Economy and Business Terms - Charlie, your teacher of English
Planning Cycle: A planning cycle is the process of combining different aspects of planning into one
synthetic unit. Any plan should be practical and cost-effective. A planning cycle commences by
analyzing whether any plan is likely to succeed or not.
Planning Process: It is the development of goals, strategies, task lists and schedules required to
achieve the objectives of a business. The planning process is a fundamental function of
management and should result in the best possible degree of need satisfaction given the resources
available.
Planning: 1. A basic management function involving formulation of one or more detailed plans to
achieve optimum balance of needs or demands with the available resources. The planning process
(1) identifies the goals or objectives to be achieved, (2) formulates strategies to achieve them, (3)
arranges or creates the means required, and (4) implements, directs, and monitors all steps in their
proper sequence.
2. The control of development by a local authority, through regulation and licensing for land use
changes and building.
Poverty trap: A situation faced by low income households, when an increase in wages leads to a
decrease in disposable income. This happens because the increase in income leads to a loss of
government benefits or an increase in SEE taxation greater than the increase in earnings.
In the developing world, many factors can contribute to a poverty trap, including: limited access to
credit and capital markets, extreme environmental degradation (which depletes agricultural
production potential), corrupt governance, capital flight, poor education systems, disease ecology,
lack of public health care, war and poor infrastructure.
Price: It is a value that will purchase a finite quantity, weight, or other measure of a good or service.
As the consideration given in exchange for transfer of ownership, price forms the essential basis of
commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon
formula at a future date, or discovered or negotiated during the course of dealings between the
parties involved. In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller
is willing to accept, and (3) the competition is allowing to be charged.
Privatization: It may have several meanings. Primarily, it is the process of transferring ownership of
a business, enterprise, agency, public service, or public property from the public sector (a
government) to the private sector, either to a business that operates for a profit or to a nonprofit
organization. It may also mean the government outsourcing of services or functions to private firms,
e.g. revenue collection, law enforcement, and prison management.
Privatization has also been used to describe two unrelated transactions. The first is the buying of all
outstanding shares of a publicly traded company by a single entity, making the company privately
owned. This is often described as private equity. The second is a demutualization of a mutual
organization or cooperative to form a joint-stock company.
Product: 1. It is any good, idea, method, information, object or service created as a result of a
process and serves a need or satisfies a want. It has a combination of tangible and intangible
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