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Jack's Business Vocab
Terms in this set (98)
The long term goals which a business hopes to achieve.
A model looking at growth potential of a firms products. It classifies strategies into market penetration, new product development, market development and diversification and measures the degree of risk associated with each strategy. pg.56
Articles of Association
The company's purpose and lays out how tasks are to be accomplished within the organization, including the process for appointing directors and how financial records will be handled.pg.
Backward vertical integration
Integration with a business in the same industry but a supplier of the existing business (pg. 96)
Any organisation that uses resources to meet the needs of customers by providing a product or service that they demand (pg. 3)
A written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts (pg. 14)
This consists of the finance needed to set up a business and pay for its continuing operations as well as all of the man made resources used in production. These include captial goods such as computers machines factories, offices, and vehicles. Some firms are capital intensive, that is they have a high proportion of capital to other factors of production, e.g. power stations. Page 3
Physical goods that are used by industry to aid in the production of other goods and services such as machines and commercial vehicles. Page 3
Certificate of Incorporation
The name of the document issued to a limited company to show that it has been legally formed and is therefore a separate legal entity from its owners. Page 3
An organisation set up to raise money to help people in need or to support causes that require money. (32)
Economic resources are owned, planned and controlled by the state. (19)
Owned by shareholders, thus only two types... private & public limited.
Computer Aided Design
Using computers and IT when designing products (Page.77)
Computer Aided Manufacturing
The use of computers and computer-controlled machinery to speed up the production process and make it more flexible (Page.77)
Merger with or takeover of a business in a different industry (Page.96)
intangible provision of a activity to end users (3)
A group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically (26)
Corporate social responsibility
This concept applies to those businesses that consider interests of society by taking responsibility for the impact of their decisions and activities on customers, employees, communities, and environment (46)
The physical and tangible goods sold to the general public. They include cars and washing machines, which are durable consumer goods, Non-durable consumer goods include food and drinks that can only be used once (340)
Deed of Partnership
A document containing an agreement that details the rights and obligations of each partner participating in a venture (22)
Diseconomies of scale
Factors that cause average costs of production to rise when the scale of operation is increased. p 90-91
The process of selling different, unrelated goods or services in new markets. p 57-58
Division of labor
The specialization of cooperating individuals who perform specific tasks and roles.
Increases in the level of a country's Gross Domestic Product or GDP (pg. 72)
Economies of scale
Reductions in a firm's unit (average) costs of production that result from an increase in the scale of operations (pg. 89)
The driving force of business, provided by risk-taking individuals, which combines the other factors of production into a unit that is capable of producing goods and services. It provides a managing, decision-making and coordinating role. Without this essential input, even very high-quality land, labor and capital inputs will fail to provide the goods and services that customers need (pg.3)
Someone who takes the financial risk of starting and managing a new venture (pg. 9)
Taking the financial risk of starting and managing a new venture (Page 9)
Moral guidelines that determine decision-making (Page 43)
The value of one currency in terms of another currency (Page 72)
External growth (inorganic growth)
Business expansion achieved by means of merging with or taking over another business, from either the same or a different industry (Page 94).
Factors of Production
The human, physical, and financial resources needed by business to produce goods or services. The four main factors (or inputs) are: Land, Labor, Capital, and Enterprise (Page 3).
Changes in government spending levels and tax rates (Page 80).
Forward vertical integration
Integration with a business in the same industry but a customer of the existing business (Page 96).
A contract allows the franchise to use the name, logo, and marketing of the franchiser. (Page 99)
Free Market Economy
Economy that works on the assumption that market forces, such as supply and demand, are the best determinants of what is right for a nation's well-being. (Page 19)
The purpose of free trade is to make it easier for companies to trade with one another internationally. This involves getting rid of tariffs and embracing globalization. (Page 100)
The growing integration of countries through increased freedom of global movement of goods, capital and people. Page 100
The physical and tangible goods sold to either the public or industry to aid in the production of other goods and services. Page 3
Gross Domestic Product
The monetary value of all the finished goods and services produced within a country's borders in a specific time period. Page 265
Integration with a fir in the same industry and at the same stage of production (pg.96)
Costs which cannot be identified with a unit of production or allocated accurately to a cost centre -also known as overhead cost. (pg. 242)
Inflation (Cost-Push, Demand-Pull)
The rate of change in the average level of prices (pg.80)
The use of electronic technology to gather,store,process and communicate information. Pg 75
A payment, per unit of time, for the use of borrowed money (borrowers pay interest, lenders receive interest.)
someone within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through using 'entrepreneurial talents' such as risk taking and innovation. Pg 9-10
Two or more businesses agree to work closely together on a particular project and create a separate business division to do so. Pg 98
Manual and skilled labor make up the workforce of a business. Some firms are labor-intensive, that is they have a high portion of labor inputs to other factors of production e.g. house-cleaning service. Page 3.
