1. AIMS:
The long term intentions of the business. They help to form the Business Objectives

2. Anything owned by the business – cash, stock, equipment, property etc
ASSETS:
Anything owned by the business – cash, stock, equipment, property etc

3. BALANCE SHEET:
A statement showing a company’s assets and liabilities. Assets will ALWAYS equal liabilities

4. BREAK EVEN
POINT:
The point at which Total Revenue = Total Costs. The business is making neither a profit or a loss

5. The maximum amount a business can produce in a given period
CAPACITY:
The maximum amount a business can produce in a given period

6. CAPITAL:
One of the 4 factors of Production - the money or investment needed to start up a business

7. CASH FLOW:
The amount of money left in the bank each month after expenditures have been deducted from money coming in

8. CELL PRODUCTION:
A method of production where workers act in small teams, each performing part of the production process

9. People or organisations to whom the business owes money
CREDITORS:
People or organisations to whom the business owes money

10. People or organisations who owe the business money
DEBTORS:
People or organisations who owe the business money

11. The desire to own a particular product or service
DEMAND:
The desire to own a particular product or service

12. Factors of
Production:
The 4 factors that are necessary in order for business to function: land, labour, capital, enterprise

13. Fixed Costs:
Expenses that do not change in line with the amount produced. They have to be paid whether the business trades or not

14. Franchise:
A business which trades under, but is not owned by, a well known brand name

15. Gross Profit:
Sales Revenue – Cost of Sales this figure does not yet have overheads taken away from it

16. Direct Costs:
Any cost that can be directly attributed to a specific part of the production process, or a department of the business

17. Indirect Costs:
Any cost that can not be directly attributed to a specific part of the production process, or a department of the business

18. A continued rise in the prices of average goods within an economy
Inflation:
A continued rise in the prices of average goods within an economy

19. Marketing:
The function that links the business with the customer, ensuring the customer gets the right product at the right price

20. Monopoly:
A business that is the single producer of a specific product or service within a market

21. OBJECTIVES:
The medium to long term targets or a business that help give it direction and purpose

22. Oligopoly:
A situation where the market is dominated by a small number of large firms

23. Two or more people trading together as an organisation
Partnership:
Two or more people trading together as an organisation

24. A small to medium sized business that is usually owned by its founders
Private Limited
Company:
A small to medium sized business that is usually owned by its founders

25. Private Sector:
The part of the economy operated by firms who are owned by shareholders or private individuals

26. Calculated by taking costs away from revenue
Profit:
Calculated by taking costs away from revenue

27. Public Limited
Company:
A type of organisation that is owned by shareholders and has floated on the Stock Market

28. Sales Revenue:
The value of sales made within a certain period: Revenue = Quantity Sold x Price

29. Industries that produce raw materials e.g. farming, fishing & mining
Primary Sector:
Industries that produce raw materials e.g. farming, fishing & mining

30. Industries that use raw materials to manufacture goods
Secondary Sector:
Industries that use raw materials to manufacture goods

31. An business that is owned and run by a single individual
Sole Trader:
An business that is owned and run by a single individual

32. The part of the economy that provides service industries
Tertiary Sector:
The part of the economy that provides service industries