Business Basics + Ownership
An organization that sells goods or services to meet people's needs and wants.
What is a business?
The sector that includes service providers like hairdressers, doctors, and mechanics.
What is the Tertiary sector?
In SMART goals, the "S" stands for this word, meaning clear and detailed.
What is Specific?
The money left over after subtracting total expenses from total revenue.
What is profit?
Product, Price, Promotion, and Place make up these key marketing elements.
What are the 4 Ps (or Marketing Mix)?
A company listed on the stock exchange where anyone can buy and sell shares.
What is a public company?
The sector for services usually done at home, like cleaning, childcare, and takeaway food.
What is the Quinary sector?
A traditional management style with strict rules, a clear hierarchy, and top-down orders.
What is the Classical approach?
Total Sales minus the Cost of Goods Sold (COGS).
What is Gross Profit?
A market controlled by just one business with no competition.
What is a monopoly?
The risk where a business owner can lose their personal savings and home to pay off debts.
What is unlimited liability?
Raw materials that have undergone basic processing, such as timber or wool.
What are Simply Transformed Manufactures (STMs)?
A leadership style where managers invite team members to share in decision-making.
What is Participative (or Democratic) leadership?
The business function focused on acquiring and managing money.
What is finance?
Short-term offers like free samples, coupons, or rewards cards to boost sales.
What is sales promotion?
A non-manufacturing business that employs fewer than 5 people.
What is a micro business?
The 3 parts of the production process: Inputs, Transformation, and Outputs.
What is the production process?
A flexible management approach that changes based on the situation.
What is the Contingency approach?
A document showing all money flowing into and out of a business.
What is a Cash Flow Statement?
Any person or group affected by a business's decisions, such as staff, customers, or owners.
What is a stakeholder?
The 4 main stages a business goes through: Establishment, Growth, Maturity, and Post-Maturity.
What is the Business Life Cycle?
Advanced, highly finished products made from simpler parts, like a completed house.
What are Elaborately Transformed Manufactures (ETMs)?
An organizational structure with few management levels and fast communication.
What is a flat structure?
Money that customers owe a business for goods or services already delivered.
What are Accounts Receivable?
A pricing method where you calculate production cost and add a extra percentage for profit.
What is Cost-Plus pricing?