PSEB SS Business Studies flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Business
- An economic activity involving the production or exchange of goods and services with the primary objective of earning profit and bearing risk.
- Profit motive
- The primary economic objective of business; profit is essential for survival, growth, and covering risks, but not the sole objective.
- Business risk
- The possibility of inadequate profits or losses due to uncertainties or unexpected events; risk is inherent in all business activities.
- Business environment
- The sum of internal and external factors that affect the functioning and performance of a business enterprise.
- Micro environment
- External forces closely related to the business that directly affect its operations: customers, competitors, suppliers, marketing intermediaries, and publics.
- Macro environment
- General external forces that affect all businesses indirectly: political, economic, social, technological, legal, and environmental factors.
- SWOT analysis
- A strategic planning tool used to identify a firm's Strengths, Weaknesses, Opportunities, and Threats relative to its internal and external environment.
- Economic environment
- External economic factors such as interest rates, inflation, income levels, and exchange rates that influence business decisions and consumer spending.
- Social environment
- Customs, traditions, values, and demographic trends of society that shape consumer preferences and business practices.
- Technological environment
- The state of technology and innovation in an economy, including R&D, automation, and digital tools that affect business operations.
- Political environment
- Government policies, political stability, and ideology that influence business regulation, taxation, and trade.
- Legal environment
- Laws, regulations, and court decisions that govern business conduct, including consumer protection, competition, and labor laws.
- Sole proprietorship
- A business owned and managed by one person who bears all risks and receives all profits; unlimited liability and no separate legal entity.
- Partnership
- A business owned by two or more persons who share profits and losses; governed by a partnership deed, with unlimited liability unless registered as LLP.
- Joint stock company
- An artificial legal entity owned by shareholders, with perpetual succession, limited liability, and management separated from ownership.
- Cooperative society
- A voluntary association of persons who pool resources for mutual benefit, based on one-member-one-vote and service motive rather than profit.
- Public sector enterprise
- A business owned and managed by government, aiming to provide essential goods/services and promote public welfare; examples include railways and utilities.
- Private sector enterprise
- A business owned and managed by private individuals or groups, with profit as the primary objective and limited government interference.
- Multinational corporation
- A company that operates in multiple countries, with headquarters in one country and subsidiaries or branches in others.
- Joint venture
- A business arrangement where two or more parties pool resources to undertake a specific project or create a new entity, sharing risks and rewards.
- Public private partnership
- A collaborative arrangement between government and private sector to finance, build, and operate infrastructure or public services.
- Business plan
- A written document outlining a business's objectives, strategies, market analysis, financial forecasts, and operational details to guide and secure funding.
- Market research
- The systematic gathering, recording, and analysis of data about customers, competitors, and the market to inform business decisions.
- Marketing mix (4 Ps)
- The combination of Product, Price, Place, and Promotion used by a firm to meet customer needs and achieve marketing objectives.
- Product life cycle
- The stages a product goes through from introduction to decline: introduction, growth, maturity, and decline, each requiring different marketing strategies.
- Branding
- The process of creating a unique name, symbol, or design that identifies a product and differentiates it from competitors.
- Advertising
- A paid form of non-personal communication about a product or organization through mass media to inform, persuade, or remind customers.
- Sales promotion
- Short-term incentives such as discounts, coupons, contests, or free samples used to stimulate quicker or greater purchase of products.
- Distribution channel
- The path through which goods flow from producer to consumer, including intermediaries like wholesalers, retailers, and agents.
- Working capital
- The capital required for day-to-day operations, calculated as current assets minus current liabilities; it ensures smooth business functioning.
- Fixed capital
- Long-term investment in fixed assets such as land, buildings, machinery, and equipment used for production over many years.
- Break-even point
- The level of sales at which total revenue equals total costs, resulting in neither profit nor loss; calculated as fixed costs divided by contribution per unit.