AICE BUSINESS REVIEW ALL 335
TERMS 2024/2025 A+
Stakeholders - ANSWER- people or groups of people who can be
affected by and therefore have an interest in any action by an
organization.
Stakeholder Concept - ANSWER- the view that businesses and their
managers have responsibilities to a wide range of groups, not just
shareholders.
Stake - ANSWER- is a vital interest in the business or its activities.
,Legal Obligation - ANSWER- a moral or legal duty to perform or to not
perform some action
Primary Sector Business Activity - ANSWER- firms engaged in
farming, fishing, oil extraction and all other industries that extract
natural resources so that they can be used and processed by other firms.
Secondary Sector Business Activity - ANSWER- firms that manufacture
and process products from natural resources, including computers,
brewing, baking, and clothes-making and construction.
Tertiary Sector Business Activity - ANSWER- firms that provide
services to consumers and other businesses, such as retailing, transport,
insurance, banking, hotels, tourism and telecommunications.
Public Sector - ANSWER- comprises organizations accountable to and
controlled by central or local government (that state).
Private Sector - ANSWER- comprises businesses owned and controlled
by individual or groups of individuals.
Economy - ANSWER- production, distribution or trade of goods and
services within a geographical location.
Free-Market Economy - ANSWER- economic resources are owned
largely by private sector with very little state intervention.
,Command Market Economy - ANSWER- economic resources are
owned, planned and controlled by the state (government).
Mixed Market Economy - ANSWER- economic resources are owned
and controlled by both private and public sectors
Sole Trader - ANSWER- a business in which on person provides that
permanent finance and, in return, has full control of the business and is
able to keep all of the profits.
Partnership - ANSWER- a business formed by two or more people to
carry on a business together, with shared capital investment and usually
shared responsibility.
Limited Company - ANSWER- a corporate company which has to
follow certain rules and regulations.
Limited Liability - ANSWER- the only liability or potential loss a
shareholder has if the company fails is the amount invested in the
company, not the total wealth of the shareholder.
Legal Personality - ANSWER- legal identity separate from that of its
owners; the company itself can be taken to court, not the owners.
, Continuity - ANSWER- the death of an owner or director does not lead
to its break up or dissolution; ownership transfers to the inheritance of
the shares.
Private Limited Company - ANSWER- a small to medium sized
business that is owned by shareholders who are often members of the
same family; this company cannot sell shares to the general public.
Share - ANSWER- a certificate confirming part ownership of a company
and entitling the shareholder owner to dividend and certain shareholder
rights.
Shareholder - ANSWER- a person or institution owning shares in a
limited company.
Public Limited Company - ANSWER- a limited company, often a large
business with the legal right to sell shares to the general public- shares
prices are quoted on the national stock exchange.
Memorandum of Association - ANSWER- this states the name of the
company, the address of the head office through which it can be
contracted, the maximum share capital for which the company seeks
authorization and the declared aims of the business.
Articles of Association - ANSWER- this document covers the internal
workings and control of the business- for example, the names of
directors and the procedures to be followed at meetings will be detailed.
TERMS 2024/2025 A+
Stakeholders - ANSWER- people or groups of people who can be
affected by and therefore have an interest in any action by an
organization.
Stakeholder Concept - ANSWER- the view that businesses and their
managers have responsibilities to a wide range of groups, not just
shareholders.
Stake - ANSWER- is a vital interest in the business or its activities.
,Legal Obligation - ANSWER- a moral or legal duty to perform or to not
perform some action
Primary Sector Business Activity - ANSWER- firms engaged in
farming, fishing, oil extraction and all other industries that extract
natural resources so that they can be used and processed by other firms.
Secondary Sector Business Activity - ANSWER- firms that manufacture
and process products from natural resources, including computers,
brewing, baking, and clothes-making and construction.
Tertiary Sector Business Activity - ANSWER- firms that provide
services to consumers and other businesses, such as retailing, transport,
insurance, banking, hotels, tourism and telecommunications.
Public Sector - ANSWER- comprises organizations accountable to and
controlled by central or local government (that state).
Private Sector - ANSWER- comprises businesses owned and controlled
by individual or groups of individuals.
Economy - ANSWER- production, distribution or trade of goods and
services within a geographical location.
Free-Market Economy - ANSWER- economic resources are owned
largely by private sector with very little state intervention.
,Command Market Economy - ANSWER- economic resources are
owned, planned and controlled by the state (government).
Mixed Market Economy - ANSWER- economic resources are owned
and controlled by both private and public sectors
Sole Trader - ANSWER- a business in which on person provides that
permanent finance and, in return, has full control of the business and is
able to keep all of the profits.
Partnership - ANSWER- a business formed by two or more people to
carry on a business together, with shared capital investment and usually
shared responsibility.
Limited Company - ANSWER- a corporate company which has to
follow certain rules and regulations.
Limited Liability - ANSWER- the only liability or potential loss a
shareholder has if the company fails is the amount invested in the
company, not the total wealth of the shareholder.
Legal Personality - ANSWER- legal identity separate from that of its
owners; the company itself can be taken to court, not the owners.
, Continuity - ANSWER- the death of an owner or director does not lead
to its break up or dissolution; ownership transfers to the inheritance of
the shares.
Private Limited Company - ANSWER- a small to medium sized
business that is owned by shareholders who are often members of the
same family; this company cannot sell shares to the general public.
Share - ANSWER- a certificate confirming part ownership of a company
and entitling the shareholder owner to dividend and certain shareholder
rights.
Shareholder - ANSWER- a person or institution owning shares in a
limited company.
Public Limited Company - ANSWER- a limited company, often a large
business with the legal right to sell shares to the general public- shares
prices are quoted on the national stock exchange.
Memorandum of Association - ANSWER- this states the name of the
company, the address of the head office through which it can be
contracted, the maximum share capital for which the company seeks
authorization and the declared aims of the business.
Articles of Association - ANSWER- this document covers the internal
workings and control of the business- for example, the names of
directors and the procedures to be followed at meetings will be detailed.
