real world

• an aim is the intention to reach a goal
• an objective is a specific target that is set for a business to achieve
• tariff is a tax on imported goods
• sole trader is someone who sets up a business on their own
• unlimited liability is where the personal possessions of the owners of a business are at risk if there are any problems
• a partnership is where 2 or more people join together in a business enterprise
• a company is a business that has its own legal identity
• private limited company is a business that has limited liability and is owned by shareholders. shares are not available to the public
• a public limited company is a company that has shares that can be sold to the public. owned by shareholders which have limited liability
• a not for profit organisation is an organisation set up to achieve objectives other than profit
• a business plan is a document that outlines the businesses objectives, how it will achieve them and how it will be financed
• revenue is the amount of money received from selling goods and services, or from renting out property
• a fixed cost is a cost that does not change with the level of output produced.
• a variabale cost is a cost that can be changed in the future, such as the cost of raw materials
• a total cost is the sum of all the costs of producing a good or service, including fixed costs and variable costs
• a franchise is a business that is owned by a franchisor and is sold to a franchisee
• ecommerce is the buying and selling of goods and services over the internet
• outsourcing is when a business contracts with another company to provide a service or product
• economies of scale is when a business can produce more of a product with fewer resources
• external growth is the growth of the business through acquisition or merger with another business
• a good is a tangible object
• a service is an intangible product
• an entrepreneur is a person who takes the risk of setting up a new business
• opportunity cost is the cost of missing out on the next best alternative
• a social enterprise is a business that is set up to achieve a social or environmental goal
• the primary sector is the production of raw materials
• the secondary sector is the manufacturing of goods and services, such as the production of cars, clothing, and food
• the tertiary sector is the service sector, which includes businesses that provide services to other businesses and to the public