Setting Up a Business Key Words (Unit 1)

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Business Enterprise
An organisation that combines the factors of production to achieve, whilst running a risk
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Goods
Items that can be touched, physical objects
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Services
Items that can not be touched or held, not physical items
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Entrepreneur
Someone who is willing to take the risks involved in starting a business. Enrepreneurs believe that the rewards of a business is worth all the effort and costs involved
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Social Enterprise
A business that is set up to help society rather than to make a profitq
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Sectors of Production
primary, secondary and tertiary
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Franchise
Occurs when a franchisor sells an existing business idea to a franchisee
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Franchisor
Company that has the legal right to the name and allows another to trade under it
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Franchisee
The buyer of a franchise
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Product Market
A product that is aimed at the majority of the population
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Niche Market
A product that is aimed for a small, specialist section of the population
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Objective
A target that is set for a business to acheive
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Stake Holder
Individuals and organisations that are affected by and affect the activities of a business
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Survival
Needed to continue trade
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Growth
Ability to expand
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Profit
Money left after costs have been deducted from revenue
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Market Share
The proportion of total market sales sold to one business
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Customer Satisfaction
The extent to which customers are happy with the goods/services
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Ethical Objective
The moral decisions made by a business
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Business Plan
A document setting out what the business does at present, plus what it intends to achieve in the future and how this will be accomplished. The plan will include marketing and financial plans
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Business Planning
The process of producing a business plan
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Risk
The possibility of something going wrong
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Uncertainty
Something that we cannot be sure will happen
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Legal Structure
The legal organisation of a business
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Incorporation
The process of forming a limited liability company
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Sold Trader
An individual who sets up in a business on his or her own
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Unlimited Liability
Occurs when the personal possessions of the owners of the business is at risk if there are any problems. There is no limit to the amount of money the owners may have to pay out
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Partnership
Formed when two or more people set up a business together. Their can be up to 20 partners.
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Deed Of Partnership
An agreement between partners that sets out the rules of the partnership, such as how profits will be divided and how the partnership will be valued if someone wants to leave.
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Company
A business that has its own legal identity. It can own items, owe money, sue and be sued
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Private Limited Company
A company that can only sell shares to family, friends and employees and is not listed on the stock market
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Shares
Part ownership of a company
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Shareholder
An owner of a company. Each shareholder owns a share of the business. Shareholders are stakeholders but so are suppliers, employees, the distributors, the government and the community
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Stakeholder
An individual or organisation that has an interest in the activities of a business. Includes: shareholders, suppliers,employees,local community and financial instates
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Location
Where the business choose to set up
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Location Factors
Includes: transport links, raw materials, labour, competition, technology, proximity to market, costs
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Other cards in this set

Card 2

Front

Items that can be touched, physical objects

Back

Goods

Card 3

Front

Items that can not be touched or held, not physical items

Back

Preview of the back of card 3

Card 4

Front

Someone who is willing to take the risks involved in starting a business. Enrepreneurs believe that the rewards of a business is worth all the effort and costs involved

Back

Preview of the back of card 4

Card 5

Front

A business that is set up to help society rather than to make a profitq

Back

Preview of the back of card 5
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