front 1 Needs | back 1 Goods or services we need to survive |
front 2 Opportunity Cost | back 2 the potential benefits a business misses out on when choosing one alternative over another |
front 3 Purpose of Business Activity | back 3 Business satisfies peoples (consumers) wants |
front 4 Scarcity | back 4 Not enough resources, goods or services to provide for peoples’ (consumers) unlimited wants |
front 5 Specialisation | back 5 People in business focus on what they do best |
front 6 Value Added | back 6 Selling price - cost of bought-in materials |
front 7 Wants | back 7 Good or service people want but aren’t essential for survival |
front 8 Primary Sector | back 8 Using natural resources to make raw materials for business Private Sector, Part of the economy owned and controlled by private individuals Secondary Sector, Manufacturing goods from raw materials |
front 9 Private Sector | back 9 Part of the economy owned and controlled by private individuals |
front 10 Secondary Sector | back 10 Manufacturing goods from raw materials |
front 11 Tertiary Sector | back 11 A business that provides services to consumers and other businesses |
front 12 Business Plan | back 12 A document setting out a businesses objectives and how it will achieve them |
front 13 Entrepreneur | back 13 Someone who invests capital, takes a risk and starts up and operates a new business venture |
front 14 External Growth | back 14 Business expansion, taking over or merging with another business |
front 15 Grant | back 15 Capital given by a government to a business to assist with start-up costs, innovation or business growth |
front 16 Internal Growth | back 16 Business expansion without taking over or merging with another business (organic growth) |
front 17 Franchise | back 17 Buying the license to use another companies logo and sell their products |
front 18 Incorporated Business | back 18 Business is a separate legal entity - separation between owners and the company |
front 19 Joint Venture | back 19 Two companies share capital and expertise on a project they share risks and profits |
front 20 Limited Liability | back 20 Owners responsibility for company debts restricted to what they have invested in the business |
front 21 Partnership | back 21 Two or more people join to set up a business. Shared decision making, capital invested and risk |
front 22 Private Limited Company | back 22 Incorporated business with shares sold to friends and family |
front 23 Public Corporation | back 23 Government-owned organisation set up to provide service to the public Public Limited Company, Incorporated business with shares sold to the general public, limited liability |
front 24 Public Limited Company | back 24 Incorporated business with shares sold to the general public, limited liability |
front 25 Public Sector | back 25 Part of the economy owned and controlled by the government |
front 26 Sole Trader | back 26 A business owned by one person who is responsible for all decisions, capital invested and risk |
front 27 Unincorporated Business | back 27 No separation between the company and the owners in law |
front 28 Business Objectives | back 28 Aims or targets a business sets out to achieve |
front 29 External Stakeholders | back 29 Individual or group outside the business impacted by the business activity (customers, suppliers, government, local community) |
front 30 Internal Stakeholders | back 30 Individual or group inside the business impacted by the business activity (owners/shareholders, managers, employees) |
front 31 Social Enterprise | back 31 A private enterprise which uses profits to pursue environmental or social objectives |
front 32 Unlimited Liability | back 32 Owners personal assets may be taken to pay for debts of the company |