Cambridge AS Business (9609) Flashcards - Unit 1: Business and it's Environment Flashcards

The application of moral principles to business decisions and actions, ensuring they are fair, honest, and socially responsible.

Specific goals that a business aims to achieve, guiding its planning and decision-making.

A formal document outlining a business’s objectives, strategies, financial forecasts, and how it intends to achieve its goals.

A business owned and operated by a group of individuals for their mutual benefit, where profits and decision-making are shared among members.

A business’s commitment to managing the social, environmental, and economic effects of its operations responsibly and ethically.

An individual who invests resources and takes on the risk of starting and running a new business venture.

Expansion achieved by merging with or acquiring another business, rather than through internal development.

Individuals or groups outside the business who are affected by its activities, such as customers, suppliers, and the local community.

A legal agreement allowing one business to use the name, logo, and products of another established business in exchange for a fee.

A business that has a separate legal identity from its owners, offering limited liability protection.

Expansion of a business through increasing sales and output, rather than through mergers or takeovers.

Individuals or groups within the business who are affected by its decisions, such as employees, managers, and owners.

A business arrangement where two or more companies agree to work together on a project, sharing capital, risks, and profits.

A legal structure where the owners are only responsible for business debts up to the amount they have invested.

A brief statement that outlines a business’s core purpose, values, and long-term vision.

Basic goods or services essential for human survival, such as food, water, and shelter.

The benefit that is lost when choosing one alternative over the next best option.

A business owned by two or more people who share responsibility, decision-making, profits, and financial risk.

The part of the economy that extracts natural resources, such as farming, fishing, and mining.

An incorporated business where shares are sold privately, often to friends or family, and owners have limited liability.

The part of the economy owned and controlled by individuals or private businesses, rather than the government.

A government-owned organisation that provides goods or services to the public, usually in the public interest.

An incorporated business that can sell shares to the general public on a stock exchange. Owners have limited liability.

The part of the economy owned and operated by the government, providing services such as education and healthcare.

To produce goods and services that satisfy customer wants and needs, using scarce resources effectively.

The sector of the economy focused on knowledge-based services, such as IT, research, and consultancy.

The basic economic problem of having limited resources to meet unlimited human wants.

The sector of the economy that manufactures finished goods from raw materials.

A business with social or environmental objectives that reinvests profits to achieve its mission rather than maximise returns to owners.

A business owned and controlled by one individual who bears full responsibility for decisions, capital, and risk.

The concentration of individuals, firms, or countries on producing tasks or goods they are best at.

The part of the economy that provides services to individuals and businesses, such as retail, finance, and education.

A business approach that considers social, environmental, and financial performance equally in measuring success.

A business where there is no legal distinction between the owner and the business, often resulting in unlimited liability.

A situation where business owners are personally responsible for all debts of the business.

The difference between the selling price of a product and the cost of the materials used to produce it.

Non-essential goods or services that people desire to improve their quality of life.

An employee who takes responsibility for innovating within a business, using company resources to develop new ideas.

A business that operates in more than one country, often with a centralised headquarters managing global activities.

The increase in worth of a product by enhancing it or processing it, calculated as selling price minus input costs.

The resources used in the production process: land, labour, capital, and enterprise.

A constantly changing external environment that affects how businesses operate, such as changes in technology, economy, or customer needs.

The chance that a business may experience lower profits or fail due to internal or external uncertainties.

When two businesses agree to join together to form one combined business entity, sharing ownership, operations, and control.

When one business buys a controlling interest (more than 50%) in another business, giving it control over the acquired company.

A type of external growth where a business merges with or takes over another business in a completely unrelated industry.

When a business merges with or takes over another business in the same industry and at the same stage of production.

When a business takes over or merges with another business at a later stage in the supply chain, such as a manufacturer buying a retailer.

When a business takes over or merges with a supplier at an earlier stage in the supply chain, such as a manufacturer buying a raw materials supplier.

A formal agreement between two or more businesses to work together on a project or achieve shared objectives without forming a new legal entity.

Business goals that are Specific, Measurable, Achievable, Realistic, and Time-bound, used to improve planning and performance.

A merger where both companies agree to join together, with the consent and cooperation of both boards of directors.

A takeover where the acquiring company attempts to gain control of another company without the consent of its management.

The process of producing goods or providing services to satisfy customer needs and wants.

The way an economy is organized based on the relative importance of the primary, secondary, and tertiary sectors.

A business’s commitment to act ethically and contribute to economic development while improving the quality of life for employees, the community, and society at large.

A framework that assesses business performance based on three criteria: profit, people (social responsibility), and planet (environmental responsibility).

A decline in the importance of the manufacturing sector in an economy, often accompanied by growth in the tertiary sector.

A collaborative project between a government and a private sector company, typically to finance, build, or operate infrastructure or public services.

The transfer of ownership of a business or industry from the public sector to private individuals or businesses.

The total income a business earns from selling goods or services before any costs or expenses are deducted.

The financial gain a business makes when total revenue exceeds total costs.

The process by which a business increases the worth of a product or service, usually by improving quality or customer experience, beyond its cost.

A brief statement that defines a business's core purpose and focus, explaining why it exists and what it aims to achieve.

A future-oriented declaration of the business’s long-term goals and aspirations.

Short- to medium-term goals set by departments or teams within a business that support the broader strategic objectives.