business concepts IGCSE商课定义汇总

1、Unit 1 The purpose of business activityA NEED is a good or service essential for living.A WANT is a good or service which people would like to have, but which is not essential for living, Peoples wants are unlimited.The ECONOMIC PROBLEM results from there being unlimited wants but limited resources

2、to produce the goods and services to satisfy those wants. This creates scarcity.FACTORS OF PRODUCTION are those resources needed to produce goods or services. There are four factors of production: land labour enterprise capital. They are in limited supply.SCARCITY is the lack of sufficient products

3、to fulfil the total wants of the population.OPPORTUNITY COST is the next best alternative given up by choosing another item.DIVISION OF LABOUR is when the production process is slipt up into different tasks and each worker performs one of these tasks. It is also known as SPECIALISATION.BUSINESS comb

4、ines factors of production to make products which satisfy peoples wants.BUSINESS OBJECIVES are the aims or targets that a business works towards.1. To make a profit. 2. To increase added value 3. To expand the business. 4. To achieve business survival 5.To provide a service to the community.VALUE AD

5、DED is the difference between selling price of a product or service and the cost of bought in materials and components.A STAKEHOLDER is any person or group with a direct interest in the performance of a business.Society Manager Suppliers Government Creditor Owner Workers CustomersUnit 2 Type of busi

6、ness activityThe PRIMARY SECTOR of industry extracts and uses the natural resources of the earth.The SECONDARY SECTOR of industry manufactures goods using the raw materials provided by the primary sector.The TERTIARY SECTOR of industry provides services to consumers and the other sectors of industry

7、.DE-INDUSRIALISATION occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country.A FREE MARKET ECONOMY has no government control over factors of production. Its also known as a MARKET ECONOMY.A MONOPOLY is a business which controls all of the mark

8、et for a product.A COMMAND ECONOMY does not have a private sector as all resources are owned by the state.A MIXED ECONOMY has both a private sector and a public sector.CAPITAL is the money invested into a business by the owners.PROFIT is the surplus after total costs have been subtracted from sales

9、revenue.INTERNAL GROWTH occurs when a business expands its existing operations.EXTERNAL GROWTH is when a business takes over or merges with another business. It is often called INTEGRATION as one firm together to make one business.A MERGER is when the owners of two businesses agree to join their fir

10、ms together to make one business.A TAKEOVER or ACQUISITION is when one business buys out the owners of another business which then becomes part of the predator business.HORIZONTAL INTERGRETION is when one firm merges with or takes over another one in the same industry at the same stage of production

11、.VERTICAL INTERGRETRTION is when one firm merges with or takes over another one in the same industry but different stages of production. Vertical integration can be FORWARD or BACKWARD.CONGLOMERATE INTEGRATION is when one firm merges with or takes over a firm in a completely different industry. This

12、 is also known as DIVERSIFICATION.Unit 3 Forms of business organizationLIMITED LIABILITY means that the owners of company- shareholders cannot be held responsible for the debts of the company they own. Their liability is limited to the investment they made in buying the shares.UNLIMITED LIABILITY me

13、ans if business fails to reply business debts. The creditor will force the owner to sell all his own procession to pay the debts. A PARTNERSHIP AGREEMENT is the written and legal agreement between business partners. It is not essential for partners to have such an agreement but it is always recommen

14、ded.An UNINCORPORATED BUSINESS is one that does not have separate legal identity. Sole traders and partnerships are unincorporated business.SHAREHOLDERS are the owners of a limited company. They buy shares which represent part ownership of a company.A PROSPECTUS is a detailed document issued by the

15、directors of a company when they are converting it to public limited company status. It is an invitation to the general public to buy shares in the newly formed plc.ANNUAL GENERAL MEETING(AGM) is a legal requirement for all companies. All shareholders may attend. They vote on who they want to be on

16、the board of Directors for the coming year.DIVIDENDS are payments made to shareholders from the profits of a company after it has paid corporation tax. They are the return to shareholder for investing in the company.A FRANCHISE is a business based upon the use of the brand names, promotional logos a

17、nd trading methods of an existing successful business. The franchisee buys the license to operate this business from the franchisor.Unit 4 Government and economic influences on businessINFLATION is the increase in the average price level of goods and services over time.UNEMPLOYMENT exists when peopl

18、e who are willing and able to work cannot find a job.ECONOMIC GROWTH is when a countrys Gross Domestic Product increases more goods and services are produced than in the previous year.The BALANCE OF PAYMENTS records the difference between a countrys exports and imports.REAL INCOME is the value of in

