Role of Business
An organisation that attempts to satisfy the needs and wants of the community by providing goods and/or services.
What is a business?
Size, ownership and finance.
What are the factors influencing choice of legal structure?
People and/or organisations that are affected by the decisions or actions of a business.
What is a stakeholder?
Establishment, growth, maturity and post-maturity.
What are the stages of the business life cycle?
Profit, employment, incomes, choice, innovation, entrepreneurship and risk, wealth and quality of life.
What are the economic and social roles of business?
Tertiary sector business that provide information services to their customers and businesses, which enable the transfer of information.
What is the quaternary sector?
Products, location, resources, management and business culture.
Indicates how much ready cash is available in a business. Current assets are listed in order of liquidity, which is how easily they can be turned into cash. Savings in the business's bank account are the most liquid as they are already cash.
What is liquidity?
Income earned from owing shares in a company. It is usually paid every three or six months, and is based on the profits the company makes.
What is a dividend?
A document that describes the nature of the business, its financial performance and possible risks that the business may face. It is issued to potential investors.
What is a prospectus?
The measure of the total value of all goods produced and services provided within a country's domestic economy in a year.
A stock-control system whereby the business is able to access stock just when it needs it.
What is the just-in-time method?
When labour is no longer needed. It may be the result of the business downsizing, restructuring or introducing technology to perform the worker's role.
What is a redundancy?
The owner's financial claim on the assets of a business. It is the original investment of the owner made into the business by contributing capital or buying shares, plus any profit the business makes. Also called proprietorship or proprietor's funds.
What is owner's equity?
A market situation whereby there are only a limited number of suppliers to the market, meaning there is less pressure on business to offer low prices.
What is an oligopoly?
When a business cannot pay all its liabilities, both current and non-current.
What is insolvency?
A system where governments, businesses, consumers and other relevant organisations interact to satisfy the needs of society.
What is the economy?
Cooperative, sole trader, partnership, private company, public company, company limited by guarantee and trust.
What are the legal structures of business?
A tax on imported goods that earns revenue for the government and increases the price of the import, making it less attractive to buy when compared to locally made alternatives.
What is a tariff?