Aims and objectives - Are the things that a business is trying to achieve, such as grow larger, or make more profit, Backward 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, Enterprising characteristics - The features of an entrepreneur, which include being determined, creative and having the ability to take risks, 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, Forward vertical growth - When a business merges with, or takes over a business that it supplies good or services to, Growth - Where a business becomes larger, for example by making more products or opening more places where goods and services are sold,
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Unit 1 Business Activity, Part 1 OCR GCSE Business - Key Terms
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