9151472
Description
Flashcards by Erica Mauro, updated more than 1 year ago
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Created by Erica Mauro
almost 7 years ago
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| Question | Answer |
| Capital Intensive Process | Requires large amounts of money and other financial resources to produce a good or service |
| Labour intensive process | A larger portion of total costs is due to labour as compared with the portion for costs incurred in purchase, maintenance, and depreciation of capital equipment |
| Goods | Tangible products that we can physically take home |
| Services | Intangible and the buyer does not physically take them home |
| Primary sector | The industries engaged in production or extraction of natural resources such as crops, oil, and ores. |
| Secondary sector | The portion of an economy that includes light and heavy industrial manufacturers of finished goods and products from raw materials |
| Tertiary sector | Voluntary or non-profit sector of an economy (services) |
| Quaternary sector | The portion of an economy that is based on knowledge applicable to some business activity that usually involves the provision of services. E.g. information gathering, research and development; |
| Chain of production | the steps through the different sectors that must be made to turn raw materials into a consumer good that is marketed |
| Entrepreneurs | An individual who demonstrates enterprise and initiative in order to make a profit |
| Intrapreneurs | An individual employed by a large organization who demonstrates entrepreneurial thinking in the development of new products or services |
| Sole trader | A person who owns and runs their own business and who has complete control over decisions |
| Partnership | A business owned and controlled by two or more people who share responsibility and decision making |
| Company | A business organization established for a specific purpose and registered according to local or national legislation |
| Dividends | A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves). |
| Limited Liability | Type of investment in which a partner or investor cannot lose more than the amount invested. Thus, the investor or partner is not personally responsible for the debts and obligations of the company in the event that these are not fulfilled. |
| Social Enterprise | A type of non-profit business that employs people and earns income in order to help address perceived social or environmental issues. |
| Cooperative | Firm owned, controlled, and operated by a group of users for their own benefit |
| Public Private Partnership | A business created between a private sector business and a public sector |
| Private sector | The part of national economy made up of private enterprises. It includes the personal sector (households) and corporate sector (companies), and is responsible for allocating most of the resources within an economy |
| Public sector | The part of national economy providing basic goods or services that are either not, or cannot be, provided by the private sector. |
| Private Limited company | A type of company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. |
| Public Limited company | A company whose securities are traded on a stock exchange and can be bought and sold by anyone |
| Micro-financiers | Provide small amounts of finance to those who don't have access to it such as low-income or unemployed individuals |
| Surplus | more than what is needed or used; excess. |
| Deficit | an excess of expenditure or liabilities over income or assets in a given period. |
| Revenue | The income generated from sale of goods or services, or any other use of capital or assets, before any costs or expenses are deducted. |
| Non-Governmental Organizations (NGO's) | Private sector, voluntary organization that contributes to, or participates in, cooperation projects, education, training or other humanitarian or progressive activities. |
| Vision statement | A philosophy, vision or set of principles which steers the direction and behaviour of an organization |
| Mission statement | a formal summary of the aims and values of a company, organization, or individual. |
| Aims | A businesses long-term goals, what it wants to achieve in the future. |
| Objective | Have specific characteristics in order to achieve the aims |
| Business strategy | A plan to achieve a strategic objective in order to work towards the aims of the business |
| Business tactic | A plan to achieve a tactical objective to work towards the strategies of the business |
| SWOT analysis | Situation analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to chart a strategy. |
| Diversification | Introducing a new product to the market |
| Internal stakeholders | Individuals or groups that work within the business |
| External stakeholders | Individuals or groups that are outside the business |
| shareholders | An individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued. |
| stakeholder | A person, group or organization that has interest or concern in an organization. |
| Economies of scale | The reduction in long-run average and marginal costs arising from an increase in size of an operating unit |
| Diseconomies of scale | Increase in long-term average cost of production as the scale of operations increases beyond a certain level |
| Fixed costs | A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages. |
| Variable costs | A periodic cost that varies in step with the output or the sales revenue of a company. |
| Average costs | Production cost per unit of output, computed by dividing the total of fixed costs and variable costs by the number of total units produced |
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