IGCSE Enterprise - ALL KEY TERMS
dispute
a disagreement, argument, or debate
minutes
a document giving clear and accurate record of the meeting
franchise
a form of business organisation that allows a company to buy the right to use an existing company's brand name and products/service
bank overdraft
a form of short term lending by the bank when there is no money left in the enterprise's bank account
business plan
a formal document that gives the aims of the enterprise and outlines ways those aims will be achieved
inflation
a general increase in prices and fall in the purchasing value of money.
business network
a group of likeminded people/entrepreneurs who meet on a regular basis to share ideas and explore future business partnerships
bank loan
a larger, longer term investment paid back at an agreed interest rate
mortgage
a larger, longer term loan used to buy property and paid back at an agreed interest
action plan
a list of tasks that need to be completed in order for a set goal to be achieved
business license
a permit that allows a business to operate in a certain area and sell a specific product or service; it is issued by the government
shareholder
a person or institution owning shares in a limited company
customer
a person or organisation that buys goods/materials or services from an enterprise
supplier
a person or organisation that provides the goods/materials or services that an enterprise needs in order to operate
customer
a person or organization that buys goods or services from a store or business.
entrepreneur
a person who starts up a new business or enterprise
arguments
a persuasive claim in a proposal
proposal
a plan or offer
bar charts
a simple chart that quickly displays a single variable like price or sales
table
a simple record of facts and figures presented in rows and columns
objective
a specific target that an enterprise wants to reach so it can achieve its aims
subsidies
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
import duties
a tax to be paid by a business to the government for importing goods from another country
tariff
a tax/charge to be paid by a business to the government for importing (buying goods from other countries) and exporting (selling goods to other countries)
opportunity
a time or event that makes it possible to do something
co-operative
a type of business organization owned and managed by people who use its services or who work there
social enterprise
a type of organization that does not have profit as its main objective
SWOT
a type of strategic analysis that identifies current internal strengths and weaknesses and potential external opportunities and threats for an individual idea or project
PEST
a type of strategic analysis which identifies important external factors that could have an impact on an enterprise
graphs
a visual representation showing the relationship between two sets of numbers
tax incentives
reduced tax rates or complete tax exemptions for some time given to enterprises working in certain industries or located in certain areas
informal
relaxed, friendly and unofficial
gross profit
revenue minus cost of sales
legal compliance
(objective) meet all laws and regulations to avoid legal action or damage to reputation
cash flow
(objective) try to ensure they have enough cash to pay its day-to-day costs
growth
(objective) try to increase its size including market share
survival
(objective) try to keep the enterprise running
sales growth
(objective) try to make as many sales as possible
maximising profit
(objective) try to make as much profit as possible
sales revenue
(objective) try to make as much revenue as possible
satisfying profit
(objective) try to make enough profit to keep the owners comfortable
social
(objective) try to meet the needs of less fortunate members of society
environmental
(objective) try to protect the environment
provide a good service
(objective) try to provide a positive experience to its customers
ethical
(objective) try to treat all its stakeholders fairly
not-for-profit
(objective) try to use any surplus revenue to help it achieve its purpose or mission
income statement
A financial statement showing the revenue and expenses for a fiscal period.
public limited company (plc)
A limited company, often a large business, with the legal right to sell shares to the general public. Its share price is quoted on the national stock exchange
lose-lose
A negotiation outcome in which both people do not receive what they want
win-win
A negotiation outcome in which both sides gain something
win-lose
A negotiation outcome in which both sides getting slightly different outcome than originally intended
consumer
A person who purchases goods and services for personal use
grants
A sum of money given by a certain organization, especially the government, for a certain reason or cause--usually don't need to be repaid
unincorporated business
a business that does not possess a separate legal identity from its owner. The owner(s) have full liability for the business
fair trade
An alternative to international trade that emphasizes small businesses and worker-owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organization, and comply with minimum environmental and safety standards.
innovation
An improvement of an existing technological product, system, or method of doing something.
private limited company (Ltd)
Company owned by shareholders, but shares only sold privately, not on the stock exchange; owners have limited liability
prioritisation
Deciding on what tasks are important and being able to decide which tasks should be carried out first and which tasks are less important.
business cycle
Fluctuations in economic activity, such as employment and production
retained profits
Profit kept by firms to finance investment
resourcefulness
The ability to recognize and use resources effectively to solve difficult situations
delegation
The assignment of new or additional responsibilities to a subordinate
interest rates
The cost of borrowing money
voice intonation
The pitch, speed, fluidity, and sounds of the voice when a person speaks; the way a person says words.
