Glossary Lecture 2 - BCBUS "Business and...

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BCBUS “Business and Enterprise” GLOSSARY FOR LECTURE 2 “HISTORICAL CONTEXT OF BUSINESS” ASSETS A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Assets are bought to increase the value of a firm or benefit the firm's operations. You can think of an asset as something that can generate cash flow, regardless of whether it's a company's manufacturing equipment or an individual's rental apartment. CHARTERED TRADING HOUSE Royal charters granted to the trading companies gave the companies monopolies on trade in particular geographic areas CONGLOMERATE A company that consists of a grouping of businesses from unrelated streams. Conglomerates diversify their business risk through profit gained from profit centres in various lines of business. However, some may become so diversified and complicated that they are too difficult to manage efficiently. Since their large popularity from the 1960s to 1980s, many conglomerates have reduced their profit centres to a choice few. DIVERSIFICATION In the context of the lecture: production of products unrelated to the main product line of a company. More generally Diversification denotes a risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of
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Glossary Lecture 2 - BCBUS "Business and...

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