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BUSINESS MANAGEMENT UNITS 3&4 CHAPTER 1 GLOSSARY (Assets (items of…
BUSINESS MANAGEMENT UNITS 3&4 CHAPTER 1 GLOSSARY
Assets
items of value owned by the business
Business
any activity conducted by an individual or individuals to produce and sell goods and services that satisfy the needs of society, as well as making a profit
Competitive Advantage
occurs when a firm, industry or economy has a lower cost price structure than its rivals. In this situation, goods and services can be sold more cheaply, undercutting competitors, and expanding domestic and foreign sales. The concept can also be extended to product quality range and flexibility in adapting to new trends in the market.
Competitors
other businesses or individuals who offer rival, or competing, goods or services to the ones offered by the business
Corporate Social Responsibility
the obligations a business has over and above its legal responsibilities to the well being of employees and customers, shareholders and the community as well as the environment
Customers
the people who purchase goods and services from the business, expecting high quality at competitive prices
Directors
the people who have overall responsibility for managing the company’s business activities
Effectiveness
the degree to which a business has achieved its stated objectives
Efficiency
how well a business uses resources to achieve objectives
Employees
the people who work for the business and who expect to be paid fairly, trained properly and treated ethically in return for their contribution to production
Government
the group of people with the authority to govern a community. In Australia, this exists at three levels (federal, state and local).
Government Business Enterprise
a type of business that is government owned and operated
Incorporation
the process that businesses go through to become a registered company and a separate legal entity from the owner/shareholder
Industry
the classification of groups of businesses related to the particular good or service they produce
Interest Groups
organisations who attempt to directly influence or persuade a business to adopt or change particular activities, processes or policies
Key Performance Indicators
specific criteria used to measure the efficiency and/or effectiveness of the business’s performance
Limited Liability
the shareholders in a company will not be held personally responsible for the debts of that business
Management
the people who have the responsibility for successfully achieving the objectives of the business
Market Share
the proportion of total sales in a given market or industry that is controlled or held by a business, calculated for a specific period of time
Mission Statement
expresses why the business exists, its purpose and how it will operate
Objective
a desired outcome or specific result that a business intends to achieve
Partnership
a business owned by two or more people
Stakeholder
groups and individuals who interact with the business and have a vested interest in its activities
Profit
what is left after business expenses have been deducted from money earned from sales (revenue)
Public Listed Company
an incorporated business with a minimum of five shareholders, and whose shares are openly traded on the Australian Securities Exchange
Revenue
the income that a business earns from the sale of goods and services to customers
Shareholders
the owners of a company
Silent or Sleeping Partner
contributes financially to the business but takes no part in the running of the business
Social Enterprise
a business with the objective of fulfilling a social need
Sole Trader
a business owned and operated by one person
Strategies
the actions that a business takes to achieve specific objectives
Suppliers
businesses or individuals who supply materials and other resources to a business so that it can conduct its operations
Triple Bottom Line
the economic, social and environmental performance of a business
unlimited Liability
the business owner is personally responsible for all the debts of his or her business
Vision Statement
states what the business aspires to become
Private Limited Company
an incorporated business that has a minimum of one shareholder and a maximum of 50 non-employee shareholders, and whose shares are offered only to those people whom the business wishes to have as part owners