AS Unit 1 Business and it's Environment
A document setting out a business's objectives and how it will achieve them
A new business
Business expansion without taking over or merging with another business (organic growth)
Business expansion taking over or merging with another business )
"A business owned by one person who is responsible for all decisions, capital invested and risk."
"Two or more people join to set up a business. Shared decision making, capital invested and risk."
Private Limited Company
Incorporated business with shares sold to friends and family. Limited liability.
Public Limited Company
Incorporated business with shares sold to general public. Limited liability.
Two companies share capital and expertise on a project. Share risks and profits.
Buying the license to use another companies logo and sell their products.
No separation between the company and the owners in law
Business is a separate legal entity - separation between owners and the company
Owners responsibility for company debts restricted to what they have invested
Owners personal assets may be taken to pay for debts of the company.
Government owned organisation set up to provide service to the public
Aims or targets a business sets out to achieve
private enterprise which uses profits to persue environmental or social objectives
Individual or group inside the business impacted by the business activity (owners/shareholders, managers, employees)
person or group outside the business impacted by the business activity
capital given by a government to a business to assist with start up costs, innovation or business growth
Triple Bottom Line,
Business objectives not just based on profit, but also social and environmental objectives
business, or other organization which is owned and run jointly by its members, who share the profits or benefits.
Corporate Social Responsibility,
businesses who take responsibility for the social and economic impact of their activity
“Doing the right thing” basing business decisions on what is morally right
A mission statement is a visionary aim for a business of the direction/purpose
Purpose of Business Activity,
Business satisfies peoples (consumers) wants
the potential benefits a business misses out on when choosing one alternative over another.
Selling price - cost of bought in materials
Using natural resources to make raw materials for business
Manufacturing goods from raw materials
Services to consumers and other businesses (B2B)
Part of the economy owned and controlled by the government
Part of the economy owned and controlled by private individuals
Someone who invests capital, takes a risk and starts up and operates a new business venture