Key terms

• Mission statement


  • A qualitative statement of an organisation’s overall purpose.
• Rev


  Total income generated by sales
• Fixed cost


  Costs dont change with output in the short term eg. rent
• Variable cost


  Cost that change with output eg. Raw materials
• Profit


  Financial gain made by the business
• Loss 


  When total cost exceed over revenue
• Market share


  Percentage of total sales in a market held by one business
• Stakeholders


  Individuals or groups with an interest in the business
• Limited liability


  Owners are only liable for the money they invested in & personal assets are protected
• Unlimited liability 


  Owners are at risk of losing personal assets
• Soletrader 


  business owned & operated by 1 person
• partnership 


  Business owned by 2 Or more people
• Ltd


  Business with limited liability, shares privately owned and dont sell on stock market
• Plc


  Publicly owned, multiple shareholders, sell shares on stock market
• Not for profit


  Businesses whos aim isnt to make profit eg. Charities
• opportunity cost


  The next best alternative as a result of not affording both