Unit 1 Module 1: Business and its environment
1. Articles of Association - A legal document outlining the internal regulations
and management of a company, including rights and responsibilities of
shareholders, directors, and officers, ensuring smooth governance and
operation.
2. Charities - Non-profit organizations established to provide aid, services, or
funding for social, educational, health, or environmental causes, often
relying on donations and tax exemptions to achieve their missions.
3. Consumer Behaviour - The study of individuals' purchasing decisions,
preferences, and habits, influenced by psychological, social, and economic
factors, aimed at understanding, and predicting market trends.
4. Continuity - The principle of ongoing operation and stability in a business,
emphasizing strategies to ensure seamless functioning during transitions,
crises, or leadership changes.
5. Cooperative Enterprise - A business owned and operated by its members,
who share profits and decision-making responsibilities, emphasizing mutual
benefit and democratic governance.
6. Corporate Culture - The shared values, beliefs, practices, and behaviours
within a company that shape its identity, employee interactions, and business
practices, influencing performance and reputation.
7. Decision-Making - The process of choosing a course of action from
alternatives, involving problem analysis, evaluation of options, and
implementation to achieve organizational or personal goals.
8. Ecological Factors - Environmental influences on business operations,
including climate change, resource availability, and sustainability concerns,
requiring adaptation to minimize ecological impact.
9. Franchise - A business model where a franchisor grants a franchisee the
right to operate under its brand, using established products, services, and
systems in exchange for fees and adherence to guidelines.
10.Globalisation - The increasing interconnectedness of economies, cultures,
and markets worldwide, driven by advances in technology, trade, and
communication, fostering global economic integration.
11.Growth - The expansion of a business in size, revenue, or market influence,
achieved through strategies like innovation, acquisitions, or entering new
markets, often reflecting a company's competitive strength and potential.
12.Holding Companies - Businesses primarily owning controlling shares in
subsidiary firms, focusing on governance, investment management, and
strategic oversight rather than direct operations, creating diversified
portfolios.
13.Human Constraints - Limitations arising from employee capacity, skill
shortages, motivation issues, or workforce resistance, which can hinder
organizational productivity and goal achievement.
14.Incorporated & Unincorporated - Legal distinctions between businesses;
incorporated entities exist as separate legal personalities, while
unincorporated one’s merge ownership with the individual, influencing
liability and operations.
15.Joint Venture - A temporary or long-term business partnership where
parties pool resources, expertise, or capital to achieve mutually beneficial
goals while sharing risks and rewards.
16.Legal Personality - The recognition of a business as an independent entity
with rights and obligations, allowing it to enter contracts, own property, and
be liable under the law.
17.Limited Liability - A legal safeguard ensuring that an owner's financial risk
in a business is restricted to their investment, protecting personal assets from
company debts.
18.Macro Environment - The external factors like political, economic, social,
technological, environmental, and legal trends influencing a business's
strategic decisions and market conditions.
19.Market Economy - An economic system driven by supply and demand
forces, where prices, production, and distribution are determined by
competition rather than centralized control.
20.Market Share - The percentage of an industry's total sales controlled by a
company, reflecting its competitive position and customer base in the
marketplace.
21.Maximising Profit - The strategic objective of businesses to achieve the
highest possible financial returns, balancing revenue growth, cost control,
and investment efficiency to optimize shareholder value.
22.Memorandum of Association - A foundational legal document specifying a
company's purpose, structure, and scope of operations, serving as a contract
between the company and its stakeholders.
23.Mergers - The unification of two or more companies into a single entity,
combining resources, expertise, and markets to achieve economies of scale
and competitive advantages.
24.Microenvironment - The immediate factors influencing a business's
operations, including customers, competitors, suppliers, and intermediaries,
shaping its daily strategies and market responses.
25.Mission Statement - A concise declaration of a company's purpose, values,
and goals, providing direction and inspiring stakeholders to align with its
vision.
26.Mixed Economy - An economic system blending private enterprise with
government regulation and intervention, aiming to balance market efficiency
with social welfare.
27.Multinational - Companies operating in multiple countries, leveraging
global markets, resources, and labour to maximize profitability and
competitiveness.
28.Nationalisation - The transfer of private sector businesses or industries to
government ownership and control, often aimed at safeguarding public
interests or key resources.
29.Natural Constraints - Limitations arising from environmental factors like
climate, resource scarcity, or geography, affecting business operations and
strategic planning.
30.Non-Governmental Organisation - Independent entities operating without
governmental control, often focused on advocacy, humanitarian efforts, or
specific social, environmental, or political causes.
31.Operational Objectives - Short-term, specific goals focused on improving a
business's daily operations, such as efficiency, quality, or cost management,
aligning with broader strategic aims.
32.Opportunity Cost - The value of the next best alternative foregone when
planning, emphasizing the trade-offs inherent in resource allocation.
33.Partnership - A business structure where two or more individuals share
ownership, profits, responsibilities, and liabilities, leveraging mutual skills
and resources for growth.
34.Planned Economy - An economic system where government entities control
production, distribution, and pricing, aiming to allocate resources based on
societal needs rather than market forces.
35.Primary Sector - The segment of the economy focused on natural resource
extraction, including agriculture, fishing, forestry, and mining, forming the
foundation for other industries.
36.Private Limited Company - A type of business with limited liability, owned
by shareholders, restricting share transferability to protect control and
maintain a closed ownership structure.
37.Private Sector - The portion of the economy owned and operated by
individuals or companies, driven by profit motives and competition,
independent of government ownership.
38.Privatisation - The transfer of public sector entities to private ownership,
aimed at improving efficiency, reducing government burden, or increasing
market competition.
39.Public Limited Company - A business structure allowing shares to be
traded publicly on stock exchanges, offering access to capital while requiring
compliance with strict regulations.
40.Public Sector - The part of the economy managed by government bodies,
providing essential services like healthcare, education, and infrastructure,
funded primarily through taxation.
41.Secondary Sector - The economic segment involved in manufacturing and
industrial processes, transforming raw materials from the primary sector into
finished goods or intermediate products.
42.Social Ethics & Environmental Considerations - Business practices
guided by moral values and sustainability principles, focusing on fairness,
inclusivity, and reducing ecological harm in decision-making.
43.Sole Trader - A business owned and operated by an individual, bearing full
control, profits, and liabilities, often characterized by simplicity and
flexibility.
44.Statutory Board - Government-established organizations with legal
authority to oversee specific sectors or functions, ensuring compliance,
regulation, or service delivery.
45.Social Responsibility - A business’s commitment to contribute positively to
society, addressing issues like community welfare, environmental protection,
and ethical practices beyond profit motives.
46.Strategic Objectives - Long-term, overarching goals set by a business to
achieve growth, competitiveness, and sustainability, aligning with its mission
and vision.
47.Tactical Objectives - Medium-term, specific targets designed to support
strategic goals, focusing on measurable outcomes within departments or
operational units.
48.Tariff - A government-imposed tax on imported or exported goods,
influencing trade balances, protecting domestic industries, or generating
revenue.
49.Tertiary Sector - The segment of the economy providing services, including
retail, education, healthcare, and entertainment, supporting the needs of
consumers and other sectors.
50.Trade Liberalisation - The reduction or elimination of trade barriers, such
as tariffs and quotas, to promote international commerce, economic growth,
and market competition.
