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Business As Level Key Terms List

This document provides key business terms organized into 5 sections. Section 1 defines consumer goods, consumer services, capital goods, creating value, added value, opportunity cost, entrepreneur, triple bottom line, and social enterprise. Section 2 defines primary, secondary, and tertiary business sectors as well as economic systems including command, public, private, mixed, and free-market economies. Section 3 defines revenue, capital employed, market capitalization, and market share. Section 4 defines mission statements, corporate social responsibility, and management by objectives. Section 5 defines stakeholders, the stakeholder concept, and corporate social responsibility.

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2K views

Business As Level Key Terms List

This document provides key business terms organized into 5 sections. Section 1 defines consumer goods, consumer services, capital goods, creating value, added value, opportunity cost, entrepreneur, triple bottom line, and social enterprise. Section 2 defines primary, secondary, and tertiary business sectors as well as economic systems including command, public, private, mixed, and free-market economies. Section 3 defines revenue, capital employed, market capitalization, and market share. Section 4 defines mission statements, corporate social responsibility, and management by objectives. Section 5 defines stakeholders, the stakeholder concept, and corporate social responsibility.

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sbang.alah
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© © All Rights Reserved
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AS LEVEL BUSINESS KEY TERMS LIST

UNIT 1
1)

1. Consumer goods: the physical and tangible goods sold to the general - they
include durable consumer goods, such as cars and washing machines, and non-
durable consumer goods, such as food, drinks and sweets that can be used only
once.
2. Consumer services: the non-tangible products sold to the general public– they
include hotel accommodation, insurance services and train journeys
3. Capital goods: the physical goods used by industry to aid in the production of
other goods and services, such as machines and commercial vehicles.
4. Creating value: increasing the difference between the cost of purchasing
bough-in materials and the price the finished goods are sold for.
5. Added value: the difference between the cost of purchasing bought-in
materials and the price the finished goods are sold for.
6. Opportunity cost: the benefit of the next most desired option which is given up.
7. Entrepreneur: someone who takes the financial risk of starting and managing a
new venture.
8. Triple bottom line: the three objectives of social enterprises: economic, social
and environmental.
9. Social enterprise: a business with mainly social objectives that reinvests most of
its profits into benefiting society rather than maximizing returns to owners.
2)

1. Primary sector business activity: firms engaged in farming, fishing, oil extraction
and all other industries that extract natural resources so that they can be used
and processed by other firms.
2. Secondary sector business activity: firms that manufacture and process
products from natural resources, including computers, brewing, baking, clothes-
making and construction.
3. Tertiary sector business activity: firms that provide services to consumers and
other businesses, such as retailing, transport, insurance, banking, hotels, tourism
and telecommunications.
4. Command economy: economic resources are owned, planned and controlled
by the state.
5. Public sector: comprises organizations accountable to and controlled by central
or local government (the state).
6. Private sector: comprises businesses owned and controlled by individuals or
groups of individuals.
7. Mixed economy: economic resources are owned and controlled by both private
and public sectors.
8. Free-market economy: economic resources are owned largely by the private
sector with very little state intervention.
9. Sole trader: a business in which one person provides the permanent finance
and, in return, has full control of the business and is able to keep all of the profits.
10. Partnership: a business formed by two or more people to carry on a business
together, with shared capital investment and, usually, shared responsibilities.
11. Limited liability: the only ability - or potential loss - a shareholder has f the
company fails is the amount invested in the company, not the total wealth of the
shareholder.
12. Private limited company: a small to medium-sized business that is owned by
shareholders who are often members of the same family; this company cannot
sell shares to the general public.
13. Share: a certificate confirming part ownership of a company and entitling the
shareholder owner to dividends and certain shareholder rights.
14. Shareholder: a person or institution owning shares in a limited company.
15. Public limited company: a limited company, often a large business, with the
legal right to sell shares to the general public-share prices are quoted on the
national stock exchange.
16. Memorandum of Association: this states the name of the company, the
address of the head office through which it can be contacted, the maximum share
capital for which the company seeks authorization and the declared aims of the
business.
17. Articles of Association: this document covers the internal workings and control
of the business - for example, the names of directors and the procedures to be
followed at meetings will be detailed.
18. Franchise: a business that uses the name, logo and trading systems of an
existing successful business.
19. Joint venture: two or more businesses agree to work closely together on a
particular project and create a separate business division to do so.
20. Holding company: a business organization that owns and controls a number of
separate businesses, but does not unite them into one unified company.
21. Public corporation: a business enterprise owned and controlled by the state
also known as nationalised industry.
3)

1.Revenue: total value of sales made by a business in a given time


period.
2. Capital employed: the total value of all long-term finance invested in
the business.
3. Market capitalisation: the total value of a company’s issued shares.
4. Market share: sales of the business as a proportion of total market
sales.
5. Internal growth: expansion of a business by means of opening new
branches, shops or factories (also known as organic growth)
4)

1. Mission statement: a statement of the business’s core aims, phrased


in a way to motivate employees and to stimulate interest by outside
groups.
2. Corporate social responsibility: this concept applies to those
businesses that consider the interests of society by activities on
customers, employees, communities and the taking responsibility for
the impact of their decisions and environment.
3. Management by objectives: a method of coordinating and motivating
all staff in an organisation by dividing its overall aim into specific targets
for each department, manager and employee.
4. Ethical code (code of conduct): a document detailing a company’s
rules and guidelines on staff behaviour that must be followed by all
employees.
5)

1.Stakeholders: people or groups of people who can be affected by –


and therefore have an interest in – any action by an organisation.
2. Stakeholder concept: the view that businesses and their managers
have responsibilities to a wide range of groups, not just shareholders.
3. Corporate social responsibility: the concept that society in their
activities and decisions, beyond the legal accepts that businesses
should consider the interests of obligations that they have.
UNIT 2
1)

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