Business Studies

business studies

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  • Created by: Victoria
  • Created on: 19-04-10 15:09

Business- a legally recognised organisation designed to provide good or services to consumers

* Needs- the things people need to survive e.g. water

* Wants- are people’s desire to consume goods and services. Peoples wants are unlimited

* Adding value- occurs when a business increases the value of a product or service increasing the price consumers are willing to pay

* Demand is the amount of a particular good or service that a consumer or group of consumers will want to purchase at a given price

* The opportunity cost is the next best alternative that would have been chosen

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A a market place is anywhere buyers and sellers come together e.g. eBay

* A market consists of all the customers who purchase a particular type of good or service e.g. the market of MP3 players

* Market share is the proportion of a market that a particular producer has e.g. apple iPod took 82 percent of the us retail market share for mp3’s

* Specialisation is where a business concentrates on one particular activity

* Planned economy- the government makes decisions

* Market economy- consumers and businesses make the decisions

* Mixed economy- the private sector provides some goods and services while the government provides others

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A stake holder is and individual or group of people who have an interest in a business e.g. customers, workers

* A business objective is what the business is trying to achieve

* A mission statement is a brief summary of the main objectives of a business

* Satisfying is where a business makes enough profit to survive but does not profit maximise

* The private sector is where part of a business is owned by private individuals

* Public sector is where most of the business is owned by local or central government

* A public corporation is a limited company owned by the government

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  • vertical integration-growth between the sectors

* Footloose businesses can locate anywhere

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