19、come and falls when prices rise faster than money income.GROSS DOMESTIC PRODUCT (GDP) is the total value of output of goods and services in a country in one year.TRADE CYCLE: Growth Boom Recession Slump Growth BoomEXPORTS are goods and services sold from one country to other countries.IMPORTS are go

20、ods and services bought from one country to other countries.The EXCHANGE RATE is the price of one currency in terms of another, for example 1:$1.5EXCHANGE RATE DEPRECIATION is the fall in the value of a currency compared with other currencies. Balance of payment=Revenue from exports spending on impo

21、rtsDIRECT TAXES are paid directly from incomes-for example, income tax or profit tax.INDIRECT TAXES are added to the prices of goods and taxpayers pay the tax as they purchase the goods- for example, VATDISPOSABLE INCOME is the level of income a taxpayer has after paying income tax.An IMPORT TARIFF

22、is a tax on an imported product.An IMPORT QUOTA is a physical limit to the quantity of a product that can be imported.MONETARY POLICY 货币政策 is a change in interest rates by the government or central bank, e.g. the European Central Bank.EXCHANGE RATE APPRECIATION is the rise in the value of a currency

23、 compared to other currencies.SUPPLY SIDE POLICIES 供给政策 are used by government to improve the efficient supply of goods and services in their countries.CONSUMER PRETECTION:1951 Weight and Measures Act1968 Trade Description Act1974 Consumer Credit Act1979 Sales of Goods Act1987 Consumer Protection Ar

24、tMONOPOLIES- 特征: 1 Have eliminated their competitors by mergers or takeovers 2 Invent a product and prevent other firms from making it 3 Be too expensive for other firms to set up in competitionCONTROL OF MONOPLIES 1 Decision taken by monopolists which are thought to be against consumer interests-su

25、ch as trying to eliminate competitors or refusing to supply retailers which charge low prices or sell competing products. 2 Proposed mergers or takeovers that will create a monopoly.PROTECTION AGAINST UNFAIR DISCRIMINATION 1975 Sex Discrimination Act 1976 Race Relations Act 1994 Disability Discrimin

26、ation ActPROTECTION OF HEALTH AND SAFETY 1 Protect workers from dangerous machinery 2 Provide safety equipment and clothing 3 Maintain reasonable workplace temperature 4 Provide hygienic conditions and washing facilities 5 Do not insist on excessively long shifts and provide breaks in the work timet

27、able.PROTECTION AGAINST UNFAIRE DISMISSAL 1 Joining a trade union 2 Being pregnant 3 When no warnings are given before dismissalWAGE PROTECTION 1 The wage rate to be paid 2 How frequently wages will be paid 3 What deductions will be made from wages, for example, income taxAn ETHICAL DECISION is a de

28、cision taken by a manager because of the moral code observed inthat firm. This can include improving working conditions for staff beyond legal requirements, or not producing dangerous or polluting goods-even if these activities are not illegal.An INDUSTRIAL TRIBUNAL is a legal meeting which consider

29、s workers complaints of unfair dismissal or discrimination at work.An CONTACT OF EMPLOYMENT is a legal agreement between employee listing the rights and responsibilities of workers.PLANNING PERMISSION is given by a government body to allow a business to build a factory or office in a particular loca

30、tion. This permission can be refused if the site is not suitable.A DEVELOPMENT AREA is a region of a country where businesses will receive financial support to establish there. High unemployment is often a problem in these areas.Unit 5 Other external influences on businessA CONSTRAINT on a business

31、is something that limits or controls his actions or decisions.EXTERNAL CONSTRAINTS are those over which a business has no direct control.SOCIAL RESPONSIBILITY is when a business takes decisions that many benefit shareholders other than shareholders, e.g. a decision to reduce pollution of the local e

32、nvironment by using the latest and least dirty production equipment.PRESSURE GROUPS are formed by people who share a common interest and who will take action try to change government policy or business decision.COST-BENEFIT ANALYSIS is the valuation by a government agency of all external and private

33、 costs and benefits resulting from a business decision.EXTERNAL COSTS are the costs paid by the rest of society, other than the business, as a result of a business decision.EXTERNAL BENEFITS are the gains to the rest of society, other than the business, resulting from a business decision.PRIVATE COS

34、TS are the costs of a business decision actually paid for by the business.PRIVATE BENEFITS are the financial gains made by a business as a result of a business plan.SOCIAL COST is the addition of the private and external benefits of a business decision.SOCIAL BENEFIT is the addition of the private a

35、nd external benefits of a business decision.Unit 6 Business costs and revenueFIXED COSTS are costs which do not vary with the number of items sold or produced in the short term. They have to be paid whether the business is making any sales or not. They are also known as OVERHEAD COSTS.VARIABLE COSTS

