Glossary

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Mission Statement
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A statement of the organization's purpose - what it wants to accomplish in the larger environment. Vison or overall goal of the organization.
Aims
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A goal the business sets for itself in order to measure how successful it is
Objectives
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More specific goals of the business derived from the aims.
Strategies
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Plans of action for achieving goals and objectives. How.
Private sector organisations
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businesses owned by individuals
Public sector organisations
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Businesses owned by the government.
Ethics
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Business Morals
(smart) S=?
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specific
(smart) M=?
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measurable
(smart) A=?
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attainable
(smart) R=?
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realistic
(smart) T=?
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timely
Profit
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Total Revenue - Total Cost
Financial Gain
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Ganancia financiera
Total Revenue
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Quantity x Price
Total Costs
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Fixed costs + Variable costs
Fixed costs
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Costs that do not vary with the quantity of output produced
Variable costs
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costs that vary with the quantity of output produced
Loans
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a sum of money borrowed that is expected to be paid back with interest.
cost
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An expense paid to run a buisness
limited liability
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A form of business ownership in which the owners are liable only up to the amount of their individual investments.
unlimited liability
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The owner is personally and fully responsible for all losses and debts of the business. May have to sell personal possessions.
Consumers
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People who buy and use goods and services.
labour
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productive work done for wages
Entrepreneur
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A person who starts up and takes on the risk of a business
Stakeholders
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All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
market
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a group of buyers and sellers of a particular good or service
Niche
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a small specialized market with specific needs
Marketing
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any paid form of non-personal presentation and promotion of goods or services by an identified sponsor
Brand Image
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The consumers' beliefs about the company and/or its goods or services often in terms of quality, price, value and ethics
Market Share
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the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
Supply
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The quantity of something that is available for sale
Demand
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Consumer willingness and ability to buy products
multiplier effect
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An effect in economics in which an increase/decrease in spending produces an increase/decrease in national income and consumption greater/lesser.
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