This general term not only includes land itself but all of the renewable and non-renewable resources of nature such as coal, crude oil, and timber. Page 3.
The only liability - or potential loss - a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder. Page 22.
The strategy of selling existing products in new markets (pg. 57)
Achieving higher market shares in existing markets with existing products (pg. 57)
The percentage of sales in the total market sold by one business (pg. 43)
Put the interest of shareholders above those of other stakeholders. (pg. 43)
An agreement by shareholders and mangers of two business to bring both firms together under a common board directors with shareholders in both businesses owning shares in the newly merged (pg. 95)
The provision of very small loans by specialist finance businesses, usually not traditional commercial bank. (pg. 27)
A mission statement is an attempt to condense the central purpose of a business's existence into one short paragraph. It is not concerned with specific, quantifiable goals but tries to sum up the aims of the business in a motivating and appealing way. It can be summed up as a statement about 'who we are and what we do'. (pg. 36)
Economic resources are owned and controlled by both private and public sectors.
Changes in the level of interest rates which make loan capital more or less expensive
A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management.
A legally constituted body with no participation or representation of any government which has a specific aim and purpose, e.g. supporting disadvantaged groups in developing countries or advocating the protection of human rights
Short-term more specific goals of the organization based on the aims
Tthe growth rate that a company can achieve by increasing output and enhancing sales (investopedia)
a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities (21)
Non-profit organizations established to address a special interest of the group; aim to win public and media support from their actions and/or influence government actions (other types of organizations ppt)
Firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms.
Private limited company
A small to medium-sized business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public.
Compromises businesses owned and controlled by individuals or a group of individuals (6,52)
The sale of public sector organizations to the private sector (19)
The development and sake of new products or new developments of existing products in existing markets (57)
Using barriers to free trade to protect a country's own economy (100)
a business enterprise owned and controlled by the state (20)
Public limited company
a limited company with the legal right to sell its shares with the general public (23)
comprises organizations accountable to and controlled by a central or local government (the state) PP 1.2
involvement of the private sector, in the form of management expertise and/or financial investment, in public sector projects aimed at benefiting the public. pg 29
Is focused on information technology(IT) business and information service providers such as research and development, business consulting and information gathering. pg 6
A restriction on the physical number of a particular import.
six months of falling GDP(negative growth) pg 72.
The total value of sales made during the trading period= selling price x quantity sold (265)
Firms that manufacture and process products from natural resources, including computes, brewing, baking, clothing and construction. (6)
They are individuals or other businesses that invest their money to provide capital for a company. (ppt 1_2 types of businesses)
Specific, Measurable, Achievable. Realistic and Relevant, Time-specific (39)
An independent report on the impact a business has on society. This can cover pollution levels, health and safety record, sources of supplies, customer satisfaction and contribution to the community pg.47
A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners pg.25
A self - employed person who runs the business on their own and has sole responsibility for its success or failure pg. 21
Stakeholders (internal and external)
People or groups of people who can be affected by, and therefore have an interest in any action by an organization pg.45
An acronym standing for social, technological, economic, environmental, political, legal, and ethical external factors that impact on business pg. 71
Agreements between firms in which each agrees to commit resources to achieve a agreed set of objectives "page 98"
A term used to refer to any plan or scheme to achieve the long-term aims of the business.
A form of strategic analysis that identifies and anylises the main internal strengths and weaknesses external opportunities and threats that will influence the future direction and success of a business "page 54"
Short-term policy or decision aimed at resolving a particular problem or meeting a specific part of the overall strategy
When an acquiring company makes a bid for a target company. If the takeover goes through, the acquiring company becomes responsible for all of the target company's operations, holdings and debt.
A duty (tax) that is placed upon import to protect domestic industries from foreign competition and to raise revenue for the government.
Business activities- firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism, and telecommunications. pg.6
When someone is actively searching for work but cannot find it.
Refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.
Describes a picture of the 'preferred future' and outlines how the future will look if the organization achieves its mission.
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