
the profits of a limited company. This is the reward for the shareholder taking a risk by investing money in the company.
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Capital
Money raised to start or develop a business.
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Business objectives
What the business aims to achieve, and include survival, profit, growth and providing a service.
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Profit
The difference between revenue and costs.
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Survival
When a business just manages to keep going.
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Growth
Where a business becomes larger, for example by making more products or opening more places where goods and services are sold.
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Providing a service
Where a business makes sure that the needs of the customer are being met.
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Market share
The share of the total market for a product or service and is shown as a percentage.
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Market share (2)
The percentage of total sales of a
product that a business has made. If a business
sells 20,000 products and the total market for
that product is 50,000, then the business has a
market share of 40 per cent.
product that a business has made. If a business
sells 20,000 products and the total market for
that product is 50,000, then the business has a
market share of 40 per cent.
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Stakeholders
Groups or individuals who have
an interest in a business.
an interest in a business.
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Internal stakeholders
The business owners and people who work in the business.
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External stakeholders
The local community, suppliers, customers and government.
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Stakeholder group
Owners, employees, customers, suppliers, government, local community.
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Growth
When sales are growing strongly as the
new product or service becomes known.
new product or service becomes known.
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Organic growth
Growth of a business internally by increasing sales. Sales can be increased in a number of different ways.
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Horizontal growth
A merger or takeover where
two businesses are involved in a similar operation, e.g. two electrical producers or two shops selling fashion clothing.
two businesses are involved in a similar operation, e.g. two electrical producers or two shops selling fashion clothing.
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Backwards vertical growth
When a business
merges with, or takes over a business that
supplies it with goods or services.
merges with, or takes over a business that
supplies it with goods or services.
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Forwards vertical growth
When a business
merges with or takes over a business that it
supplies goods or services to.
merges with or takes over a business that it
supplies goods or services to.
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Merger
Where two or more businesses agree to
join together
join together
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Takeover
Where a business takes a controlling
interest in another business.
interest in another business.
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Diversification
When a business merges with or
takes over another business with which there is no connection.
takes over another business with which there is no connection.
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Invention
The introduction of a totally new
product or feature.
product or feature.
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Customer service
The service given to customers, including service at the time of sale and after the sale.
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Revenue
The money from sales.
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Profit
The revenue received by a business minus
the costs of running the business.
the costs of running the business.
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Customers
Buyers who buy goods and
services for the satisfaction or benefit they will
get from them. Customers largely buy from
retailers.
services for the satisfaction or benefit they will
get from them. Customers largely buy from
retailers.
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Local community
A group of interacting people living in a common location.
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Other cards in this set
Card 2
Front
The features of an entrepreneur, which include being determined, creative and having ability to
take risks.
take risks.
Back
Enterprising characteristics
Card 3
Front
The things that a
business is trying to achieve, such as grow
larger, or make more profit.
business is trying to achieve, such as grow
larger, or make more profit.
Back
Card 4
Front
A simple plan which sets out
details on the product or service being sold,
where the finance is to come from to start the
business, how the product or service is to be
marketed, and the market research to show
there is a need for what is being sold.
details on the product or service being sold,
where the finance is to come from to start the
business, how the product or service is to be
marketed, and the market research to show
there is a need for what is being sold.
Back
Card 5
Front
A business owned by one person.
Back
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