expenses a business has to pay that stay largely the same, regardless of the business' output.

(a)  

expenses a business has to pay which change directly with output e.g. raw materials

(a)  

These are people or organisations who have supplied goods or services to a firm but have not yet been paid for them.

(a)  

This is a legal document which shows how responsibilities, profits and workload are to be shared.

(a)  

A portion of the after-tax profit that is paid to shareholders according to the number of shares they own.

(a)  

The ability to identify business ideas and opportunities to bring them to fruition and to take risks where appropriate. One of the four Factors of Production.

(a)  

A person who is willing to take a risk by investing money into a business, organising the resources and hoping to make a profit. e.g. Richard Branson. Usually they do this because; they are ambitious, dissatisfied with working for other people, to pursue an interest, or because they have seen an opportunity

(a)  

The act of being an entrepreneur – starting your own business and taking risks.

(a)  

The work done by employees are those running the business. One of the four Factors of Production.

(a)  

Land and buildings. One of the four Factors of Production.

(a)  

The extent of the owner's/owners' responsibility for the debts of the business.

(a)  

The owners are not responsible for the debts of the business. The limit of their liability for the business' debts is the amount they have already invested.

(a)  

When two or more businesses agree to join together.

(a)  

Where a business has a market share of 25% or more. This allows them to dictate prices, their size in the market makes them difficult to compete with as they are able to achieve economies of scale.

(a)  

A specific statement that defines a precise goal that can be measured and delivered within a given time.

(a)  

The cost of the next-best alternative that has to be given up when a choice is made.

(a)  

Contracting another business to carry out some of the business' activities, often to reduce costs.

(a)  

Industries which extract natural resources. e.g. farming, oil drilling & mining.

(a)  

Organisations where the activities are carried out either by national or local government.

(a)  

Materials and resources that are found / grown / extracted in the form that they will be used.

(a)  

Income from the sale of goods and services over a period of time.

(a)  

Industries which manufacture, assemble, process and construct goods.

(a)  

A partner who puts in finance but does not take part in running the business. They have limited liability.

(a)  

A stakeholder in an organisation with a particular interest, such as the Environmental Lobby – a group with a specific interest in businesses operating in an environmentally friendly way.

(a)  

Industries which provide services both to individuals and other sectors of industry.

(a)