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Unit 1 AICE business

Terms in this set (38)

social enterprise
a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners
triple bottom line
the three objectives of social enterprises; economic, social, and environmental
opportunity cost
the benefit of the next most desired option which is given
primary sector
firms engaged in farming, fishing, and other industries that extract natural resources so they can be used and processed by other firms
secondary sector
firms that manufacture and process products from natural resources
tertiary sector
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
private sector
comprises businesses owned and controlled by individuals or groups of individuals
public sector
comprises organisations accountable to and controlled by central or local government
mixed economy
economic resources are owned and controlled by both private and public sectors
free market economy
economic resources owned largely to the private sector with very little state intervention
command economy
economic resources owned planned and controlled by the state
sole trader
a business in which one person provides in permanent finance and in return has full control of the business and is able to keep all of the profits
partnership
a busines formed by 2 or more eople to carry on a business together with shared capital investment and usually shared responsibilities
limited liability
the only liability a shareholder has if the company fails is the amount invested in the company not the total weath of the shareholder
private limited company
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
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