sole trader
a business that is owned and run by just one person, though it may employ staff. It is an unincorporated business in which the owner has unlimited liability for all the debts of the business
partnernship
a business that is owned by two or more people. This sort of a business organisation is unincorporated and so the owners have unlimited liability
pie charts
a chart that is useful for proportions
market share
a company's product sales as a percentage of total sales for that industry
Enterprise process (stage 3)
action planning
overheads
all other expenditures not directly related to cost of sales
income
all the money that comes in to an enterprise
expenditure
all the money that goes out of an enterprise
special economic zones
an area in which business and trade laws are different from the rest of the country
sponsorship
an enterprise paying or offering something in return for having its name linked with an event, person or group
mentor
an expert or experienced person who agrees to provide dedicated advice and support
limited company
an incorporated business that is a separate legal entity from its owners
venture capitalist
an individual or small group who weighs up the risks and rewards of investing in an enterprise; if they invest they expect a share of the enterprise
stakeholder
an individual, group or organisation win an interest in the activities of a business
apologies
an item on the minutes of a meeting which shows the people who were invited to attend, but unable to do so
enterprise
an organisation or business managed by one or more individuals who are able to take the initiative to make decisions and take calculated risks
business enterprise
an organisation that has profit as its main aim
social enterprise
an organisation that is started up for social cause for the betterment of society
sender
an organisation, group or individual attempting to get their message to others
receiver
an organisation, group or individual to whom a message is sent
business organization
an organization that has been established with the purpose of producing and selling particular goods and services
aim
an overall goal that an enterprise wants to achieve
marketing
anticipating, identifying and satisfying customer needs
cash inflow
any cash that comes into the enterprise
cash outflow
any cash that goes out of an enterprise
entity
anything having existence, either physical or mystical
asset
anything of value that is owned
interviews
asking individuals a number of questions; provides detailed answers
surveys and questionnaires
asking people a list of set questions; can be done online, face to face, or sent out by post
trade credit
buying items that an enterprise needs and then having an agreed number of days in which to pay the supplier
cost
cash that an enterprise spends to produce its goods or services
primary research (field research)
collecting new information or data for a specific purpose
brand loyalty
consistent preference for one brand over all others
perserverance
continued efforts in spite of difficulties
formal
conventional, polite, respectful an dofficial
variable costs
costs that increase and decrease with the activity of the enterprise
fixed costs
costs that stay the same despite changes in the activity of the enterprise
not-for-profit enterprises
enterprises that are directly involved in producing goods or providing services, but in a socially responsible way; profits are reinvested into the business or used for benefit of the community
charities
enterprises that raise money by doing fundraising activities and collecting donations
Enterprise process (stage 6)
evaluation of successes and failures
analyse
examine in detail to show meaning, identify elements and the relationship between them
consultants
experts that specialise in all aspects of setting up and running an enterprise and charge a fee for providing their services
Enterprise process (stage 2)
exploring creative solutions
state
express in clear terms
identifying
finding out what customers want and need through market research
explain
set out purposes or reasons / make the relationships between things evident / provide why and/or how and support with relevant evidence
net profit
gross profits minus all other expenditures of the enterprise (often called overheads) that are not directly linked to generating sales
capital
human-made aids to production
Enterprise process (stage 1)
identifying the problem or need or want
Enterprise process (stage 4)
implementing the plan
suppliers
individuals and organizations that provide an organization with the input resources it needs to produce goods and services
test marketing
introducing a new product to a small number of potential customers to see their reaction to it
microfinance
lenders who aid people who do not have enough income to access traditional bank loans
anticipating
looking ahead to spot the next 'big thing' and changes in customer demand
human resources
maintains policies, plans, and procedures for the effective management of employees
customer retention
measuring how loyal customers are to an enterprise (and the likelihood of them buying its products or services again)
grants
money offered to enterprises, usually by governments, for specific prices; usually don't need to be paid back
subsidies
money or reduced taxes given to an enterprise by a government to support its development or for public benefit
external sources of finance
money that is found outside the enterprise
internal sources of finance
money that is found within the enterprise
Enterprise process (stage 5)
monitoring progress
ethics
moral values and principles that govern a person's behaviour or the conducting of an activity
identify
name/select/recognise
land
natural resources that can be used by an enterprise
proximity
nearness, closeness
body language
nonverbal communication through gestures, facial expressions, behaviors, and posture
assets
objects that are owned by the business
issuing shares
offering additional shares in the enterprise to existing shareholders or new people
interest
often, when an enterprise borrows money from a lender they will have to pay back the amount they borrow plus this agreed amount.
surplus
on a cash flow forecast, when the cash that comes into the enterprise is greater than the cash that goes out
deficit
on a cash flow forecast, when the cash that comes into the enterprise is less than the cash that goes out
averse
opposed; unwilling
contribution
part of the calculation to work out break-even point
collective advantage
positive outcomes for more than one party
implications
possible results or effects of an action or a decision
satisfying
providing products where and when they are wanted, and at a price that customers are willing to pay
counter-arguments
reasons put forward to oppose an idea or theory developed in another argument.
unlimited liability
shareholders/owners are liable for all the debts of their organisation and stand to lose their investment as well as personal assets if the business goes into debt.
