Unit 1 Key Terms
Terms in this set (25)
refers to the document that sets out the business idea, its goals and objectives and other details of how the business will operate (such as its marketing, operations, and finance). It is often a crucial part of an attempt to raise external sources of finance.
organizations involved in the production of goods and/or the provision of services.
the people or organizations who actually use a product.
the people or organizations that buy the product.
owners or operators of an organization who manage, organize and plan the other three factors of production. They are risk takers who exploit business opportunities in return for profits.
the act of behaving as an entrepreneur while working within a larger organization. Intrapreneurs work in an entrepreneurial capacity, with authority to create innovative products or new processes for the organization.
basic necessities that a person must have to survive, ex food, water, warmth, shelter, and clothing
refers to businesses involved in the cultivation or extraction of natural resources, ex farming, mining, quarrying, fishing, oil exploration and forestry.
can refer to both goods and services. Goods are physical products, ex cars, books and food, Services are intangible products, ex haircuts, bus rides, education and health care.
a subcategory of the tertiary sector, where businesses are involved in intellectual, knowledge-based activities that generate and share information, ex information communications technology and research organizations.
the section of the economy where business activity is concerned with the construction and manufacturing of products.
refers to a shift in the relative share of gross domestic product (or national output) and employment that is attributed to each business sector.
refers to the section of the economy where business activity is concerned with the provision of services to customers.
people's desires, ex the things they would like to have, ex a larger home, a new smartphone or to go on an overseas holiday.
non-profit social enterprises that provide voluntary support for good causes (from society's point of view), such as protection of children, animals and the natural environment.
for-profit social enterprises set up, owned and run by members, who might be employees and/or customers.
Company or Corporation
refers to a business that us owned by shareholders, It has been issued a certificate of incorporation, giving it a separate legal identity from its owners.
Deed of partnership
the legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their share of any profits or losses.
means that there is a legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability.
Initial public offering (IPO)
occurs when a business sells all or part of its business to shareholders on a stock exchange for the first time.
a restriction on the amount of money that owners can lose if their business goes bankrupt, ex shareholders cannot lose mire than they invested in the company.
a type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes
Non-governmental organizations (NGO)
private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit, ex Oxfam and Friends of the Earth
a type of private sector business owned by 2-20 people (known as partners). They share the responsibilities and burdens of running and owning the business.
Private limited company
a business owned by shareholders with limited liability but whose shares cannot be bought by ot sold to the general public