148 terms in Topic1
Businesses and the External Environment
Class of shares with priority over ordinary shares for dividends/asset distribution.
What is Business?
Businesses and the External Environment
Investment in private (non-public) companies by PE firms.
What is Business?
Businesses and the External Environment
Sale of shares/securities to limited number of investors privately rather than public offering.
What is Business?
Businesses and the External Environment
Real estate asset; valuable collateral for loans.
What is Business?
Businesses and the External Environment
Formal document issued by company offering securities.
What is Business?
Businesses and the External Environment
Money owed to company by customers for goods/services delivered.
What is Business?
Businesses and the External Environment
Profit made on investment relative to cost.
What is Business?
Businesses and the External Environment
Selling business assets for cash.
What is Business?
Businesses and the External Environment
Loan backed by collateral (asset) lender can claim if unpaid.
What is Business?
Businesses and the External Environment
Financial instruments representing value: stocks, bonds, derivatives.
What is Business?
Businesses and the External Environment
Initial capital to develop business idea to viable stage.
What is Business?
Businesses and the External Environment
Equity finance from investors purchasing company shares.
What is Business?
Businesses and the External Environment
Individual/organization owning shares in company.
What is Business?
Businesses and the External Environment
Units of ownership in company.
What is Business?
Businesses and the External Environment
Borrowing for immediate needs, repaid <1 year.
What is Business?
Businesses and the External Environment
Loan with favorable terms: low/no interest, long repayment period, flexible conditions.
What is Business?
Businesses and the External Environment
Market where company shares are traded.
What is Business?
Businesses and the External Environment
Loan repaid only after senior debt in bankruptcy.
What is Business?
Businesses and the External Environment
Excess money beyond operational needs.
What is Business?
Businesses and the External Environment
Large loan arranged by group of lenders reducing individual risk.
What is Business?
Businesses and the External Environment
Fixed-term loan repaid in regular installments over set period.
What is Business?
Businesses and the External Environment
Arrangement to purchase goods/services on credit; payment due later (typically 30-90 days).
What is Business?
Businesses and the External Environment
Loan without collateral backing.
What is Business?
Businesses and the External Environment
Determining business/asset worth.
What is Business?
Businesses and the External Environment
The process of creating and launching a new business venture from the initial idea through to becoming operational.
What is Business?
Businesses and the External Environment
The moral position or set of values that guides a business's decision-making, particularly regarding issues such as the
What is Business?
Businesses and the External Environment
A business objective focused on the physical, mental, and financial wellbeing of employees beyond minimum legal requirem
What is Business?
Businesses and the External Environment
A business structure where the company is a separate legal entity from its owners, shareholders have limited liability,
What is Business?
Businesses and the External Environment
A business that primarily operates via the internet, selling products or services online rather than through physical pr
What is Business?
Businesses and the External Environment
A short-term business objective focused on generating enough revenue to cover costs and continue operating, particularly
What is Business?
Businesses and the External Environment
A situation where the percentage change in quantity demanded is greater than the percentage change in price (PED > 1 in
What is Business?
Businesses and the External Environment
A situation where the percentage change in quantity demanded is less than the percentage change in price (PED < 1 in abs
What is Business?
Businesses and the External Environment
Alternating periods of economic expansion and contraction.
What is Business?
Businesses and the External Environment
Inflation caused by rising production costs (materials, labor, energy).
What is Business?
Businesses and the External Environment
Inflation from high demand exceeding supply ("too much money chasing too few goods").
What is Business?
Businesses and the External Environment
Sustained increase in general price level.
What is Business?
Businesses and the External Environment
Percentage increase in price level year-over-year.
What is Business?
Businesses and the External Environment
Rapid increase in wage levels.
What is Business?
Businesses and the External Environment
A framework for scanning everything outside the business that could affect it.
What is Business?
Businesses and the External Environment
Cost advantages that arise from growth within a particular business, reducing average unit costs as output expands.
What is Business?
Businesses and the External Environment
Cost advantages that arise from the growth of the whole industry or cluster of businesses in a region, benefiting all fi
What is Business?
Businesses and the External Environment
A situation where a business grows too rapidly without sufficient working capital to finance the expansion, leading to c
What is Business?
Businesses and the External Environment
The ability of a business with a large market share to influence prices, terms of trade, or competitive conditions in it
What is Business?
Businesses and the External Environment
A management philosophy, associated with Milton Friedman, that argues a business's primary duty is to maximise financial
What is Business?
Businesses and the External Environment
Economic fluctuations affecting multiple countries.
What is Business?
Businesses and the External Environment
Worldwide general price increase.
What is Business?
Different Business Forms
Creating business to address social/environmental problems; profit secondary to impact.
What is Business?
