IB Business 1.1-1.4 Keywords
Terms in this set (54)
Organizations that are involved in the production of goods and/or the provision of services.
All non-natural resources used in the production process.
Division of Labor
The specialization of workers in the provision of goods and/or services by breaking a job down into particular roles or components that are repeated by the same workers.
People who manage, organize and plan the other three factors of production. They are risk takers who exploit business opportunities for profit.
Factors of production
The inputs (or resources) necessary for the production process: land, labor, capital, and enterprise.
The term used to refer to the different sections of a business. Usually are marketing, production, finance and human resources.
The process experienced by a country that moves away from primary production towards manufacturing as its principal sector for national output and employment.
The physical and mental human effort used in the production process.
Natural resources that can be found on the planet.
Cost measured in terms of the next best alternative that is forgone when a choice is being made.
Businesses involved in the cultivation or extraction of natural resources
The part of the economy under the control of private individuals and businesses, rather than the government
The Part of the economy under the control of the government.
The section of the economy where business activity is concerned with the construction and manufacturing of physical products.
A shift in the relative share of national output and employment that is attributed to each business sector.
The section of the economy where business activity is concerned with the provision of services to customers. It is the largest sector in terms of employment and output in modern society
The difference between a product's price and the total cost of inputs that went into making it. It is the extra worth created in the production process.
Articles of Association
The name given to the document that sets out the internal organization and rules of a limited company. It is one of the documents needed to set up a company.
Certificate of Incorporation
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. Possession of this certificate then allows the company to start trading.
Not-for-profit organizations that are established to support good causes, from society's point of view.
Refers to a business that is 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.
Means that there is a legal difference between the owners of a company and the company as the owners are protected by limited liability.
A restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy. The owners will lose no more than the amount of capital that they put into the business.
Memorandum of Association
The name of one of the leal documents required to create an incorporated company. The memorandum will include the basic information of the organization such as: the name and address of the company, its objectives and details of its shares capital.
Refers to any private sector organization that does not primarily aim to make a profit. Instead, they operate for the benefit of others in society.
A form 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 organization owned by shareholders with limited liability but whose shares cannot be bought or sold to the general public.
Public Limited Company
An incorporated business organization that allows the general public to buy and sell shares in the company via a stock exchange.
The market place for trading stocks and shares of public limited companies.
Silent Partner or Sleeping Partner
An investor of a partnership who is not directly involved in the daily running of the business.
Refers to a self-employed person. He or she that runs the business and has sole responsibility for its success or failure.
A feature of sole traders and ordinary partners who are legally liable for all monies owed to their creditors, even if this means that they have to sell their personal possessions to pay for this.
The difference between a product's price and the total cost of inputs that went into making it. it is the created worth in the production process.
The long-term goals of a business, often expressed in the firm's mission statement. They are a general statement of a firm's purpose or intentions and tend to be qualitative in nature.
Corporate social responsibility
Refers to the consideration of ethical and environmental issues relating to business activity. A business that adopts CSR will act morally towards its various stakeholder groups.
The moral values that determine and affect business behavior and decision-making.
Refers to the declaration of an organization's overall purpose. It forms the foundation for setting the objectives of a business.
The relatively shorter term targets of an organization.
An independent assessment of how an organization's actions affect society.
A business being conscientiously concerned about the well-being of the general public as a whole.
The various methods that businesses can use in an attempt to achieve their mission or vision. Strategies then form long-term plans for the whole organizations.
The short-term methods that firms can use to achieve their objectives.
An organization's long-term aspirations.
Situations where people have disagreements on certain matters due to differences in their opinions.
The senior members of staff who have been elected by shareholders of a company to run the business on their behalf.
Stakeholders of a business who do not form part of the organization but have a direct interest or involvement in the actions of the actions of the organization.
Stakeholders of a business who are members of the organization.
The people responsible for the day to day running of a business or a department within a business.
A type of special interest group which consists of individuals with a common concern who seek to place demands on organizations to act in a particular way or to influence a change in their behavior.
Also known as stockholders, are the people who own shares in a private or public limited company.
Special Interest Group
Refers to the organization of people who have a common interest and collectively act to achieve that interest by swaying public opinion and support, lobbying government policy and influencing business behavior.
An analytical tool developed by Johnson and Scholes which places different stakeholder groups into quadrants depending on their relative levels of power and interest in an organization.
Individuals or organizations that have a direct interest in the activities and performance of a business.