1.

Consumer goods – the physical and tangible goods sold to the general public – include
durable consumer goods like cars and washing machines and non-durable goods like
food, drinks and sweets that can be used only once.
2. Consumer services – the intangible products sold to the general public. It includes hotel
accommodation, insurance services and train journeys.
3. Consumer – Individual who buys goods and services for their own use and does not use
them for resale.
4. Customer – Individual, group of individuals or an organization who purchase goods and
services from a business. They may use it for resale.
5. Factor of Production – Resources required by business to commence production of
goods and services.
6. Capital goods – the physical goods the industry uses to aid in producing other goods
and services, such as machines and commercial vehicles.
7. Adding value – increasing the difference between the cost of purchasing bought-in
materials and the price the finished goods are sold for.
8. Added value – the difference between the costs of purchasing bought-in materials and
the price the finished goods are sold for.
9. Opportunity cost – the benefit of the next most desired option given up.
10. Entrepreneur – someone who takes the financial risk of starting and managing a new
venture.
11. Enterprise – Action of showing initiatives to take risk to start up a business.
12. Branding – Process of differentiating or making a product unique relative to competitors
by developing a symbol, name, image or trademark etc.
13. Multinational Business (MNC) – A business firm that has its head office in one nation,
but with operating branches, factories in other countries.
14. Intrapreneur – Employee of the business who takes direct responsibility for turning an
innovative idea into a profitable product or business venture.
15. Business Plan – Written documents that describe a business, its objectives, strategies,
financial forecast and the market it operates in.
16. Primary Sector Business Activity – 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.
17. Secondary Sector Business Activity – Firms that manufacture and process products from
natural resources including computers, brewing, baking, and clothes-making and
construction.
18. Tertiary Sector Business Activity – Firms that provide services to consumers and other
businesses such as retailing, transport, insurance, banking, hotels, tourism and
telecommunications.
19. Quaternary Sector Business Activity – Firms that provide information related services. It
includes R&D, ICT, computing, web designing and management consultancy, etc.
20. Public Sector – It comprises organizations accountable to and controlled by the central
or local government.
21. Private Sector – It comprises businesses owned and controlled by individuals or groups
of individuals.
22. Mixed Economy – Economic resources are owned and controlled by private and public
sectors.
23. Free-Market Economy – economic resources are owned largely by the private sector
with little state intervention.
24. Command Economy – Economic resources are owned, planned and controlled by the
state.
25. Sole Trader – A business in which one person provides the permanent finance and, in
return, has full control of the business and can keep all of the profits.
26. Partnership – A business formed by two or more people to carry on a business together,
with shared capital investment and, usually, shared responsibilities.
27. Limited Liability – The only liability or potential loss the shareholder has if the company
fails is the amount invested in the company, not the total wealth of the shareholder.
28. Unlimited Liability – Founder or Owners of the business bear full, legal responsibility for
debt of the business which can risk their personal assets.
29. Private limited company – A small to medium-sized business owned by shareholders
who are often members of the same family; this company cannot sell shares to the
general public.
30. Share – A certificate confirming part ownership of a company and entitling the
shareholder owner to dividends and certain shareholder rights.
31. Shareholder – A person or institution owning shares in a limited company.
32. Public limited company – A limited company, often a large business, with the legal right
to sell shares to the general public. Prices are quoted on the national stock exchange.
33. IP0- initial public offering- An offer to the public to buy shares in a public limited
company.
34. Public corporation – A business enterprise owned and controlled by the state-also
known as nationalized industry.
35. Memorandum of association – This states the name of the company, the address of the
head office through which it can be contacted, the maximum share capital for which the
company seeks authorisation and the declared aims of the business.
36. Articles of association – This document covers the internal working and control of the
business-for example, the names of the directors and the procedures to be followed at
meetings will be detailed.
37. Cooperative – Jointly owned business whose members operate it considering their
mutual benefits, to produce or distribute goods and services. E.g. Consumers'
cooperative, Farmers' cooperative and Workers' cooperative, etc.
38. Franchise – A business that uses the name, logo and trading systems of an existing
successful business.
39. Franchiser – Person or Business selling license containing rights of their brand image,
name or identity to someone who wants to open shops and sell products under that
brand identity.
40. Franchisee – Person or Business purchasing license that contains rights to operate
under, usually a successful established brand.
41. Joint Venture – When two or more firms agree to work closely together on a particular
project and establish a completely separated business division to commence operation
of that project.
42. Social Enterprise – A business with mainly social objectives that injects most of its profit
back into the business with aims based on societal welfare rather than profit motive.
They follow the triple bottom line.