business definitions

• Consumer good – the physical and tangible goods sold to the general public – they include durable consumer goods like cars and washing machines, and non durable consumer goods like food, drinks and sweets that can be used only once
• Consumer services – the non tangible products sold to the general public – they include hotel accommodation, insurance services and train journeys.
• Capital goods – the physical goods used by the industry to aid in production of other goods and services, such as, machines and commercial vehicles.
• Creating value – increasing the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.
• Added value – the difference between the costs of purchasing bought-in materials and the price the finished goods are sold for.
• Opportunity cost – the benefit of the next most desired option which is given up.
• Entrepreneur – someone who takes the financial risk of starting and managing a new venture.
• Social enterprise – a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners.
• Triple bottom line – the three objectives of social enterprises: economic, social and environmental. Primary sector business activity – firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms.