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