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