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Glossary

A1 Explore the Features of Different Businesses and Analyse What Makes them Successful.

Unit 1: Exploring Business

Business ownership - Individuals or groups that have legal control over a business.

Business purpose - The reason why a business was created which drives strategy.

Charitable trust - An organisation funded by donors to distribute assets in a way that benefits others.

Competitors - Their objectives are to gain market share from rival businesses so will be interested in products and practices of competition to devise strategies to outperform them.

Cooperative - A business that is owned and managed by its members

Corporate Social Responsibility - Plans that businesses incorporate into their strategies to benefit the community or the environment.

Creditors - Their objectives are for the business to pay their invoices within the agreed payment terms.

Customers - Their objectives are to have high quality products and reasonable prices.

Debtors - Their objective is to be given good payment terms to give them time to arrange payments in a way that does not negatively affect their cash flow.

Employees - Their objectives are job security, good pay and good working conditions.

External stakeholders - suppliers, lenders, competitors, debtors, creditors, customers, government agencies and departments (local, national, international), communities (local, national, international), pressure groups, interest groups

Government agencies - Their objectives are for businesses to pay their taxes and improve standards of living through providing employment opportunities and goods and services.

Government departments - A division of the government that is responsible for meeting an area of their objectives. E.g. infrastructure.

Interest groups - Groups of people who form an organisation to share specialist knowledge or influence public opinion.

Internal stakeholders - Managers, employees, owners

International business - An organisation involved in cross-border purchasing, selling, and trading of goods and services.

Large business - Organisations with more than 250 members of staff

Lenders - Their objectives are for businesses to borrow money and make regular repayments with interest.

Limited liability - A legal status in which a person can only lose the amount invested in a business if the business fails to cover its expenses. The investor will not have to give up any personal assets to repay business debts.

Local business - A business that provides goods or services to a small community, such as a town or city.

Local, national and international communities - Their objectives are for businesses operating in the area to provide benefits such as jobs and infrastructure and to reduce negative externalities such as pollution.

Managers - Their objective is to meet departmental targets and have opportunities for career progression.

Medium business - Organisations with between 50 and 249 members of staff.

Micro business - Organisations with up to nine members of staff.

National business - A company that sells goods or services to customers all over the country, either through multiple branches or online.

Not-for-profit sector - The sector of the economy made up of organisations formed for reasons other than profit, such as providing a service to society.

Oral presentations - computer projection/PowerPoint with speaker notes

Owners - Their objective is for the business to be successful, increase in value and return a profit to be distributed.

Partnership - A business owned by two or more people who share its risks and rewards.

Pressure groups - Their objectives are for businesses to act in a way that supports their cause or to stop an activity that has negative impacts on society.

Primary sector - The sector of the economy concerned with the extraction of natural resources. For example, farming, fishing, and mining.

Private limited company - A business that is owned by shareholders who cannot trade their shares on a stock market.

Private sector - The part of the economy that owned and controlled by individuals and companies rather than the government.

Public limited company - A business owned by its shareholders who can trade shares on the stock market.

Public sector - Organisations and departments owned and controlled by the government. This includes schools, hospitals and the military in most countries.

Quaternary sector - The sector of the economy concerned with intellectual pursuits and activities. Examples include research and development, information technology, and education.

Reasons for success - Clarity of vision, innovative products, innovative processes etc

Secondary sector - The sector of the economy concerned with the transformation of raw materials into finished and semi-finished goods. For example, housing construction, automobile manufacturing, and a restaurant kitchen.

Shareholder value - A company's financial worth that is distributed among its shareholders.

Small and Medium Enterprises (SMEs) - Organisations with between 10 and 249 members of staff.

Small business - Organisations with between 10 and 49 members of staff.

Sole trader - An ownership structure where just one person owns and controls a business.

Stakeholders - Individuals and groups who are impacted by a business and have a vested interest in its operation.

Suppliers - Their objective is to receive regular orders and payments on time.

Tertiary sector - The sector of the economy concerned with service provision. Examples include hairdressing, retail, transportation, financial services, and real estate.

Unlimited liability - The legal obligation of a company's owners to repay its debts, even if it means using personal assets such as their home or savings.

Voluntary organisation - Organizations established to provide services to benefit others in which workers are not compensated for their efforts.

Written presentations - financial, non-financial, formal and informal reports

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