Introduction to business 1
Businesses involved in extraction, harvesting and conversion of natural resources, e.g. fishing and oil extraction.
What is the primary sector stage of business sectors?
The document that sets out the business idea, its goals and objectives and other details of how the business will operate (such as its marketing, operations and finance.) It is often a crucial part of an attempt to raise external sources of finance.
What is the Business Plan?
Organizations that are owned and under control of the government.
What is the public sector?
Non profit social enterprises that provide voluntary support for good causes (from society's point of view) such as protection of children, animals and the natural environment.
What are charities?
Businesses involved in intellectual, knowledge based activities such as information communication technology (ICT).
What is the Quaternary sector?
Owners of an organization who manage, organize and plan the other three factors of production. They are risk takers who exploit business opportunities in return for profits.
What are entrepreneurs?
An individual who runs and owns a business on their own.
What is a sole trader?
A business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.
What is a private limited company?
These are the factors of production needed in the production process.
What are land, labor, capital and entrepreneurship?
People who behave like entrepreneurs but as an employee within a large business organization.
What are intrapreneurs?
A profit seeking business owned by two to twenty people.
What is a partnership?
The part of the economy run by private individuals and businesses, e.g. sole traders, partnerships and companies.
What is the private sector?
The sector of the economy where business activity is concerned with construction and manufacturing of products.
What is the secondary sector?
The next best alternative that is given up when making a choice.
What is opportunity cost?
A restriction on the amount of money that owners can lose if their business goes bankrupt, i.e. shareholders cannot lose more than they invest in the company.
What is limited liability?
A place for trading stocks and shares of public limited companies.
What is a stock exchange?
The practice of producing a good or service that is worth more than the cost of the resources used in the production process.
What is added value?
Business sector that specializes in providing services e.g. banking, tourism and entertainment.
What is the tertiary sector?
When a business sells all or part of its business to shareholders on a stock exchange for the first time.
What is an initial public offering (IPO)?
A feature of sole traders and partnerships who are responsible legally for all money owed to creditors, even if it means they have to sell their personal assets to pay for their debts.
What is unlimited liability?