Business Unit 1 Flash Cards

Pregunta	Respuesta
Consumer Goods	Goods sold to the general public. -Durable goods: cars + washing machines - Non-durable goods: foods, etc. Goods that can only be used once
Capital Goods	Goods that are used by an industry to aid in the production of other goods -Eg. machines + commercial vehicles
Factors of Production	Resources needed by businesses to produce goods + services
Land	Natural resources that can be found on the planet
Labour	Physical + mental human effort used in the production process
Entrepreneurs	People who manage/organize/plan the other 3 factors of production
Business Functions/ Functional Areas	Used to refer to the different sections of a business. -Marketing, Finance, Human Resource Management, & Operations Management
Marketing	Commercial process involved in creating+ designing, promoting & selling & distributing a product or service
Finance	Management of money & credit & banking & investments
Human Resources Management	Process of determining human resource needs & then recruiting, selecting, developing motivating, evaluating, compensating & scheduling employees to achieve organizational objectives
Operations Management	Management processes used to design, supply, produce & deliver goods + services to customers
Primary Sector	The business involved in the cultivation or extraction of natural resources - Eg. Farming, mining, quarrying, fishing oil exploration + forestry
Secondary Sector	Where business activity is concerned with the construction & manufacturing of physical products -Automation & mechanization in modern societies has seen this sector decline in terms of employment
Tertiary Sector	Where business activity is concerned with the provision of services to customers. - In modern societies, it is the largest sector in terms of employment & output
Businesses	Organizations that are involved in the production of good and/or the provision of services
Division of Labour	Specialization of workers in the provision of goods and/or services by breaking a job down into the particular role/components that are repeated by some workers
Industrialization	Process experienced by a country that moves away from primary production towards manufacturing as its principal sector for national output & employment
Opportunity Cost	Cost measured in terms of the next best alternative that is foregone when a choice is being made.
Private Sector	Part of the economy under the control of private individuals & businesses rather than the government
Public Sector	Part of the economy under the control of the government
Structural Change	Shift in the relative share of national output + employment that is attributed to each business sector (primary, secondary, etc.)
Value Added	Difference between a product's price & the total cost of the inputs that went into making it
Public-Private Enterprises	W
Sole Trader	Self-employed person that runs the business on their own + has sole responsibility for its success or failure(unlimited liability)
Partnerships	Form of private sector business owned by 2-20 people(partners). They share the responsibilities + burdens of running + owning the business
Limited Liability	Restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy. Owners will lose no more than the amount of capital they put into the business
Private Limited Company (Ltd.)	Organization owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public
Public Limited Company (PLC)	Incorporated business organization that allows the general public to buy + sell shares in the company via stock exchange
Non-governmental Organization (NGO)	Any private sector organization that doesn't aim to make a profit, but they operate for the benefit of others in society
Non-Profit Organizatons (NPOs)	Organization that has aims other than making/distributing profit which is usually governed by a voluntary organization
Silent/Sleeping Partner	An investor of a partnership who isn't directly involved in the daily running of the business
Unlimited Liability	Owner is personally + fully responsible for all loses + debts of the business
Mission Statement	Declaration of an organization's overall purpose. It forms the foundation for setting the objectives of a business
Vision Statement	An organization's long-term aspirations -I.e. Where it ultimately wants to be
S.M.A.R.T. Business Objectives	Means that well set objectives have to be: S pecific M easurable A chievable R ealistic T imed.....
Strategic Objectives	Long-term objectives businesses use to achieve their overall aim

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