1. Value chain The concept that value is added at each stage of production, as inputs are trans-
formed into �nal products
2. Small businesses Non-manufacturing businesses: less than 20 employees. Maufacturing business-
es: less than 100 employees
3. Diversity variety; range of factors.
4. Substitutes a product that can be used instead of another one e.g. butter and margarine.
5. Diversity in pro- companies needs a range of products to satisfy a diverse range of consumers.
duction
6. Time-saving
products cleaning, lawn mowing.
Domestic appliances and services that save time e.g. dishwashers, fast-food home
7. Competitors businesses that o er the same or similar product's as your business
8. Budgeting an estimate, often itemized, of expected income and expense for a given period in
the future.
9. Sta�ng a group of persons, as employees, charged with carrying out the work of an
establishment or executing some undertaking.
10. Businesses make Employing people, generating wealth, engaging in technological change, giving
a major contribu- people choice in what they buy and where they work, creating a place for social
tion to society by: interaction, giving a sense of purpose and achievement to people's lives
11. Main aim of most Maximize pro�ts
businesses
12. Businesses also Maximize sales, increase market share and achieve other personal or group goals.
aim to: Businesses may have social goals (e.g. providing speci�c needs of people in the
community)
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, 13. Life cycle Life cycle is the stages that a business will move through from its establishment
to its closure. Each stage has its own characteristics and challenges. The life
cycle of a business consists of four stages: establishment, growth, maturity, and
post-maturity, which can include cessation or renewal
14. Establishment the business is being created, planned and the early days of its operations take
stage place. For some, this is the only stage that a small business may see, as it is by far
one of the most di cult to survive. Many things can go wrong at this stage; thus,
good business planning a crucial and necessary part of it.
15. Growth stage During this stage, a business has an initial time of negative pro�t until it breaks
even and begins to show increased revenues that allow it to truly grow. This is also
the stage that the real test of a business comes into play.
16. Maturity stage The third stage of small business is about expansion. This is the point at which a
business gets to the point where there is su cient revenue being brought in so
that there are no doubts of its survival and it can expand its horizons.
17. Post-maturity By this stage, the business can head in one of three di erent directions; It can
stage continue on in a steady state, it can go through renewal, and it can go into decline
and �nal closure.
18. Business func- refer to the wide range of tasks that a business must perform in order to reach its
tions goals. Each plays a role in the value chain of the business.
19. Prime function The main task of the business, generally expressed in a very brief form. The
individual functions of the business are coordinated in order to achieve the prime
function.
20. Coordination of Includes the process of planning, the division of labour, the overall functional
business func- structure, the span of control of managers and the chain of command in the
tions business.
21. Division of labour
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formed into �nal products
2. Small businesses Non-manufacturing businesses: less than 20 employees. Maufacturing business-
es: less than 100 employees
3. Diversity variety; range of factors.
4. Substitutes a product that can be used instead of another one e.g. butter and margarine.
5. Diversity in pro- companies needs a range of products to satisfy a diverse range of consumers.
duction
6. Time-saving
products cleaning, lawn mowing.
Domestic appliances and services that save time e.g. dishwashers, fast-food home
7. Competitors businesses that o er the same or similar product's as your business
8. Budgeting an estimate, often itemized, of expected income and expense for a given period in
the future.
9. Sta�ng a group of persons, as employees, charged with carrying out the work of an
establishment or executing some undertaking.
10. Businesses make Employing people, generating wealth, engaging in technological change, giving
a major contribu- people choice in what they buy and where they work, creating a place for social
tion to society by: interaction, giving a sense of purpose and achievement to people's lives
11. Main aim of most Maximize pro�ts
businesses
12. Businesses also Maximize sales, increase market share and achieve other personal or group goals.
aim to: Businesses may have social goals (e.g. providing speci�c needs of people in the
community)
1/5
, 13. Life cycle Life cycle is the stages that a business will move through from its establishment
to its closure. Each stage has its own characteristics and challenges. The life
cycle of a business consists of four stages: establishment, growth, maturity, and
post-maturity, which can include cessation or renewal
14. Establishment the business is being created, planned and the early days of its operations take
stage place. For some, this is the only stage that a small business may see, as it is by far
one of the most di cult to survive. Many things can go wrong at this stage; thus,
good business planning a crucial and necessary part of it.
15. Growth stage During this stage, a business has an initial time of negative pro�t until it breaks
even and begins to show increased revenues that allow it to truly grow. This is also
the stage that the real test of a business comes into play.
16. Maturity stage The third stage of small business is about expansion. This is the point at which a
business gets to the point where there is su cient revenue being brought in so
that there are no doubts of its survival and it can expand its horizons.
17. Post-maturity By this stage, the business can head in one of three di erent directions; It can
stage continue on in a steady state, it can go through renewal, and it can go into decline
and �nal closure.
18. Business func- refer to the wide range of tasks that a business must perform in order to reach its
tions goals. Each plays a role in the value chain of the business.
19. Prime function The main task of the business, generally expressed in a very brief form. The
individual functions of the business are coordinated in order to achieve the prime
function.
20. Coordination of Includes the process of planning, the division of labour, the overall functional
business func- structure, the span of control of managers and the chain of command in the
tions business.
21. Division of labour
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