Accountable

Being responsible for one's actions, decisions, and results, and accepting the consequences, such as a manager being held accountable for the performance and results of their team.

Adding Value

(Added Value) the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.

Budget

A financial plan that outlines expected revenue, expenses, and investments over a specific time period, such as a company creating an annual budget to allocate resources and manage cash flow.

Business ethics,

“Doing the right thing” basing business decisions on what is morally right

Business Objectives,

Aims or targets a business sets out to achieve

Business Plan

A document setting out a business's objectives and how it will achieve them

Business Risk and

Business Risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.

Co-operative,

business, or other organization which is owned and run jointly by its members, who share the profits or benefits.

Conglomerate

integration with a business in a different industry

Corporate Objectives

Broad, high-level goals that a company aims to achieve in the long term, often related to growth or profitability, such as a corporation aiming to increase its market share by 20% over the next five years.

Corporate Social Responsibility,

businesses who take responsibility for the social and economic impact of their activity

Creating Value

Increasing the worth of a product, service, or organization through improvements or added benefits, such as a company improving its customer service, creating value for customers and increasing loyalty.

Department Objectives

Specific, short-term goals set for individual departments within a company to support the corporate objectives, such as the marketing department aiming to increase brand awareness by 15% in the next six months.

Dynamic Business Environment

None found

Entrepreneur,

Someone who invests capital, takes a risk and starts up and operates a new business venture

Ethics

Moral principles and values that guide the decision-making and behavior of individuals and organizations, such as a company adopting a code of ethics to ensure fair labor practices and environmental responsibility.

External Growth

Business expansion taking over or merging with another business )

External Stakeholders,

person or group outside the business impacted by the business activity

Factors of production

Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital.

Family Business

A business owned and operated by members of the same family, often spanning multiple generations, such as Smith's Bakery, a local business owned and managed by the Smith family since 1950.

Franchise

Buying the license to use another companies logo and sell their products.

Friendly merger

The acquisition of one company by another with the full knowledge and consent of the target company's board of directors.

Horizontal Integration

Integration with firms in the same industry and at same stage of production

Hostile takeover

The acquiring company tries to take over a target company against the wishes of the target company's management.

Incorporated Business

Business is a separate legal entity - separation between owners and the company

Internal Growth

Business expansion without taking over or merging with another business (organic growth)

Internal Stakeholders,

Individual or group inside the business impacted by the business activity (owners/shareholders, managers, employees)

Intrapreneur

An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the intrapreneur has access to the resources and capabilities of an established company.

Joint Venture

Two companies share capital and expertise on a project. Share risks and profits.

Limited Liability

Owners responsibility for company debts restricted to what they have invested

Merger

A merger is an agreement that unites two existing companies into one new company.

Mission Statement,

A mission statement is a visionary aim for a business of the direction/purpose

Multinational Business

A multinational corporation (MNC) is a company that has business operations in at least one country other than its home country. Generally, a multinational company has offices, factories, or other facilities in different countries around the world as well as a centralised headquarters which coordinates global management.

Needs

Goods or services we need to survive

Opportunity Cost,

the potential benefits a business misses out on when choosing one alternative over another.

Partnership

Two or more people join to set up a business. Shared decision making, capital invested and risk.

Primary Sector,

Using natural resources to make raw materials for business

Private Limited Company

Incorporated business with shares sold to friends and family. Limited liability.

Private Sector,

Part of the economy owned and controlled by private individuals

Public Corporation,

Government owned organisation set up to provide service to the public

Public Limited Company

Incorporated business with shares sold to general public. Limited liability.

Public Sector,

Part of the economy owned and controlled by the government

Purpose of Business Activity,

Business satisfies peoples (consumers) wants

Quaternary Sector

The quaternary sector of the economy is based upon the economic activity that is associated with either the intellectual or knowledge-based economy.

Scarcity

Not enough resources/goods or services to provide for peoples' (consumers) unlimited wants

Secondary Sector,

Manufacturing goods from raw materials

SMART Objectives

SMART Criteria: (Specific, Measurable, Achievable, Realistic and Relevant, Time-Specific) to guide in the setting of goals and objectives for better results

Social Enterprise,

private enterprise which uses profits to persue environmental or social objectives

Sole Trader

A business owned by one person who is responsible for all decisions, capital invested and risk.

Specialisation

People in business focus on what they do best

Strategic Alliance

Strategic alliances are agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

Strategy

A long-term plan or approach designed to achieve specific goals or objectives in a competitive environment, such as a company adopting a cost-leadership strategy to outperform its competitors on price.

Tactics

Short-term actions or steps taken to implement a strategy and achieve specific objectives, such as a retailer offering a limited-time promotion to boost sales and gain market share.

takeover

when a company buys more than 50% of the shares of another company and becomes the controlling owner of it – often referred to as ‘acquisition’.

Tertiary Sector,

Services to consumers and other businesses (B2B)

Triple Bottom Line,

Business objectives not just based on profit, but also social and environmental objectives

Unincorporated Business

No separation between the company and the owners in law

Unlimited Liability

Owners personal assets may be taken to pay for debts of the company.

Value Added,

Selling price - cost of bought in materials

Vertical Integration (forward and backward)

Forward - forward integration with a business in the same industry but a customer of the existing business.

Wants

Good or service people want but isn't essential for survival