Edexcel IGCSE (9-1) Commerce Paper 1 - Definitions
registrar of companies
a body responsible for recording details of all limited companies trading in the country
enterprise
a business or a company
limited company
a business organisation that has separate legal identity from that of the owners
sole trader
a business owned by a single person
certificate of incorporation
a document needed before a new company can start trading
Deed of partnership
a legal document that states the official rights of partners
outlet
a point from which goods are sold or distribute
value added tax (VAT)
a sales tax imposed on every stage of production
profitability
ability to make a profit
accrue
accumulation of benefits over time
commercial services
activities such as advertising, transport, and communication in which they assist trade to function
commerce
activities that assist in the exchange and distribution of goods and services
distributor
agent who supplies goods to retailers
workforce
all employed people : all people that work for a company
dividend
amount of money paid to shareholders from profit
output
amount of something produced
entrepreneur
an individual who organises the other factors of production and risks their money in a business venture
annual general meeting (AGM)
annual meeting for the company's shareholder where the board gives a presentation relating to the state and performance of the business
just-in-time
approach to manufacturing that involves storing materials and components as little as possible
protectionism
approach used by a government to protect domestic producers
consumers
are those who buy goods and services for personal use
promotion
attempt to obtain and retain customers by drawing their attention to a firm or its products
needs
basic requirements for human survival
division of labour
breaking down of the production process into small parts; each worker is given a specific task.
venture
business activity, often with risks involved
invoice
business document that contains details such as amount owed and exchange of goods between a buyer and a seller
partnership
business owed by between 2 to 20 people
intermediary
business that acts as a link between buyers and sellers in the chain of distribution
public limited company
company that has shares available to public to buy on the stock exchange
chain of production
different stages of production needed to produce many products
prospectus
document produced by company that wants the public to buy its shares
trade
exchange of goods and services between owners for money
assembly plant
factory where parts are put together to make a finished product
capital
finance provided by the owners of a business
transaction costs
financial costs incurred when goods are exchanged
inventory
goods for resale
intermediate goods
goods produced for businesses
consumer goods
goods purchased by consumers to help satisfy their needs and wants
mass produced
goods that are manufactured in very large quantities
capital goods
goods used to produce other goods
public sector
government organisations that provides goods and services in the economy
industrialisation
growth in the manufacturing sector
constitution
important rules that clearly states how limited companies are structured and governed
mark-up
increasing the price of something to cover additional costs and to increase profitability
requisition form
internal document used in business to request the supply of something that is needed by an employee or department
call centre
large office that specialises in dealing with customer enquiries over the telephone
institutional investor
large organisation such as insurance company that invest large amounts of money in shares and other financial instruments
shrinkage costs
loss of inventory due to theft, shoplifting, or errors and damages to the inventory
stock take
making a detailed record of the total inventories held by a business in a particular point of time
stock market/exchange
market for second hand shares
commission
money earned from the sale of something
severence pay
money given to workers who leave their jobs before the end of their contracts
hub
most important place for a particular activity
sleeping partner
partner who contributes capital takes a share of the profit to place no role in the business
limited partnership
partnership where some partners contribute capital and enjoys a share of appropriate but do not take part in the running of the business
labour
people used in production
wants
people's desire for goods and services
middlemen
person or business that buys goods from producers and sells them on to retailers
credit
practice of buying now and paying later
cooperative
private business that is owned and controlled by the people who uses its products, supplies or services
transaction
process of buying and selling something
production
process which involves converting resources into goods and services
specialisation
production of a limited range of goods by individuals, firms, regions or countries.
tertiary sector
production of services
secondary sector
production that includes converting raw materials into finished and semi - finished goods
primary sector
production that involves extracting raw materials from earth
private sector
provision of goods and services by businesses that are owned by individuals or groups of individuals
productivity
rate at which goods are produced, and the amount produced especially in relation to the work, time and money needed to produce them
factors of production
resources used to produce goods and services
working capital or circulating capital
resources used up in production
m-commerce
retail transaction made online using a mobile phone
e-commerce
retail transactions conducted online
direct services
services aimed directly at consumers
indirect services
services provided by commercial enterprise to support business in the trading process
chairperson
someone in charge of a meeting or directs work of an organization
globalisation
spread of trade, technology, information and jobs across national borders and cultures
economy
system that attempts to solve the basic economic problem
sales tax
tax paid by consumers when buying a good or service
tariffs
tax paid on goods that are imported
advertising
the communication of businesses and its customers where images are shared in the media to encourage the purchase of products
de-industrialisation
the decline in manufacturing
distribution
the delivery of something to other people or places
issue (shares)
the sale of new shares
aids to trade
the services provided to traders like finance, warehousing and transport
fixed capital
the stock of man made resources used to help make goods and services
unincorporated business
those businesses where there is no legal difference between the owner and the business
lead-time
time between placing an order and receiving the delivery
outsource
to arrange for somebody outside the business to carry out work for the business
recruit
to hire somebody to work for a business
sue
to make a legal claim against someone, especially for money because they have harmed you in some way
takeover
to take control of a company by buying the majority of its shares
manufacturing
use of resources such as raw materials to make physical goods
exchange rate
value of one currency in terms of another
provision
when you provide something that someone needs now or the future
limited liability
where a business owner is only responsible for the original amount of money invested in the business
services
where tasks are carried out or facility's provide for customers
interdependence
where the actions of one country or firm have an impact on others
incorporated business
where the business has a separate legal identity from that of its owners
unlimited liability
where the owner of the business is personally responsible for all business debts, possibly beyond the original amount invested
split-shifts
working shift where employees are required to work two or more separate time periods during the day
