Business Context C.E.1

Non-governmental Organisations: A company that is not owned or held by a government. They are typically non-profit entities. Examples include Oxfam and the Oscars.

Outsourcing: This is when a business hires another business to carry out a task

Direct/Indirect Competitors:

    Direct: Competitors sell similar products and/or services as another business.

    Indirect: Competitors also sell similar products and/or services in the same sector as another business.                       But they are sufficiently different in that they can act as a substitute for the product and/or                           services that a company is selling. A pizza place is in competition with a burger chain.

Investors: These are people, companies or other entities that provide funds with the expectation that they will get more money back than they invested.

Sole trader: A enterprise in which it is owned entirely by a single person and there is no distinction between the owner and the enterprise.

State/Public: The enterprise is owned and controlled by the state government. Example include HMRC

Ltd/Limited: Owned by a small group of individuals. Unlike a sole proprietorship there is a distinction between the company and its stake holders. So a bank that loans money to it cannot go after the individuals but the company as a whole.

Public Limited Company: Shares of a company are available to purchase freely on stock market. A company can be bought and sold on the New York stock exchange.

Charities: Organisation where the primary objectives are philanthropic and in the interest of the common good. They often do not have profit as a motive with little to no government intervention. Examples include Children in Need.

Board of directors: These are people who are elected to represent the shareholders interests. Every public company must have a board of directors that consists of members who are internal and external to the business.

Primary Sector: The foundation sector. It creates raw materials that supply every other sector. For example farming and agriculture.

Secondary Sector: This sector consists of heavy production 

Stakeholders

Clients: A client is a person or company that pays for professional support or services from another company. 

Shareholders: A shareholder is a person, institution or company that owns at least one share of a company.

Board of directors: These are people who are elected to represent the shareholders interests. Every public company must have a board of directors that consists of members who are internal and external to the business.