1021649
Description
Flashcards by nadinepisa, updated more than 1 year ago
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Created by nadinepisa
almost 10 years ago
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| Question | Answer |
| Consumer Goods | Goods sold to the general public. -Durable goods: cars + washing machines - Non-durable goods: foods, etc. Goods that can only be used once |
| Capital Goods | Goods that are used by an industry to aid in the production of other goods -Eg. machines + commercial vehicles |
| Factors of Production | Resources needed by businesses to produce goods + services |
| Land | Natural resources that can be found on the planet |
| Labour | Physical + mental human effort used in the production process |
| Entrepreneurs | People who manage/organize/plan the other 3 factors of production |
| Business Functions/ Functional Areas | Used to refer to the different sections of a business. -Marketing, Finance, Human Resource Management, & Operations Management |
| Marketing | Commercial process involved in creating+ designing, promoting & selling & distributing a product or service |
| Finance | Management of money & credit & banking & investments |
| Human Resources Management | Process of determining human resource needs & then recruiting, selecting, developing motivating, evaluating, compensating & scheduling employees to achieve organizational objectives |
| Operations Management | Management processes used to design, supply, produce & deliver goods + services to customers |
| Primary Sector | The business involved in the cultivation or extraction of natural resources - Eg. Farming, mining, quarrying, fishing oil exploration + forestry |
| Secondary Sector | Where business activity is concerned with the construction & manufacturing of physical products -Automation & mechanization in modern societies has seen this sector decline in terms of employment |
| Tertiary Sector | Where business activity is concerned with the provision of services to customers. - In modern societies, it is the largest sector in terms of employment & output |
| Businesses | Organizations that are involved in the production of good and/or the provision of services |
| Division of Labour | Specialization of workers in the provision of goods and/or services by breaking a job down into the particular role/components that are repeated by some workers |
| Industrialization | Process experienced by a country that moves away from primary production towards manufacturing as its principal sector for national output & employment |
| Opportunity Cost | Cost measured in terms of the next best alternative that is foregone when a choice is being made. |
| Private Sector | Part of the economy under the control of private individuals & businesses rather than the government |
| Public Sector | Part of the economy under the control of the government |
| Structural Change | Shift in the relative share of national output + employment that is attributed to each business sector (primary, secondary, etc.) |
| Value Added | Difference between a product's price & the total cost of the inputs that went into making it |
| Public-Private Enterprises | W |
| Sole Trader | Self-employed person that runs the business on their own + has sole responsibility for its success or failure(unlimited liability) |
| Partnerships | Form of private sector business owned by 2-20 people(partners). They share the responsibilities + burdens of running + owning the business |
| Limited Liability | Restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy. Owners will lose no more than the amount of capital they put into the business |
| Private Limited Company (Ltd.) | Organization owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public |
| Public Limited Company (PLC) | Incorporated business organization that allows the general public to buy + sell shares in the company via stock exchange |
| Non-governmental Organization (NGO) | Any private sector organization that doesn't aim to make a profit, but they operate for the benefit of others in society |
| Non-Profit Organizatons (NPOs) | Organization that has aims other than making/distributing profit which is usually governed by a voluntary organization |
| Silent/Sleeping Partner | An investor of a partnership who isn't directly involved in the daily running of the business |
| Unlimited Liability | Owner is personally + fully responsible for all loses + debts of the business |
| Mission Statement | Declaration of an organization's overall purpose. It forms the foundation for setting the objectives of a business |
| Vision Statement | An organization's long-term aspirations -I.e. Where it ultimately wants to be |
| S.M.A.R.T. Business Objectives | Means that well set objectives have to be: S pecific M easurable A chievable R ealistic T imed..... |
| Strategic Objectives | Long-term objectives businesses use to achieve their overall aim |
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