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19 Cards in this Set
- Front
- Back
EXCLUDABLE |
The property of a good whereby person can be prevented from using it or gaining benefit when they do not pay for it |
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RIVAL |
The property of a good whereby one person's use diminishes other people's use |
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PRIVATE GOODS |
Goods that are both excludavle and rival |
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PUBLIC GOODS |
Goods that are neither excludable nor rival |
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COMMON RESOURCES |
Goods that are rival but not excludable |
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AIMS |
The long term goals of a business |
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OBJECTIVES |
The means by which a business will be able to achieve its aims |
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STRATEGY |
A series of actions, decisions and obligations that lead to the firm gaining a competitive advantage and exploiting the firms core competencies |
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TACTIC |
Short term framework for decision making |
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MERIT GOOD |
A good which could be provided by the private sector but which may also be offered by the public sector because it is believed that a less than optimal amount would be available to the public if resource allocation was left entirely to the private sector |
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AVERAGE REVENUE |
Total revenue divided by the quantity sold |
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MARGINAL REVENUE |
The change in total revenue from an additional unit sold |
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MARGIB OF SAFETY |
The distance between the break even output and current production where total revenue is greater than total cost |
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CONTRIBUTION |
The difference between the selling price and the variable cost per unit |
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PRODUCT LIFE CYCLE |
A diagram representing the life cycle of a product from launch through to growth, maturity and decline |
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SUPPLY CHAIN |
The various processes, activities, organizations and resources used in moving a product from business to business or business to consumer |
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FREE CASH FLOW |
The cash generated from the firms operations minus that spent on capital assets |
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AGENCY THEORY |
Where managers act as the agents of shareholders and as a result there may be a divorce between ownership and control such that managers pursue their own self interests rather than the interests of shareholders |
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MARKET SHARE |
The proportion of total sales accounted for by a product/business in a market |