Business Theme 1 Key Terms

• What kind of company has shares publicly traded on the stock market with limited liability?

  Public limited company
• What happens to the profits of a social enterprise?

  Reinvested into the business/community
• What type of business is owned by one person with unlimited liability?

  Sole trader
• What is it called when a business sells shares publicly on the stock exchange for the first time?

  Stock market flotation
• What is the definition of opportunity cost?

  The next best alternative forgone
• What does trade-off refer to?

  Having less of something else
• What inspires and motivates others to meet objectives?

  A leader
• What leaders take the welfare of employees into account when making decisions?

  Paternalistic leaders
• What does an entrepreneur combine to organise a business venture?

  Land, labour and capital
• What is an entrepreneur hoping for when setting up a business and taking risks?

  Profit/reward
• What is the activity of setting up a business and taking risks in the hope of making a profit called?

  Entrepreneurship
• What is the ability to recover from difficulties and try again called?

  Resilience
• What can an entrepreneur do regarding risk?

  Plan for it
• What are qualities demonstrated by an individual starting and running a business referred to as?

  Entrepreneurial characteristics
• What are factors that drive a person to start a business called?

  Entrepreneurial motive
• What is being in support of a moral belief called?

  Ethical stance
• What is it called when a business is set up from home?

  Home working
• What does independence refer to in an entrepreneurial context?

  A desire to be one’s own boss
• What is making enough profit to satisfy the needs of the business owner known as?

  Profit satisficing
• What is setting up a business and showing concern for social issues called?

  Social entrepreneurship
• What does a business objective do?

  Help achieve its aim/mission
• What is minimising costs when producing a product or service called?

  Cost efficiency
• What is a measurement of how happy a customer is with their purchase?

  Customer satisfaction
• What do facilities and benefits provided by a business to meet employee well-being refer to?

  Employee welfare
• What is a goal set by the business to help achieve its aim/mission?

  Objective
• When is profit maximisation achieved?

  Revenue and cost difference is greatest
• What is sales maximisation?

  Selling as much as possible
• What does a social objective aim to do?

  Benefit/improve the community
• What does the short-term business objective of survival aim to do?

  Keep the business running
• What does a business buy the right to trade when acquiring a franchise?

  Brand/logo/business model
• What does a business operator allow others to do in franchising?

  Trade under its name
• What is a business set up to make no more than a set level of income called?

  Lifestyle business
• What type of business ownership is owned by two or more people?

  Partnership
• What are the characteristics of a private limited company?

  Small to medium sized business
• What characterises the shares of a private limited company?

  Sold to friends, family
• What does a flexible workforce involve?

  Choice over how/when they work
• What does flexible working improve?

  Work-life balance/motivation
• What does job enlargement entail?

  More work of a similar nature
• What does job enrichment involve?

  Greater responsibility
• What does job rotation involve?

  The changing of jobs or tasks