Different Business Forms
Business goal benefiting society/environment beyond profit.
What is Business?
Different Business Forms
Individual owning/operating business alone.
What is Business?
Different Business Forms
Support/backing from established business/individual for new venture.
What is Business?
Different Business Forms
Exchange where company shares are traded.
What is Business?
Different Business Forms
Process of company offering shares publicly on stock exchange; becoming PLC.
What is Business?
Different Business Forms
Achievement of business objectives; sustainable profitable operation.
What is Business?
Different Business Forms
Assistance for entrepreneurs: funding, mentoring, advice, networks, training, incubators.
What is Business?
Different Business Forms
Accepting less of one thing to gain more of another.
What is Business?
Different Business Forms
Business conditions where outcomes unpredictable; probabilities unknown.
What is Business?
Different Business Forms
Legal responsibility for all business debts with no limit.
What is Business?
Different Business Forms
Clear picture of future desired state; long-term direction.
What is Business?
Different Business Forms
Amount customers owe for goods/services already delivered.
What is Business?
Different Business Forms
(see Business Angel in 1.5).
What is Business?
Different Business Forms
Borrowing to purchase specific assets (equipment, vehicles, property).
What is Business?
Different Business Forms
Money borrowed from bank to be repaid with interest over agreed period.
What is Business?
Different Business Forms
Starting/growing business with minimal external funding; relying on: personal savings, revenue reinvestment, free resour
What is Business?
Different Business Forms
Assets used long-term in business operations: machinery, vehicles, buildings, computers.
What is Business?
Different Business Forms
Raising capital through borrowing; must repay with interest.
What is Business?
Different Business Forms
Percentage applied to future cash flows to calculate present value.
What is Business?
Different Business Forms
Distribution of profits to shareholders.
What is Business?
Different Business Forms
Raising capital through selling ownership shares.
What is Business?
Different Business Forms
Capital raised from outside sources: banks (loans), investors (equity), governments (grants), organizations (crowd fundi
What is Business?
Different Business Forms
Capital from family members for business.
What is Business?
Different Business Forms
Long-term business assets lasting >1 year: property, equipment, vehicles, technology.
What is Business?
Different Business Forms
(Stock Market - see 1.5).
What is Business?
Different Business Forms
Capital from friends for business.
What is Business?
Different Business Forms
Providing financial resources for business.
What is Business?
Different Business Forms
UK government bonds; low-risk investment paying interest.
What is Business?
Different Business Forms
Non-repayable funding from government for specified purposes: research, training, regional development, environmental in
What is Business?
Different Business Forms
Arrangement to use asset while paying for it in installments.
What is Business?
Different Business Forms
Funding outside formal banking system: family, friends, saving groups, private investors.
What is Business?
Different Business Forms
Cost of borrowing; paid by borrower to lender.
What is Business?
Different Business Forms
Capital raised from within organization: owner's capital, retained profits, asset sales.
What is Business?
Different Business Forms
Purchasing assets expecting future returns: financial (stocks, bonds), physical (equipment, property), business (equity
What is Business?
Different Business Forms
Selling unpaid invoices to factor at discount to get immediate cash.
What is Business?
Different Business Forms
Arrangement to use asset for set period paying regular fees.
What is Business?
Different Business Forms
Legal structure where business is separate legal entity from owners.
What is Business?
Different Business Forms
Conditions/restrictions imposed by lender in loan agreement.
What is Business?
Different Business Forms
Borrowing arrangement; money provided to be repaid with interest.
What is Business?
Different Business Forms
Typical interest rates, fees, terms offered in financial market for different types of borrowing.
What is Business?
Different Business Forms
Financial institutions providing: corporate finance, investment services, advisory to businesses.
What is Business?
Different Business Forms
Small loans to individuals/micro-businesses often in developing countries.
What is Business?
Different Business Forms
Long-term loans for property purchase.
What is Business?
Different Business Forms
Long-term business assets held >12 months.
What is Business?
Different Business Forms
Public method of selling company shares on stock exchange.
What is Business?
Different Business Forms
Money invested by owner/shareholders in business.
What is Business?
Different Business Forms
(Peer-to-Peer).
What is Business?
Different Business Forms
Funding structure for partnerships; capital from partners, loans against personal assets.
What is Business?
Different Business Forms
(see P2P Lending).
What is Business?
Nature and Purpose of Business
Business with primarily social/environmental objectives rather than profit maximization.
What is Business?
Nature and Purpose of Business
Recognizing potential future threats/opportunities and preparing responses.
What is Business?
Nature and Purpose of Business
Individual investor providing capital to startups in exchange for equity.
What is Business?
Nature and Purpose of Business
Process of starting new business from concept to launch.
