288640
Description
Flashcards by jadepalmer98, updated more than 1 year ago
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Created by jadepalmer98
about 11 years ago
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| Question | Answer |
| 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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