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IB BM Exam 1 - 1.1 & 1.2 & Ethics & CSR
IB Business Management 1.1 Introduction to Business Management
Terms in this set (51)
the people or organizations that buy a product
the people or organizations who actually use the product
The physical and tangible goods sold to the general public.
durable consumer goods
physical and tangible goods that have a life span of more than three years and are sold to the public. They include cars and washing machines
Non-durable consumer goods
physical and tangible goods that are used up within three years sold to the public. Include food, drinks and sweets that can only be used once.
Non-tangible products that are sold to the general public and include hotel accommodation, insurance services and train journeys
Physical goods that are used by an industry to aid in the production of other goods and services, such as machines and commercial vehicles
Factors of Production
resources needed by businesses to produce goods or services. Land, Labor, Capital and Enterprise
Natural resources that can be found on the planet. This includes renewable and non-renewable natural resources such as water, wood, fish and physical land itself
The physical and mental human effort used in the production process
The finance needed to set up a business and pay for its continued operations or expansion. Also includes the man-made goods used in the production process
Risk taking individuals who combine 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
Marketing, Finance, Human Resource Management and Operations Management
part of an organization responsible for creating and designing, promoting and selling and distributing a product or service.
part of an organization responsible for a business's money includes planning, auditing, accounting for and controlling its company's finances, credit and investments.
Human Resource Management
part of an organization responsible for recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organisational objectives
part of an organization responsible to design, supply, produce, and deliver goods and services to customers
involves extracting raw material from the earth. It includes activities such as agriculture, fishing, forestry, and mining for minerals, metals, and oil.
involves transforming raw materials into finished or semi-finished products. It includes construction, processing and manufacturing.
involves the delivery of services such as education, health care, retail, travel and tourism, entertainment and home and car repair services.
focused on information technology (IT) businesses and information service providers such as research and development, business consulting and information gathering
the individuals with the talent, perseverance and appetite for risk that lead them to create new organisations.
individuals encouraged by their employers to take risks to develop new products, processes, and services while retaining their status as employees.
a formal written document that describes the business, sets out its objectives and strategy, identifies its market and provides its financial forecasts.
Chain of production
the stages that a good or service goes through to get to the consumer
Refers to a shift in the relative share of gross domestic product (or national output) and employment that is attributed to each business sector
business and organizations owned and controlled by individuals or groups of individuals tat are not under government control
organizations that are primarily financed and controlled by a county's government
economic resources are owned and controlled by both private and public sectors
economic resources are owned largely by the private sector with very little state intervention
economic resources are owned, planned and controlled by the state
when a government transfers the ownership of a business from the public sector to the private sector. IE: Public Parking, Cellphone Service, etc
when a business has total control over an entire product or service
when a government takes ownership of a business from the private sector into the public sector. IE: Public Transportation, Electricity, etc.
A business enterprise owned and controlled by the state - also known as a nationalised industry or a state owned enterprise
sole trader/sole proprietorship
A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits
A business where two or more Individuals jointly own and take responsibility for the enterprise with shared capital investment and, usually, shared responsibilities
An investor of a partnership who is not directly involved in the daily running of the business
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
A legal concept that makes each partner in a partnership legally liable for all the debts of the partnership.
The owner(s) is personally and fully responsible for all losses and debts of the business
individuals or institutions that buy/own shares in a limited company
A certificate confirming part ownership of a company and entitling the shareholder to dividends and certain shareholder rights
Private limited company
A small to medium-sized business that is owned by shareholders who are often members of the same family. The company cannot sell shares to the general public
Public limited company (PLC)
A limited company, often a large business, with the legal right tom sell shares to the general public. Its share price is quoted on the national stock exchange
Initial Public Offering (IPO)
a corporation's first offer to sell shares to the public
Is the market place for trading shares of public limited companies; e.g. the New York Stock Exchange (NYSE)
external rules of conduct provided by an external source (society, religion, culture)
an individual's internal principles regarding right and wrong
Corporate Code of Ethics / Ethical code (code of conduct)
a document stating a company's commitment to ethical behavior; includes core values, rules specific to the industry', and often penalties for violations
Corporate Social Responsibility
where the organization considers the interests of society by taking responsibility for the effects their decisions and activities have on customers, employees, communities and the environment
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