36、 are costs which vary with the number of items sold or produced. They are often called DIRECT COSTS as they can be directly related to or identified with a particular product.TOTAL COSTS are fixed and variable costs combined.BREAK-EVEN CHARTS are graphs which show how costs and revenues of a busines

37、s change with sales. They show the level of sales the business must make in order to break even.The REVENUE of a business is the income during a period of time from the sale of goods or services.Total revenue= Quantity sold PriceThe BREAK-EVEN POINT is the level of sales at which Total costs = Total

38、 revenue.The CONTRIBUTION of a product is selling price less variable cost.DIRECT COSTS are those that can be directly related to or identified with a particular product or department.MARGINAL COSTS are the extra costs a business will incur by producing one more unit of output.INDIRECT COSTS are tho

39、se costs which cannot be direct related to a particular product. They are often termed OVERHEADS or OVERHEAD COSTS.AVERAGE COST PER UNIT is the total cost of production divided by total output.ECONOMIES OF SCALE are the factors that lead to a reduction of average costs as a business increases in siz

40、e. Purchasing economies 2. Marketing economies 3.Financial economies 4. Managerial economies 5. Technical economiesDISECONOMIES OF SCALE are the factors the lead to an increase in average costs as a business grows beyond a certain size. Poor communication 2. Low moraleFORECASTS are predictions of th

41、e future, for example, likely future changes in the size of the market.A TREND is an underlying movement or direction of data over time, for example, the trend of sales data may be increasing.A LINE OF BEST FIT is a line drawn through a series of points, for example, sales data, which best shows the

42、 trend of that data. It can be used to forecast results in the future.BUDGETS are plans for the future containing numerical or financial targets.Unit 6 Business costs and revenueFIXED COSTS are costs which do not vary with the number of items sold or produced in the short term. They have to be paid

43、whether the business is making any sales or not. They are also known as OVERHEAD COSTS.VARIABLE COSTS are costs which vary with the number of items sold or produced. They are often called DIRECT COSTS as they can be directly related to or identified with a particular product.TOTAL COSTS are fixed an

44、d variable costs combined.BREAK-EVEN CHARTS are graphs which show how costs and revenues of a business change with sales. They show the level of sales the business must make in order to break even.The REVENUE of a business is the income during a period of time from the sale of goods or services.Tota

45、l revenue= Quantity sold PriceThe BREAK-EVEN POINT is the level of sales at which Total costs = Total revenue.The CONTRIBUTION of a product is selling price less variable cost.DIRECT COSTS are those that can be directly related to or identified with a particular product or department.MARGINAL COSTS

46、are the extra costs a business will incur by producing one more unit of output.INDIRECT COSTS are those costs which cannot be direct related to a particular product. They are often termed OVERHEADS or OVERHEAD COSTS.AVERAGE COST PER UNIT is the total cost of production divided by total output.ECONOM

47、IES OF SCALE are the factors that lead to a reduction of average costs as a business increases in size. Phasing economies 2. Marketing economies 3.Financial economies 4. Managerial economies 5. Technical economiesDISECONOMIES OF SCALE are the factors the lead to an increase in average costs as a bus

48、iness grows beyond a certain size. Poor communication 2. Low moraleFORECASTS are predictions of the future, for example, likely future changes in the size of the market.A TREND is an underlying movement or direction of data over time, for example, the trend of sales data may be increasing.A LINE OF

49、BEST FIT is a line drawn through a series of points, for example, sales data, which best shows the trend of that data. It can be used to forecast results in the future.BUDGETS are plans for the future containing numerical or financial targets.Unit 7 Business accountingACCOUNTS are the financial reco

50、rds of a firms transactions.USERS OF FINAL ACCOUNT: Shareholders/Creditors/ Government/CompetitorsThe TRADING ACCOUNT shows how the gross profit of a business is calculated.The COST OF GOODS SOLD is the cost of producing or buying in the goods actually sold by the business during a time period.The S

51、ALES REVENUE is the income to a business during a period of time from the sale of goods or services.A GROSS PROFIT is made when sales revenue is greater than the cost of goods sold. Gross profit = Sales revenue Cost of goods soldNET PROFIT is the profit made by a business after all costs have been d

52、educted from sales revenue. It is calculated by subtracting overhead costs from gross profits. Net profit = gross profit expensesThe PROFIT AND LOSS ACCOUNT shows how the net profit of a business and the retained profit of a company are calculated.DEPRECIATION is the fall in the value of a fixed ass

53、et over time.An APPROPRIATION ACCOUNT is that part of the profit and loss account which shows how the profit after tax is distributed-either as dividends or kept in the company as retained profits.RETAINED PROFIT is the net profit reinvested back into a company, after deducting tax and payments to owners,