BUSI 100 Business Terms and Definitions
2025-2026
business objectives - ANSWER--measurable targets set by the business
such as sales or profits that have to be achieved within a given time
period
creating value - ANSWER--occurs when outputs are produced that are
worth more than the inputs brought in to provide them
enterprise - ANSWER--is the skills needed to make a new idea work
Entrepreneur - ANSWER--are individuals who take the risk to create or
start a new business or projects
intellectual capital - ANSWER--involves that intelligence of the
workforce - this includes the ability to develop new ideas, find new
solutions to problems and spot a business opportunity
opportunity costs - ANSWER--measures the sacrifice you make if you
choose one course of action in terms of the next best alternative
the primary sector - ANSWER--is the first stage of production and
includes extracting or growing resources. Farming, mining, and fishing
are all part of the primary sector
, BUSI 100 Business Terms and Definitions
2025-2026
scarcity and choice - ANSWER--there are limited resources in an
economy at any moment but unlimited human wants; choices therefore
have to be made about how to allocate these resources
social enterprise - ANSWER--are organisations set up for social
objectives, not just profit
transformation process - ANSWER--of business involves taking inputs
and transforming them in some way to produce outputs for the
consumers
triple bottom line - ANSWER--measure the impact of a business in
terms of People, Planet and Profits
a company - ANSWER--is a business organisation which has its own
legal identity and which has unlimited liability
cooperative businesses - ANSWER--are organisations owned and run by
and for their members, whether they are customers, employees or
residents
dividends - ANSWER--are money that is paid out of profits to the
shareholders. It is a reward to the owners of the business
, BUSI 100 Business Terms and Definitions
2025-2026
a franchise - ANSWER--occurs when one business sells the right to use
and sell its products and/or services to another business
limited liability - ANSWER--occurs when there is limit to the amount
investors in a company can lose
merit good - ANSWER--this is a good or service such as education that
private individuals undervalue because they do not apprecuate the full
benefits of it and therefore do not consume enough of it unless the
government intervenes
nationalisation - ANSWER--occurs when a government takes ownership
of a business from the private sector into the public sector
partnerships - ANSWER--occur when individuals join together other
people and set up together. this is common in professions such as
accountancy, medicine and law
the private sector - ANSWER--refers to organisations owned by
individuals
the public sector - ANSWER--refers to organisations owned by the
government
, BUSI 100 Business Terms and Definitions
2025-2026
the secondary sector - ANSWER--transforms raw materials into finished
products and includes manufacturing and construction industries
a shareholder - ANSWER--is an investor in and one of the owners of a
company
sole traders - ANSWER--are individuals who run their own business and
have unlimited liability
the tertiary sector - ANSWER--represents the service sector. For
example, accountancy.
unlimited liability - ANSWER--occurs when an individual or group of
individuals are personally responsible for all the actions of their business
internal growth - ANSWER--occurs when a business sells more of its
products
niche - ANSWER--small segment of a market
a budget - ANSWER--its financial plan
cooperate social responsibility - ANSWER--occurs if a business accepts
responsibilities to society over and above its legal responsibility
2025-2026
business objectives - ANSWER--measurable targets set by the business
such as sales or profits that have to be achieved within a given time
period
creating value - ANSWER--occurs when outputs are produced that are
worth more than the inputs brought in to provide them
enterprise - ANSWER--is the skills needed to make a new idea work
Entrepreneur - ANSWER--are individuals who take the risk to create or
start a new business or projects
intellectual capital - ANSWER--involves that intelligence of the
workforce - this includes the ability to develop new ideas, find new
solutions to problems and spot a business opportunity
opportunity costs - ANSWER--measures the sacrifice you make if you
choose one course of action in terms of the next best alternative
the primary sector - ANSWER--is the first stage of production and
includes extracting or growing resources. Farming, mining, and fishing
are all part of the primary sector
, BUSI 100 Business Terms and Definitions
2025-2026
scarcity and choice - ANSWER--there are limited resources in an
economy at any moment but unlimited human wants; choices therefore
have to be made about how to allocate these resources
social enterprise - ANSWER--are organisations set up for social
objectives, not just profit
transformation process - ANSWER--of business involves taking inputs
and transforming them in some way to produce outputs for the
consumers
triple bottom line - ANSWER--measure the impact of a business in
terms of People, Planet and Profits
a company - ANSWER--is a business organisation which has its own
legal identity and which has unlimited liability
cooperative businesses - ANSWER--are organisations owned and run by
and for their members, whether they are customers, employees or
residents
dividends - ANSWER--are money that is paid out of profits to the
shareholders. It is a reward to the owners of the business
, BUSI 100 Business Terms and Definitions
2025-2026
a franchise - ANSWER--occurs when one business sells the right to use
and sell its products and/or services to another business
limited liability - ANSWER--occurs when there is limit to the amount
investors in a company can lose
merit good - ANSWER--this is a good or service such as education that
private individuals undervalue because they do not apprecuate the full
benefits of it and therefore do not consume enough of it unless the
government intervenes
nationalisation - ANSWER--occurs when a government takes ownership
of a business from the private sector into the public sector
partnerships - ANSWER--occur when individuals join together other
people and set up together. this is common in professions such as
accountancy, medicine and law
the private sector - ANSWER--refers to organisations owned by
individuals
the public sector - ANSWER--refers to organisations owned by the
government
, BUSI 100 Business Terms and Definitions
2025-2026
the secondary sector - ANSWER--transforms raw materials into finished
products and includes manufacturing and construction industries
a shareholder - ANSWER--is an investor in and one of the owners of a
company
sole traders - ANSWER--are individuals who run their own business and
have unlimited liability
the tertiary sector - ANSWER--represents the service sector. For
example, accountancy.
unlimited liability - ANSWER--occurs when an individual or group of
individuals are personally responsible for all the actions of their business
internal growth - ANSWER--occurs when a business sells more of its
products
niche - ANSWER--small segment of a market
a budget - ANSWER--its financial plan
cooperate social responsibility - ANSWER--occurs if a business accepts
responsibilities to society over and above its legal responsibility