limited liability
shareholders/owners are only liable to pay or lost the amount they have invested
charity
showing kindness by giving money or gifts to organizations that need them
labour
skilled and unskilled workers who can work for an enterprise
micro loans
small amounts of money that can be borrowed more easily than by a traditional bank loan
reward
something given in recognition of effort or return for something achieved
service
something that an enterprise might do for their customers (such as cleaning windows)
jargon
special words or phrases that are used by a particular group or industry that are not commonly used by everybody
describe
state the points of a topic/give characteristics and main features
demographics
statistical data relating to the population and particular groups within it
trade barriers
steps taken by the government to control international trade; an example would be charging a tax on imports
lenders
suppliers and financial institutions that lend money to companies
focus groups
talking to the same or a similar group of people over a long period of time to explore the needs, thoughts and opinions of customers
innovation
the ability to come up with a completely original idea
initiative
the ability to decide and act on your own without waiting for somebody to tell you what to do
creativity
the ability to develop or improve on established ideas or designs
influencing skills
the ability to get others to do or believe as you wish
leadership
the ability to inspire and encourage others
finance
the activities of an enterprise relating to money
trade payable
the amount of money owed by the enterprise to suppliers, such as for raw material received but not paid for
trade receivable
the amount of money owed to the enterprise by customers who have had goods or services but not yet paid for them
tone
the atmosphere of the negotiation (place, time, language, emotion, etc.)
dissolution
the breaking up into parts; termination of a legal bond or contract
risk
the chance of gaining or losing something as a result of an action taken
franchisee
the company allowed by another company to conduct business using the other company's name and brand
franchisor
the company that allows another company to conduct business using its name and brand
cost of sales
the costs that are directly linked to generating sales, such as raw materials and the labour of those directly involved in production
customer satisfaction
the extent to which customers are pleased with the products and services provided by an enterprise
goods
the finished product sold by an enterprise to its customers
profit maximazation
the goal of many enterprises to make the gap between total revenue and total cost as wide as possible
profit maximization
the goal of many enterprises to make the gap between total revenue and total cost as wide as possible
formation
the idea and process of creating a new business
social responsibility
the idea that an enterprise has a responsibility toward the wider society and environment
social responsibility
the idea that an enterprise has a responsibility towards the wider society and environment
evaluation
the making of a judgment about the amount, number, or value of something; assessment.
seed capital
the money needed to start a business. This money often comes from the owner's personal assets and their friends and family
revenue
the money that comes into an enterprise from selling goods and services (selling price X quantity sold)
cash flow
the movement of money in and out of the enterprise
audience
the organisation, group or individual that you are communicating with
founders
the people who start a company
start-up
the period of an enterprise when it is first set up
break-even point
the point at which income from sales will cover all the enterprise's costs
risk
the possibility that events in relation to an enterprise do not turn out as expected
market research
the process of collecting, collating and analysing data about customers, competitors or a market
negotiation
the process of discussion in order to reach agreement on a course of action (or solve a dispute) that satisfies the interests of all involved
agenda
the program for a meeting; a list, outline, or plan of things to be considered or done
materials
the raw components (such as ingredients for a cake) that are needed to make the finished goods
enterprising
the showing of initiative, imagination, energy and resourcefulness
knowledge
the theoretical facts and information that you gather through your experience or education
secondary research (desk research)
the use of information that already exists and was originally collected for a different purpose
enterprise process
the various stages involved in starting and running an enterprise
sources of finance
the way in which an enterprise gets the money it needs to finance an activity
problem-solving
to be able to find solutions to obstacles which are encountered
self-confidence
to be confident in your own abilities and judgements
monitor
to check or review the progress of something over a period of time
managing risk
to consider the risks and choose which ones are worth taking
interpersonal
to develop and maintain good relationships with others
evaluate
to judge or calculate the quality, importance, amount, or value of something
mitigate
to make milder or softer, to moderate in force or intensity
communication
to make your message understood through a variety of different methods such as verbally, or in writing
team building
to motivate each other to succeed in achieving a common goal
crowdfunding
using websites and social media to encourage large numbers of people to invest small amounts of money in return for a stake in the company, or other reward
total costs
variable costs + fixed costs
observations
watching or recording what people do or buy
mystery shopper programmes
when people act as customers to test out the service offered by a given enterprise
profit
when the total income of the enterprise is greater than the total expenditure of the enterprise
loss
when the total income of the enterprise is less than the total expenditure of the enterprise
satisficing
where an enterprise aims for an adequate level of profit, rather than profit maximization
sales revenue maximization
where an enterprise aims to maximize the revenue received from sales rather than profit
keen
willing to do or accept
slang
words or phrases that might be used when chatting with family or friends informally
discuss
write about issue(s) or topic(s) in depth in a structured way
leasing
you rent a piece of equipment for a monthly fee but the equipment belongs to the leasing company
skills
your ability to do something. This can be something that you were born with such as a natural ability to encourage and motivate people, or it could be something that you have learnt such as time management