Backwards vertical growth - When a business merges with, or takes over a business that supplies it with goods or services, Business objectives - What the business aims to achieve, and include survival, profit, growth and providing a service, Business plans - A simple plan which sets out details on the products or service being sold, where the finance is to come from to start the business, how the product or service is to be marketed, and the market research to show there is a need for what is being sold, Capital  - Money raised to start or develop a business, Deed of partnership - A document setting out the operations of the partnership, including amount of capital to be invested and how profits will be shared, Diversification  - When a business merges with or takes over another business with which there is no connection, Dividend - The money paid to a shareholder from the profits of a limited company. This is the reward for the shareholder taking a risk by investing money in the company, Entrepreneur  - A person who takes the risk of starting and running a business enterprise, External growth  - Growth of a business by takeover or merger, External stakeholders  - The local community, suppliers, customers and government, Finance  - A business word used instead of money. The finance needed to start a business is the money needed to do so, Forwards vertical growth - When a business merges with, or takes over a business that it supplies good or services to, Horizontal growth - A merger or takeover where two businesses are involved in a similar operation, e.g. two electrical producers or two shops selling fashion clothing, Internal stakeholders  - The business owners and people who work in the business, Limited liability - Where the responsibility for the debts of a business is limited to the amount invested by a shareholder. A feature of private and public limited companies, Limited liability partnerships - Part partnership, part limited company. Owners are members, not partners. They have limited liability and have to make their finances available to the public, Markets  - Where a business sells its goods and services, Market share  - The share of the total market for a product or service and is shown as a percentage, Merger  - Where two or more businesses agree to join together, Organic growth  - Growth of a business internally by increasing sales. Sales can be increased in a number of different ways, Partnership  - A business owned by between two and twenty partners, Private limited company - A smaller business owned by at least two shareholders. Shares cannot be sold to the general public. Has Ltd after its name, Profit  - The difference between revenue and costs, Public limited company - A large business where shares can be sold to the general public enabling vast sums of money to be raised to develop the company. Has plc after its name, Sole trader - A business owned by one person, Stakeholders - Groups or individuals who have an interest in business, Takeover - Where a business takes a controlling interest in another business, Unlimited liability - Where the responsibility for all the debts of a business rests with the owners of the business. A feature of sole traders and partnerships, Stakeholder group - Owners, employees, customers, suppliers, government, local community,

Unit 1 - All Key Terms

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