An organisation that combine the factors of production to achieve a reward, whilst running a risk
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Goods
Items that can be touched
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Services
Items that cannot be touched or held
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Gap in the market
An oppurtunity to sell a new or existing in an exisiting market
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Entrepreneur
Someone who is willing to take the risks involved in starting a business. Entrepreneurs believe that the rewards of starting a business are worth the risks and costs involved.
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Social Enterprise
A business that is set up to help society rather than to make a proift
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Sectors of production
Primary, secondary, tertiary
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Franchise
Occurs when a franchise sells an existing business idea to a franchisee
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Franchisor
Company that has the legal right to the name & allows another to trade under it
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Franchisee
The buyer of a franchise
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Product market
Product that is aimed for a small, specialist selection of the population
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Niche market
A production 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 achieve
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Stake Holder
Indivuals and organisations that are affcted by and affect the activities of a business
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Survival
Need to continue to 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 extenet to which customers are happy with the service/goods
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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 osmething 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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Sole trader
An indivual who sets up in 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
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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 (Ltd)
A company that can only sell shares to family, friends & 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 indivual or organisation that has an interest in the activities of a business. Inculde: shareholders, suppliers, employees, local community, financial instates
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Location
Where th ebusiness chooses 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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