What is Business?
Nature and Purpose of Business
Goals/targets business aims to achieve.
What is Business?
Nature and Purpose of Business
Formal document detailing: business concept, market analysis, financial projections, operations plan, management structu
What is Business?
Nature and Purpose of Business
Funds invested in business; financial resources.
What is Business?
Nature and Purpose of Business
Personal qualities of successful entrepreneurs: vision, risk tolerance, determination, creativity, resilience, adaptabil
What is Business?
Nature and Purpose of Business
Backup plan if primary plan fails.
What is Business?
Nature and Purpose of Business
Business objective minimizing costs while maintaining quality.
What is Business?
Nature and Purpose of Business
Generating novel ideas/solutions to problems.
What is Business?
Nature and Purpose of Business
Business objective ensuring customers receive value and are content.
What is Business?
Nature and Purpose of Business
Business moving into different products/markets beyond current focus.
What is Business?
Nature and Purpose of Business
As a business produces more, the cost per unit falls — being bigger gives you cost advantages.
What is Business?
Nature and Purpose of Business
Individual creating/running business, assuming financial risk for potential reward.
What is Business?
Nature and Purpose of Business
See Characteristics (Entrepreneurial) above.
What is Business?
Nature and Purpose of Business
Abilities supporting business success: business planning, financial management, marketing, leadership, problem-solving,
What is Business?
Nature and Purpose of Business
Process of creating/running business ventures.
What is Business?
Nature and Purpose of Business
Business ceasing operations; unable to continue.
What is Business?
Nature and Purpose of Business
Money-based rewards motivating performance: salary increases, bonus, commission, profit share, pay rises.
What is Business?
Nature and Purpose of Business
Drive to earn money/profit.
What is Business?
Nature and Purpose of Business
Business model where franchisee operates business using franchisor's brand/systems for fee/royalty.
What is Business?
Nature and Purpose of Business
Strategic goal to increase business size/revenue.
What is Business?
Nature and Purpose of Business
Running business from home.
What is Business?
Nature and Purpose of Business
Process of creating new business concepts.
What is Business?
Nature and Purpose of Business
Desire to work for oneself, control own decisions, be own boss.
What is Business?
Nature and Purpose of Business
Creating new products, services, processes, business models.
What is Business?
Nature and Purpose of Business
Innovation/entrepreneurial activity within existing organization.
What is Business?
Nature and Purpose of Business
Partnership between companies/individuals for specific project/business.
What is Business?
Nature and Purpose of Business
(funding).
What is Business?
Nature and Purpose of Business
Business primarily providing income for owner rather than seeking growth/profit maximization.
What is Business?
Nature and Purpose of Business
Legal structure protecting personal assets from business debts.
What is Business?
Nature and Purpose of Business
Gap/need in market addressable by new business.
What is Business?
Nature and Purpose of Business
Market where existing supply meets/exceeds demand; limited growth opportunity.
What is Business?
Nature and Purpose of Business
Experienced entrepreneur/professional guiding startup founder.
What is Business?
Nature and Purpose of Business
Concise statement of organization's purpose/values/long-term direction.
What is Business?
Nature and Purpose of Business
Startup; newly created business venture.
What is Business?
Nature and Purpose of Business
Non-monetary reasons for entrepreneurship: independence, ethical values, social impact, achievement, flexibility, family
What is Business?
Nature and Purpose of Business
Tendency to expect positive outcomes; characteristic of entrepreneurs.
What is Business?
Nature and Purpose of Business
Business structure of 2+ individuals owning jointly.
What is Business?
Nature and Purpose of Business
Individual's accumulated money used for business capital.
What is Business?
Nature and Purpose of Business
Company publicly traded on stock exchange.
What is Business?
Nature and Purpose of Business
Identifying/addressing business challenges creatively.
What is Business?
Nature and Purpose of Business
(see PLC).
What is Business?
Nature and Purpose of Business
Laws/rules governing business operations: company law, employment law, environmental, health/safety, consumer protection
What is Business?
Nature and Purpose of Business
Ability to recover from setbacks; persistence despite difficulties.
What is Business?
Nature and Purpose of Business
Diversifying investments/activities reducing total risk.
What is Business?
Nature and Purpose of Business
Willingness to accept probability of loss for potential gain.
What is Business?
Nature and Purpose of Business
Business objective increasing sales volume/revenue (rather than profit).
What is Business?
Nature and Purpose of Business
Working for oneself rather than employer.
What is Business?
Nature and Purpose of Business
A business that trades primarily to achieve social, environmental or community objectives, reinvesting profits into its
What is Business?
Nature and Purpose of Business
The total market value of all a company's issued shares: Share Price multiplied by Number of Shares in Issue.
What is Business?