business key terms part 2

is a method of production where goods are produced continuously.

• Mass (flow) production

• Batch production

• Job production

is the maker of products.

• Manufacturer

• Consumer

• Provider

means that the owners of a business are not responsible for the debts of a business. Personal belongings will not need to be given up to pay the debts of the business.

• Limited Liability

• Unlimited liability

means that instead of one worker doing one job on a full time basis, the work will be carried out by more than one person on part time basis.

• Job sharing

• Job production

• Flexi-time

involves increasing the size of a business by increasing its sales, revenue, profits and work force.

• Internal (organic) growth

• Mergers

• External (inorganic) growth

means that workers do not have to attend a workplace every day. Modern communication technology means that work can be carried out at home and can even be monitored from the workplace.

• Home working

• Flexi-time

• Fringe benefits

always stays the same no matter how many goods are produced.

• Fixed cost

• Total Costs

• Operating costs

allows a business to enter a different market in addition to the one they are already involved. This enables the business to spread its risks should the original business fail.

• Diversification

• Merger

• Chain of command

occurs where the total amount of money taken in by a business is the same as the amount of money paid out. Neither a profit nor a loss is made where total revenue equals total cost.

• Break-even

• Cash-flow

• Profit and loss statement

is found when a small number of identical products are made at once.

• Batch production

• Flow production

• Job production