Edexcel A Level Business - Advanced Information Paper 1

Edexcel A Level Business - Advanced Information Paper 1 Objectives - Profit satisfying The aim of making enough profit to live a satisfactory quality of life, but not pushing to maximize profits. Objectives - Profit maximization The process of ensuring that the absolute maximum profit is made from the business, through reducing costs and increasing revenues Objectives - Survival Ensuring that the business continues to exist, even if it is currently making a loss Objectives - Market growth Setting a target of an increased amount of market share (for example a target of 5% market share within a timeframe) Objectives - Cost minimization The process of ensuring that costs are kept to their lowest possible amount Unincorporation A business that doesn't exist as its own entity Incorporation A business that exists as its own entity, thereby giving it legal protection (for example a limited company) Sole Trader An unincorporated business owned by one person. Has unlimited liability Partnership An unincorporated business owned by two or more people. Has unlimited liability. Public Limited Company (PLC) An incorporated business that offers its shares on the stock market for anyone to buy. Has limited liability. Private Limited Company (LTD) An incorporated business that offers its shares privately, pending an agreement with existing shareholders. Has limited liability. Limited liability Where a business is only liable for the value of the assets of the business and capital in the business. Unlimited liability Where the sole trader / partnership is liable for the value of their personal assets and capital, as well as that of the business Globalization The growth of international trade that has made an increasing number of markets global rather than national. Economy The state of a country or region in terms of the production and consumption of goods and services GDP Gross Domestic Product - the value of all goods and services produced within an economy over a period of time. Per capita Looking at data per member of the population International trade A transaction of goods or services taking place between two countries. This could be a transaction carried out between governments or businesses. Imports Where a country buys in goods/services from a seller outside of their own country. Exports Where a country sells goods/services to a buyer outside of their own country. Foreign Direct Investment A situation where a company invests into a new country, either by setting up a new business abroad or taking over/