Term
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Definition
| When total income or revenue is greater than total cost. |
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Term
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Definition
| What the firm receives for the sale of its product: price x number sold. |
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Term
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Definition
| Total revenue / number sold. |
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Term
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Definition
| The addition to total revenue from the production of one extra unit. |
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Term
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Definition
| Total revenue minus total costs. |
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Term
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Definition
| The amount required to keep a factor employed in its present activity in the long run. |
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Term
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Definition
| Where a firm chooses a level of output where marginal revenue is equal to marginal costs. |
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Term
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Definition
| A return above normal profit - a surplus payment. |
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Term
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Definition
| Profit below normal which should lead to the firm(s) leaving the industry. |
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Term
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Definition
| Individual who organises the factors of production in order to make a profit. |
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Term
| Public Limited Company (PLC) |
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Definition
| A firm owned by a group of shareholders whose shares can be traded on the London Stock Exchange. |
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Term
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Definition
| A private enterprise firm incorporated with the Registrar of Companies. |
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Term
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Definition
| An individual elected by a company's shareholders to set corporate policies. |
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Term
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Definition
| Non-monetary benefits such as a company car provided by a firm. |
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Term
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Definition
| Financial returns from the ownership of shares in a firm. |
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Term
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Definition
| The rights to buy or sell stock at an agreed price. |
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Term
| Annual General Meeting (AGM) |
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Definition
| Annual meeting where shareholders can discuss the accounts and elect directors. |
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Term
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Definition
| Shareholders who strive for greater dividends and may mobilise other shareholders to oppose management. |
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Term
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Definition
| A bid to buy shares in an attempt to gain control of the firm, which is opposed by the firm's directors who fear job loss. |
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Term
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Definition
| The production by a firm of satisfactory but not maximum profit. |
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Term
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Definition
| Firms, organisations or individuals with an interest in the firm. |
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Term
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Definition
| The amount of greenhouses gases produced measured in terms of Carbon Dioxide. |
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Term
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Definition
| Indicates that organisations embrace sustainable development. |
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Term
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Definition
| Percentage of the total market held by the company. |
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Term
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Definition
| When a firm has the ability to exert influence over the quantity of goods traded or the price at which they are sold. |
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Term
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Definition
| Where all costs and benefits are taken into account before a decision is made. |
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Term
| Capital market discipline |
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Definition
| Where a firm may be taken over by other firms if they appear to be making lower profits than their assets would suggest. |
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Term
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Definition
| Refers to the practice of removing stock of a company from a stock exchange so that investors can no longer trade shares of the stock on that exchange. |
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Term
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Definition
| Turning invention into commercial use - introducing a new product or process. |
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Term
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Definition
| Where two firms at the same stage of production combine. |
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Term
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Definition
| Where firms at different stages of production combine. |
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Term
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Definition
| Where firms with no obvious connection combine. |
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Term
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Definition
| A particular type of horizontal merger. |
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