Definitions

• E-commerce- the use of the internet to buy and sell goods and services.
• Public limited company- a company that has shares that can be sold to the public.
• Variable costs- Costs that vary directly with the level of output e.g. wages
• Partnership- A business owned by two or more people who share the profits and losses.
• Interest rates- The amount of interest paid on a loan or the rate at which interest is charged on a savings account.
• Stakeholders- people who have an interest in the business and its success.
• Entrepreneur- A person who organizes and manages a business or businesses.
• Consumer law- Consumers have the right to be protected from unfair and deceptive practices.
• Objective-A result you are aiming to achieve in order to accomplish long-term visions.
• Takeover(growth)- a company buys another company to increase its size and profit
• Economic change- the economy is changing and the way people live and work is changing
• Business plan- a document that describes your business idea and sets out how it will operate
• Market research- finding out what customers want, how they behave and why they buy certain products/services
• Risk assessment- identifying potential risks and hazards associated with running a business
• Product development- developing new products or improving existing ones
• Market research- finding out about customers, competitors and markets
• Financial planning- working out what money you need to start up and run your business
• SWOT analysis- assessing strengths, weaknesses, opportunities, and threats of a business or product
• Competitor analysis- studying other businesses to find out their strengths and weaknesses
• private limited company- a company that has limited liability and is owned by shareholders
• opportunity cost- the cost of the next best alternative that is foregone when a decision is made
• Diseconomy of scale- as a business grows, the cost of production per unit increases.
• Exchange rate- The price of one currency in terms of another currency.
• Business enviroment- The external environment of a business is the external factors that affect the business.
• costs- the cost of the product or service, including the cost of raw materials and labour
• Merger- A combination of two or more businesses, usually in the form of a takeover.
• liability- the obligation to pay a debt or to perform a duty, especially one that is enforceable by legal action
• monoply- a single firm that has a large market share and is able to control prices
• trade union- a group of workers who join together to protect their rights and interests
• consumer spending- the amount of money that households spend on goods and services, which is the largest part of the economy
• P - political

  E- economic

  S- social

  T- technological

  L- legal

  E- enviromental

  C- competition