AS 9609

Cards (246)

  • 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
  • Business activity sectors
    • Primary sector (farming, fishing, oil extraction)
    • Secondary sector (manufacturing and processing)
    • Tertiary sector (services)
  • Public sector
    Organisations accountable to and controlled by the central or local government
  • Private sector
    Businesses owned and controlled by individuals or groups of individuals
  • Mixed economy
    Economic resources are owned and controlled by both private and public sector
  • Free-market economy
    Economic resources are owned largely by the private sector with little state intervention
  • Command economy

    Economic resources are owned, planned and controlled by the state
  • Sole trader
    A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits
  • Partnership
    A business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities
  • Limited liability
    The only liability-or potential loss-a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder
  • Private limited company
    A small to medium-sized business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public
  • Share
    A certificate confirming part ownership of a company and entitling the shareholder owner to dividends and certain shareholder rights
  • Shareholder
    A person or institution owning shares in a limited company
  • Public limited company
    A limited company, often a large business, with the legal right to sell shares to the general public-share prices are quoted on the national stock exchange
  • Memorandum of association
    This states the name of the company, the address of the head office through which it can be contacted, the maximum share capital for which the company seeks authorisation and the declared aims of the business
  • Articles of association
    This document cover the internal working and control of the business-for example, the names of the directors and the procedures to be followed at meetings will be detailed
  • Franchise
    A business that uses the name, logo and trading systems of an existing successful business
  • Joint venture
    Two or more businesses agree to work closely together on a particular project and create a separate business division to do so
  • Holding company
    A business organisation that owns and controls a number of separate businesses, but does not unite them into one unified company
  • Public corporation
    A business enterprise owned and controlled by the state-also known as nationalised industry
  • Revenue
    Total value of sales made by a business in a given time period
  • Capital employed

    The total value of all the long term finance invested in the business
  • Market capitalisation
    The total value of a company's issued shares
  • Market share
    Sales of the business as a proportion of total market sales
  • Internal growth
    Expansion of a business by means of opening new branches, shops or factories (also known as organic growth)
  • Mission statement
    A statement of the business's core aims, phrased in a way to motivate employees and to stimulate interest by outside groups
  • Corporate social responsibility
    This concept applies to those businesses that consider the interests of the society by taking responsibility for their impact of their decisions of customers, employees, communities and the environment
  • Management by objectives
    A method of coordinating and motivating all staff in an organisation by dividing its overall aim into specific targets for each department, manager and employee
  • Ethical code (code of conduct)

    A document detailing a company's rules and guidelines on staff behaviour that must be followed by all employees
  • Stakeholders
    People or groups of people who can be affected by – and therefore have an interest in – any action by an organisation
  • Shareholder concept
    The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders
  • Corporate social responsibility
    The concept that accesses that business should consider the interests of society in their activities and decisions, beyond the legal obligations that they have