Chapter 1
a business employee who takes direct responsibility for turning an idea into a profitable new product or business venture
intrapreneur
a person or institution owning shares in a limited company
shareholder
a brief statement of the business's core aims, phrased in a way to motivate employees and to stimulate interest from outside groups
Mission Statement
an organization of working people with the objective of improving the pay and working conditions of its members and providing them with support and legal services
Trade Unions
firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so they can be used and processed
primary sector
the next most desired option that is given up
opportunity cost
a company whose shares are traded on a stock exchange and can be bought and sold by the public. In the United States, these are called corporations and we use "inc" for incorporated
public limited company
a stated measurable target that a business plans to achieve
Business Objective
the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders (also known as stakeholder theory)
stakeholder concept
firms providing services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels and tourism
tertiary sector
a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts
Business Plan
the only liability-or potential loss- a shareholder has, if the company fails, is the amount invested in the company, not the total wealth of the shareholder
Limited Liability
the total value of sales made during the trading period = selling price x quantity sold
Revenue
individuals or groups who are separate from the business but are affected by or are interested in its operations
external stakeholders
firms that manufacture and process products from natural resources, including computers, brewing, baking, clothes-making and construction
secondary sector
an individual who has the idea for a new business, starts it up and carries most of the risks but benefits from the rewards
entrepreneur
a business enterprise owned and controlled by the state- also known as a nationalised industry
public corporation
a document detailing a company's rules and guidelines on staff behavior that must be followed by all employees
Ethical Code
individuals or groups who work within the business, or own it, and are affected by the operations of the business
internal stakeholders
businesses providing information services, such as computing, web design, ICT (information and communication technologies), management consultancy and R&D (research and development, particularly in scientific fields)
quaternary sector
the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles
Capital Goods
businesses owned and controlled by individuals or groups of individuals
Private Sector
Number of Employees, Revenue, Capital, Market capitalization, Market Share
Ways to Measure a business size
owners, customers, suppliers, employees, local communities, government and government agencies, lenders are all what
Stakeholders
What are the 5 SMART goals
specific, measurable, achievable, realistic and time-limited