Business Activity Key Terms

the difference between the selling price and the cost price of a good or service.

a long term plan from which business objectives are derived.

a target that must be achieved in order to realise the stated aim

a yearly gathering of a company's interested shareholders, who can vote on the company's decisions

The document which contains information on the purpose of the company.

A group of people that are voted in by the shareholders to run a business, usually a public limited company, on behalf of them.

A detailed statement of what a business intends to do during a given time. it contains financial information, sales and targets for the main area of a business.

a legal document/licence that certifies that a company or corporation has been established.

shows the interdependence of firms and how they rely on other businesses in different sectors for raw materials, components or distribution.

merger or takeover of another business involved in an unrelated business activity

a person who buys a product or uses a service in the public or private sector.

The written agreement which outlines rules for a partnership.

The decline of manufacturing within a country

When unit costs begin to rise as the business becomes too large

merger or takeover of another business involved in an unrelated business activity

A share of profits paid to shareholders

This results from there being unlimited wants but limited resources to produce the goods or services to satisfy those wants. This creates scarcity.

Where the average costs of a business fall as the business increases the amount of product that it produces, distributes and sells.

A calculated risk-taker who sets up a business in return for financial gain.

any company that has been issued a licence by a state, county or city licensing agency to conduct business.

money invested in a business

are the resources required to produce goods and services.

a business whereby the owner licences its operations—along with its products, branding, and knowledge—in exchange for a franchise fee.

an independent small business owner who operates a franchise.

sells the right to open stores and sell products or services using its brand, expertise, and intellectual property.

an economy where there is no interference from the government in the workings of the economy. Resources are owned by individuals and not the state.

Occurs between businesses in the same industry at the same stage of production.

how businesses depend on each other for survival and to operate effectively.

When two or more businesses agree to start a new business together.

another term for horizontal integration

When the business owner or owners are only responsible for business debts up to the value of their financial investment in the business.

The person at the top of a business and its organisational structure

the portion of a market controlled by a particular company or product.

The document which contains information on the name, address, and who is running the company.

Two business agree to join together to make one larger business

a formal summary of the aims and values of a company, organisation, or individual.

Includes elements of both market and planned economies.

goods or services that people need to survive

The next best alternative given up by choosing another item

when a business expands from within the company

is when the owner of a company (business) invests his own money into the business

An organisation owned by 2-20 partners

Firms in the primary sector are involved in some sort of extraction.

Business that are owned by private companies or individuals. They are run for a profit.

the transfer of a business, industry, or service from public to private ownership and control.

The amount of money made after all costs are deducted.

a company owned by invited shareholders and has limited liability. Often, these types of businesses have 'Ltd' after their business name.

a company that has at least 7 shareholders and can sell shares on the stock market and has limited liability. Often, these types of businesses have 'PLC' after their business name.

a corporation, owned and operated by a government, established for the administration of certain public programs.

organisations that are owned by central or regional authorities. they can be operated for the benefit of everyone or for one particular group.

An official in charge of the office which keeps records of registered companies. There is a registrar for Scotland and another one for England and Wales.

Managers/Directors ensure a minimum profit level to please shareholders

the lack of sufficient products to fulfil the total wants of the population.

Firms that are involved in either manufacturing or construction

A percentage or portion of a company.

the part of the capital of a company that comes from the issue of shares.

A partner who invests equity into the business but has no say in the day to day running of the business.

an organisation that exists with a clear goal to help the community but runs the organisation like a business.

A business that is owned or run by one person. They have unlimited liability

when a business is focusing on one product or a limited scope of products so as to become more efficient.

everyone within or outside an organisation who has an interest in the way the organisation operates.

a new, emerging business.

Where a business ensures a long term future in a market

one business buys control over another

a business that is involved with commercial services and activities which enable goods to get to the final consumer or direct service

When the business owner or owners are personally responsible for all the debt of the business.

A business takes over or merges with a supplier.

A business takes over or merges with another business that provides an outlet for the foods and services produced

Goods and services we do not necessarily need to survive but are pleasant to have

A takeover of one company (called the 'target company') by another (called the 'acquirer') that is accomplished without the agreement of the target company's management. Instead, the acquirer approaches the company's shareholders directly or fights to replace the management to get the takeover approved.