Vocab ch1
A business organisation that has its headquaters in one country, but with operating branches, factories and assembly plants in other countries.
What is a multinational business?
Individuals or groups who can be affected by, and have an intrest in, any action taken by an organisation.
What are stakeholders?
Sales of the business as a proportion of total market sales.
What is Market Share?
Knowledge, Application, Analysis and Evaluation.
What are the assesment objectives?
The four broad types of business activity.
What are the primary, secondar, tertiary, quaternary sectors?
A business employee who takes direct responsibility for turning an idea into a profitable new product or business venture.
What is an intrpreneur?
The only liability- or potential loss - a shareholder has, if the company fails, is the amount invested in the company, not the toatol wealth of the shareholder.
What is limited liablility?
The total value of all long-term finance invested in the business.
What is Capital Employed?
A example and definition.
What is Application?
Business providing informational services.
What is the quaternary sector?
The resources needed by business to produce goods or services.
What are factors of production?
Business owners have full legal responsibility for debts of the business.
What is unlimited liability?
Business expansion achieved by integrating with another business by either merger or takeover.
What is External Growth?
One should act like a consultant when answering these types of questions.
Evaluation
Extract natural resources from the earth.
What is the primary sector?
The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles?
What are captial goods?
Economic resources are owned largely by the private sector with very little state intervention.
What is a free-market system?
Literally means that 'the whole is greater than the sum of parts' - it is often assumed that the new business will be more successful than the original seperate businesses.
What is Synergy?
The definition should be included. These are typically 1 or 2 mark questions.
Knowledge
A manufactoring company processing wood into fruniture.
The next most desired option that is given up.
What are opportunity cost?
An offer to the public to buy shares in a public limited company.
What is an IPO (initial public offering)?
Agreement between two organisations to commit resources to achieving a specific objective while remaining independent.
What are Strategic alliances?
The pro/cons, advantages/disadvantages, and the impact on stakeholders.
What is Analysis ?
A company transporting wood from a process site on a forest and moved to a carpenter.
What is an exapmle of a busines in the tertiary sector?