1.1 What is a business?
The inputs used by a business to produce goods and services: capital, enterprise, land & labour (CELL).
What are the four factors of production?
This type of business is owned and operated by a single individual who has unlimited liability
What is a sole trader (sole proprietor)?
This is the concept of meeting the needs of the present without compromising the ability of future generations to meet theirs
What is sustainability?
Those who operate within the organization and thus they tend to have a direct impact on the success of the organization. Examples include: employees, managers, directors.
What is an internal stakeholder?
When average costs fall because a business increases its scale of production
What are economies of scale?
This type of business organization is owned by shareholders and its shares are typically traded on a stock exchange.
What is a publicly held company (plc)?
This legal structure allows two or more individuals to share profits, responsibilities, and risks but does not protect their personal assets from business liabilities
What is a partnership?
This statement communicates a business's purpose and core activities, often aimed at stakeholders like employees and customers
What is a mission statement?
This term refers to a situation where two or more stakeholder groups have opposing objectives that cannot be satisfied simultaneously
What is stakeholder conflict?
This type of growth happens when a business expands using its own resources, such as opening new stores using its own staff and capital.
What is internal growth?
These government-owned organizations focus on addressing basic human needs, such as water, electricity, and healthcare, often considered vital for society.
What are public sector organizations?
This set of business policies ensures that a company considers the needs of society and the environment, balancing economic, social and environmental sustainability.
What is corporate social responsibility (CSR)?
This type of statement outlines what a business aims to achieve in the future and serves as its long-term inspiration
What is a vision statement?
A business tool that looks at how organizations might prioritize the needs of different stakeholder groups, depending on the amount of interest and the amount of influence that the stakeholder group is perceived to have
What is a stakeholder map?
When a business grows too large and experiences rising average costs, caused by things such as miscommunication or poor control over staff.
What are diseconomies of scale?
This is calculated as: selling price - raw material costs
What is added value (value added)?
This theory describes ‘3 P's of sustainability’. Economic (p..........), social (p..........) and environmental (p.......).
What is people, planet and profit?
These short-term objectives focus on immediate, practical actions that help achieve broader goals
What are tactical objectives?
Conflicts may arise because this internal stakeholder group wants higher wages, while shareholders seek higher dividends
What are employees?
Mergers, acquisitions, and joint ventures are all examples of this type of business expansion. Also known as external growth.
What is inorganic growth?
This sector of the economy focuses on activities involving the generation and sharing of knowledge and information, often requiring highly specialized expertise. Examples include IT services, data mining, and consultancy
What is the quaternary sector?
This type of non-profit organization operates in the private sector but often collaborates with governments to deliver services that benefit the public, such as in healthcare or education. 'Doctors Without Borders' are an example.
What is a non-governmental organization (NGO)?
These models are designed to turn all the waste that businesses and consumers produce into valuable and productive resources to be used again
What are circular business models?
The Ansoff Matrix identifies these four strategies to help businesses assess risks and opportunities for growth
What are market penetration, product development, market development, and diversification?
Larger businesses can afford specialized machinery, robotics, and technology that leads to improvements in efficiency and productivity and therefore lower average costs of production
What are technical economies of scale?