Summary Vocab list of AS chapters in Cambridge International AS and A Level Business Coursebook with CD-ROM, ISBN: CIE AS BUSINESS
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Course
9609 CIE AS BUSINESS
Institution
9609 CIE AS BUSINESS
Book
Cambridge International AS and A Level Business Coursebook with CD-ROM
A list of all AS business vocabulary orders in the chapter. This material is neatly organised and highlight key words which would help boost your revision.
Business Organisation that uses resources to meet the needs of customers by providing a
product or service that they demand
Factors of Resources needed by business to produce goods or services
production Land: land itself & renewable and non-renewable resources of nature
Labour: manual and skilled labour → workforce
Capital: finance to set up & operate the business, man-made resources (capital goods)
Enterprise: managing, decision-making & coordinating role
Consumer products Bought by “final-customer” who will benefit from them and not use them to produce
(goods & services) other products
Capital and Goods bought by industry to be used in the production of other products
intermediate goods
Nature of economic Limited scarce resources to satisfy unlimited wants and needs ⇒ everyone need to
activity make choices
Problems of Problems of choice: use scarce resources to fulfil their wants
business Opportunity cost
Opportunity cost The benefit of the next most desire option that is give up
Added value The difference between the cost of purchasing raw materials and the price of the
finished good
Creating value Increasing the difference between the cost of purchasing raw materials and the price
of the finished good
Customers These are economic agents which then purchases products made by firms
Suppliers The business will get raw materials or other services from other businesses
Government The government will provide roads, school, law and order and the business will benefit
in one way or the other
Failure of business Lack of experience, lack of capital, poor location, poor management
Characteristics of Risk takers (not afraid of failure), self-motivate (passionate), innovative
entrepreneurs
Roles of the Taxes, reduce unemployment, reduce poverty level, increase GDP
business
,Entrepreneur Someone who takes the financial risk of starting and managing a new business
venture
Social enterprise Business with mainly social objectives that reinvests most its profits into benefiting
society rather than maximising returns to owners
Aims of social Profit isn’t the main aims (for operating), social objectives, provide help for the
enterprise disadvantaged groups
Triple bottom line The three objectives of social enterprises: economic, social and environmental
CHAPTER 2: BUSINESS STRUCTURE
Primary sector Firms engaged in farming, fishing, oil extraction and all other industries that extract
natural resources so that they can be used and processed by other firms
Secondary sector Firms that manufacture and process products from natural resources, including
computers, brewing, baking, clothes-making and construction
Tertiary sector Firms that provide services to consumers and other businesses, such as retailing,
transport, insurance, banking, hotels, tourism and telecommunication.
Public sector Comprises organisations accountable to and controlled by central or local
government (the state)
Private sector Comprises businesses owned and controlled by individuals or groups of individuals
Mixed economy Economic resources are owned and controlled by both private and public sectors.
Free-market Economic resources are owned largely by the private sector with very little state
economy intervention
Command economy Economic resources are owned, planned and controlled by the state
Sole trader A business in which one person provides the permanent finance and, in return, has
full control of the business and is able to keep all of the profits
Partnership A business formed by two or more people to carry on a business together, with shared
capital investment and, usually, shared responsibilities.
Limited company Business where a number of owner or shareholder pool in their resources to do a
common business and to share the profits and losses proportionally
Private limited A small to medium-sized business that is owned by shareholders who are often
company members of the same family; this company cannot sell shares to the general public
Public limited A limited company, often a large business, with the legal right to sell shares to the
company general public - share prices are quoted on the national stock exchange
, Unlimited liability Owner’s person possessions and property can be taken to pay off the debts of the
business, should it fail
Limited liability The only liability - or potential loss - a shareholder has if the company fails is the
amount invested in the company, not the total wealth of the shareholder
Share A certificate confirming part ownership of a company and entitling the shareholder
owner to dividends and certain shareholder rights
Shareholder A person or institution owning shares in a limited company
Franchise A business that uses name, logo and trading system of an existing successful
business
The franchisee uses the name, logo, marketing methods of the franchiser
Joint venture Two or more businesses agree to work closely together on a particular project and
create a separate business division to do so
Holding company A business organisation that owns and controls a number of separate businesses, but
does not unite them into one unified company.
Public corporation A business enterprise owned and controlled by the state - also known as nationalised
industry
Co-operative An association of persons united voluntarily to meet common economic, social and
cultural needs; usually members join together to purchase or sell goods that they
cannot afford individually
Privatisation Process of transforming state-owned assets to the private sector
Nationalisation Process of transforming individuals-owned assets to public sector
CHAPTER 3
Size of business No. of employees, capital employed, revenue, market share, market capitalisation,
growth
Revenue The total value of sales made by a business in a given time period
Capital employed The total value of all long-term finance invested in the business.
Market The total value of a company’s issued shares
capitalisation [current share price x total number of shares issued]
Market share Sales of the business as a proportion of total market sales
[total sales of a business/ total sales in the market X 100]
Internal growth Expansion of a business by means of opening new branches, shops or factories
(organic growth)
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