Business Studies U2-1 Key Words

Pregunta	Respuesta
Aim	Long term goal - Ie. to make a profit, to survive first year/ to expand internationally, to diversify
Objective	A short term goal, always SMART, stepping stones towards an aim, Ie. make £100 per week/ Open 12 shops in Europe in 10 years
SMART	Specific, Measurable, Achievable, Realistic, Time-scale
Retained Profit	Part of profit saved to be put back into the business
Merger	When 2 businesses join together and become 1
Diversify	Produce a range of goods or services that are different to your existing range
Demerger	When a company splits to become 2
Organic Growth	AKA. Internal Growth, achieved by increasing turnover and sales
Inputs	Resources or factors of production that the business uses to produce its products
Redundant	When members of staff are no longer needed
Acquisition	AKA. Takeover, taking control of another business by buying over 50% of shares
PLC	AKA. Public Limited Company, allowed to sell its share on the stock exchange
LTD	AKA. Private Limited Company, only allowed to sell shares to family & friends
Brand name	A well-known company or product that consumers know and trust
Royalty	A fee paid to a business (franchisor) for using its brand name
Overstretched	When a business tries to grow too quickly
Ethical objective	Business aim to 'do the right thing', even if not most profitable
Environmental objective	Aiming to protect the environment
Social costs	Financial and society costs
Social benefits	Benefits of business activity to firm and society
Inorganic Growth	AKA. External Growth, funded by bank loans and achieved through mergers and acquisitions
Vertical Integration	Integrating to DIFFERENT SECTORS, comes in forward and backward forms, Ie, from P>S or S>P
Horizontal Integration	Integration in the SAME sector, Ie T>T, for example a clothes shop buying another clothes shop

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