Topic+1+-+The+Nature+of+Business

Vocabulary list for The Nature of Business.

business - an organisation that attempts to satisfy the needs and wants of the community by providing goods and or services. inputs - resources such as labour, finance and equipment that a firm uses to create outputs. value adding - the output has greater value than each of the individual inputs. ethics - what is seen as right or wrong based on the values of management, employees and the community. downsizing - fewer staff are required to work in the business. retrenched - the staff whose services are no longer needed. entrepreneur - the risk taker in the business stakeholders - people who are affected by the decisions or actions of a business eg: shareholders, suppliers, customers market share - the % of total sales a bs has compared with it's competitors in a particular market. planning - determining the goals of a bs. Organising - the process of arranging the operation of the bs. Leading - the way in which managers interact with their staff. Controlling - the process of checking whether the bs has achieved its goals. Value chain - the links between the various activities of a bs, where each step adds value to the final good or service produced. interdependence - a bs's reliance on the various stakeholders, both within and outside the bs, that influence its operations. just-in-time method - a stock control system whereby the bs is able to access the stock just when it needs it. liquidation - occurs when all the assets of a bs are sold to generate cash to pay liabilities and creditors. bankruptcy - a legal declaration that a person or bs has more liabilties than assets. sole trader - an unincorporated bs with one owner. owners' equity - the original investment the owners made by contributing capital or buying shares, plus any profit the bs makes. unlimited liability - the owner of the bs is personally responsible (liable) for the debt incurred by the bs. partnership - an unincorporated bs with more than one owner. Private company - a bs that has limited liability and between 1 and 50 owners. limited laibility - the owners (shareholders) are not personally responsible for the debt incurred by the bs.