Business vocabulary

• Business Entity

  is Any organisation that is established to provide goods or serviced
• Primary Industry

  The use of natural resources to produce food and raw materials. e.g. farming, fishing and mining.
• Secondary Industry(taking primary sources to make secondary)

  Industry involved in taking raw materials and making them into a finished or semi-finished product e.g. manufacturing of motor vehicles or breakfast cereals.
• Tertiary Industry

  Concerned with providing services e.g. retailing, banking, health care and transport.
• Quaternary

  The business activity involved in processing information e.g banking and real estate
• List the Industry in order

  1. Primary 2. Secondary. 3. Tertiary. 4. Quaternary. 5. Quinary
• Quinary


  The business activity involved in producing domestic services eg hotels, nursing and childcare.
• Industry

  Business that are involved in similar types of production
• Business life cycle 


  The stages of growth and development a business can experience.
• Partnership

  When 2 or more people join together in a business enterprise to share their expertise as well as the expenses and effort of operating a business (generally no more than 20 people)
• Market concentration (consumer perspective)

  The number of competitors in a particular market.
• Entrepreneur

  Someone who starts, operates and assumes the risk of a business venture in the hope of making profit.
• Incorporated Business 


  A business that is a separate legal entity, distinct from its owners. This means owners have no personal risk in the business.
• Proprietary (private) business company


  The company is not listed on the stock exchange and has the words Pty Ltd after it's name. It is owned by up to 50 shareholders.
• Public Company


  This form of company is listed on the stock exchange. Any number of people may become shareholders.
• Sole trader


  A person who owns and is individually responsible for a business (but may not run it in which it turns into a partnership).
• Risk


  The possibility of loss
• Franchise

  The purchase of the right to use a registered business name eg McDonalds .
• Diversification

  When a business acquires or merges with a business in a completely unrelated industry.
• Geographical spread

  The presences of a business and the range of its products across a suburb, city, state, country of the globe.
• Privatisation

  The process of transferring the ownership of a government business to the private sector.
• Profit

  What remains after all business expenses have been deducted from sales revenue.
• Transrational corporation


  Business that operate in more than 1 country.
• e-commerce

  The buying and selling of goods and services via the internet
• Innovation


  An improvement on something already established.
• Market share

  The business's share of the total industry sales for a particular product.
• Stakeholders (they care whats in STAKE)


  Those people who have an interest in the business or what the business does.
• Shareholders


  A person who owns shares in a company and is, therefore, a member of the company
• Business ethics

  To act responsibly and justly in all business practices.
• Globalisation

  The process that sees people, goods, money and ideas moving around the world faster and more cheaply than before.
• Ecological sustainability


  When economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs. e.g tesla
• Economic cycle


  Periods of growth and recession that occurs as a result of fluctuations in the general level of economic activity.
• Production

  Those activities are undertaken by the business that combine the resources to create products that satisfy customer's needs and wants.
• External Influences


  Economic, financial, geographic, social, legal, political, institutional, technological, competitive situation
• Internal Influences


  Business ideas/products, location, management, establishment options, sources of information and business culture as well as STAKEHOLDERS being an influence
• Stages of the business life cycle

  Establishment, growth, maturity, post-maturity (voluntary and involuntary cessation)
• When one business takes control of another business by purchasing a controlling interest in it


  Acqusition
• A declaration that a business or person is unable to pay his or her debts

  Bankruptcy
• Refers to the stages of growth and development a business can experience

  Business life cycle
• The money coming into the business in the form of cash receipts, and the money leaving the business as cash payment

  Cash flow