1 AS Business and it's Environment 2023 Flashcards


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1

Business ethics,

“Doing the right thing” basing business decisions on what is morally right

2

Business Objectives,

Aims or targets a business sets out to achieve

3

Business Plan

A document setting out a business's objectives and how it will achieve them

4

Co-operative,

business, or other organization which is owned and run jointly by its members, who share the profits or benefits.

5

Corporate Social Responsibility,

businesses who take responsibility for the social and economic impact of their activity

6

Entrepreneur,

Someone who invests capital, takes a risk and starts up and operates a new business venture

7

External Growth

Business expansion taking over or merging with another business )

8

External Stakeholders,

person or group outside the business impacted by the business activity

9

Franchise

Buying the license to use another companies logo and sell their products.

10

Incorporated Business

Business is a separate legal entity - separation between owners and the company

11

Internal Growth

Business expansion without taking over or merging with another business (organic growth)

12

Internal Stakeholders,

Individual or group inside the business impacted by the business activity (owners/shareholders, managers, employees)

13

Joint Venture

Two companies share capital and expertise on a project. Share risks and profits.

14

Limited Liability

Owners responsibility for company debts restricted to what they have invested

15

Mission Statement,

A mission statement is a visionary aim for a business of the direction/purpose

16

Needs

Goods or services we need to survive

17

Opportunity Cost,

the potential benefits a business misses out on when choosing one alternative over another.

18

Partnership

Two or more people join to set up a business. Shared decision making, capital invested and risk.

19

Primary Sector,

Using natural resources to make raw materials for business

20

Private Limited Company

Incorporated business with shares sold to friends and family. Limited liability.

21

Private Sector,

Part of the economy owned and controlled by private individuals

22

Public Corporation,

Government owned organisation set up to provide service to the public

23

Public Limited Company

Incorporated business with shares sold to general public. Limited liability.

24

Public Sector,

Part of the economy owned and controlled by the government

25

Purpose of Business Activity,

Business satisfies peoples (consumers) wants

26

Quaternary Sector

Sector of the economy is based upon the economic activity that is associated with either the intellectual or knowledge-based economy.

27

Scarcity

Not enough resources/goods or services to provide for peoples' (consumers) unlimited wants

28

Secondary Sector,

Manufacturing goods from raw materials

29

Social Enterprise,

private enterprise which uses profits to persue environmental or social objectives

30

Sole Trader

A business owned by one person who is responsible for all decisions, capital invested and risk.

31

Specialisation

People in business focus on what they do best

32

Tertiary Sector,

Services to consumers and other businesses (B2B)

33

Triple Bottom Line,

Business objectives not just based on profit, but also social and environmental objectives

34

Unincorporated Business

No separation between the company and the owners in law

35

Unlimited Liability

Owners personal assets may be taken to pay for debts of the company.

36

Value Added,

Selling price - cost of bought in materials

37

Wants

Good or service people want but isn't essential for survival

38

Intrapreneur

An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the intrapreneur has access to the resources and capabilities of an established company.

39

Multinational Business

A multinational corporation (MNC) is a company that has business operations in at least one country other than its home country. Generally, a multinational company has offices, factories, or other facilities in different countries around the world as well as a centralised headquarters which coordinates global management.

40

Adding Value

(Added Value) the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.

41

Factors of production

Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital.

42

Dynamic Business Environment

None found

43

Business Risk and

Business Risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.

44

merger

A merger is an agreement that unites two existing companies into one new company.

45

takeover

when a company buys more than 50% of the shares of another company and becomes the controlling owner of it – often referred to as ‘acquisition’.

46

Conglomerate Diversification

integration with a business in a different industry

47

Horizontal Integration

Horizontal integration –integration with firms in the same industry and at
same stage of production

48

Vertical Integration (forward and backward)

"Forward - forward integration with

49

Strategic Alliance

Strategic alliances are agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

50

SMART Objectives

SMART Criteria: (Specific, Measurable, Achievable, Realistic and Relevant, Time-Specific) to guide in the setting of goals and objectives for better results

51

Friendly merger

The acquisition of one company by another with the full knowledge and consent of the target company's board of directors.

52

Hostile takeover

The acquiring company tries to take over a target company against the wishes of the target company's management.