Business| The organized effort of individuals to produce and sell goods for a profit that satisfies individuals needs and wants| Product| Is a good or service that can be bought or sold| Goods| Are items that can be seen and touched.|
Services| Are things done for you by others|
Finished product| Is something that is ready for customers to buy and use| Production| Are activities that are undertaken by the business. They combine resorsed to create products that satisfy the customers needs and wants| Revenue| Is the money the business receives as payment for its products| Operating expenses| Are all the costs of a running business except the costs of the goods sold.| Profit| Is what remains after all the business expences have been deducted from sales revenue| Risk| Referse to the possibility of loss|
Income| Money received by a person for providing his/her labour e.c.t.| Wage| Is money received by workers usually on a weekly basis, for services they provide to the business| Salary| Is a FIXED amount od money paid on a regular basis to a permanent employee of a business| Shareholders| Are people who are PART owners of a company because they own a number of shares| Dividends| Is part of a business’s profit that is among shareholders| Innovation| Is an IMPROVEMENT on something already established| Invention| NEW DEVELOPMENT of something|
Choice| The act of selecting among alternatives|
Entrepreneur| Is someone who starts, operates and assumes the risk of a business venture in the hope of making a profit| Quality of life| Refers to the overall wellbeing of an indervidual, and is a combination of both material and non-material benefits| Market share| Refers to the business’s share of the total industry sales for a particular product| Transnational (multinational) corporation| Is a company that has branches in many different countries| Micro business| Have less than 5 employees|
Geographical spread| Is the presence of a business and the range of its products across a suburb, city, state or county or globe. E.g. a local business as a very small geographical spread; it serves the surrounding area| Global Business (transnational corporation TNC)| Is a large business with a home base in one country that operates in other companies e.g. a franchise macdonalds | National business| Is a business that operates within the country| E-commerce| Is they buying and selling of information and products via the internet| Industry| It consitis of businesses that are involved in similar types of production| Primary industry| Includes all those businesses in which production is directly associated with natural resources| Secondary industry| Involves taking raw material and making it into a semi-finished or a finished product| Tertiary industry| Involves performing a service for other people| Quaternary industry| Are services that involve the transfer and processing of information and knowledge| Quinary industry| Are services that have traditionally been performed in the home| Incorporated| The process that companies go through to become a separate legal entity from the owners| Sole trader| Is a business that is owned and operated by one person| Unlimited liability| Occurs when the business owner is personally responsible for all the debts of their business| Limited Liability| Is a feature of corporate ownership that limits each owner’s financial liability to the amount of money they have paid for the business shares| Partnership| Is a legal business structure that is owned and operated between two – twenty people with the same aim of making a profit| Incorporation| Is the process that companies go through to become a registered company and a separate legal entity| Proprietary (private) company| Is an incorporated business and usually has inbetween two and fifty ptivate shareholders|...