What is a Business?
Physical products like food, clothing, furniture, cars and smartphones. Intangibles like getting a haircut or getting your teeth cleaned at the dentist.
What are goods and services?
Businesses in this section of the economy are run and owned by the government in order to provide essential services for society as a whole, e.g., education and healthcare services.
What is the public sector?
This is an organization’s decisions and actions that impact society in a positive way.
What is CSR?
These are the firm’s clients, individuals and other businesses, who purchase the organization’s goods and/or services. Their interests include competitive prices, fit-for-purpose products and overall value for money.
What are customers?
This form of external growth involves two or more companies agreeing to form a single, larger company thereby benefiting from operating on a larger scale.
What is a merger?
Business activity that involves providing services to customers.
What is the tertiary sector?
A type of non-profit organization (NPO) operating in the private sector of the economy for the benefit of others in society (rather than for shareholders).
What is an NGO?
These are moral guidelines or codes of practice which govern good organizational behaviour.
What are ethics?
The people or organizations that have shares in a company. Their interest is financial, i.e., regular dividends and a higher share price.
What are shareholders?
Refers to the process of greater integration and interdependence of businesses and economies throughout the world, largely contributed by the growth and evolution of multinational companies across the globe.
What is globalization?
Business activity involved with manufacturing or construction.
What is the secondary sector?
A joint-stock company owned by shareholders. The shares in a publicly held company can be bought and sold by the general public, without prior approval of existing owners.
What is a publicly held company?
This is the positive difference between a firm's sales revenue and its total costs of production, per time period.
What is profit?
An organization that aims to protect the interests of its worker members, focuses on the terms and conditions of employment, such as workers’ pay and benefits.
What is a Labor (trade) union?
This growth strategy involves the right to trade using another company’s products, brand name and corporate logo.
What is a franchise?
Land, labor, capital, entrepreneurship
What are the four factors of production?
A legally binding contract that all joint owners of a partnership sign, stating the purpose of the business, the formal rights of the partners, and how any profits should be split.
What is a deed of partnership?
The long-term goals of a business, which could include profit maximization, growth, and increased market share.
What are strategic objectives?
The individuals, organizations, or groups with a vested interest in the actions and outcomes of a specific organization. They are directly affected by the performance of the business.
What are stakeholders?
This form of external growth occurs when two or more businesses in unrelated industries integrate through a merger, acquisition, or takeover.
What is a conglomerate?
Human Resources, Finance & Accounts, Marketing, Operations Management
What are the four functions/departments in large organizations?
This is a business owned by shareholders with limited liability, but the shares cannot be traded on a public Stock Exchange.
What is a privately held company?
The relatively short-term and specific goals of a business. These targets are used to guide the daily functioning of the organization.
What are tactical objectives?
Individuals who come together or organizations that are set up for a common concern. They aim to influence government and public opinion in order to create the desired social change.
What are pressure groups?
These are cost-saving benefits enjoyed by a business as it increases the size of its operations, i.e. lower average costs (the cost per unit).
What are economies of scale?