Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
59 Cards in this Set
- Front
- Back
Adding Value |
A process through which a business increases the worth of the resources by modifying them |
|
Advisor |
An external contact of a business that provides support and advice, sometimes for free |
|
Bank Loan |
A fixed amount loan from a bank which is generally used to finance long-term assets |
|
Bank Overdraft |
When a bank allows a holder of a current account to overspend their account up to an agreed limit |
|
Breakeven Output |
is the level of production at which total revenue equals total cost i.e the business is making neither a profit nor a loss |
|
Budget |
A detailed plan of income and expenses expected over a certain period of time |
|
Business Angel |
A particular type of investor, usually a successful entrepreneur, who is willing to invest in a high-risk, high-growth firms at a very early stage |
|
Business Plan |
A detailed description of new or existing business, including the company's strategy, aims and objectives, marketing and financial plan |
|
Business Objective |
A stated goal or target of a business that is measured over time (a business can have more that one objective) |
|
Cash Flow |
The movement of cash into (inflow) and out of (outflow) a business |
|
Cash Flow Forecast |
Shows the inflows and outflows of money over a given period of time in a business |
|
Contribution |
The difference between total sales and total variable costs |
|
Contribution Per Unit |
A key number for breakeven analysis: the difference between selling price per unit and variable cost per unit |
|
Costs |
Amounts incurred by a business as a result of its trading operations |
|
Demand |
The amount of a product or service that customers are willing and able to pay at a given time |
|
Demographic |
Defining a market in terms of socio-economic factors such as segmentation age, income, class etc |
|
Electronic Market |
A Market in which buyers and sellers are brought together using digital means of communication in order to exchange information and conduct transactions |
|
Enterprise |
The process by which new business are formed in order to offer products and services in a market |
|
Entrepreneur |
An individual who sets up and runs a new business and takes on the risks associated with the business |
|
Expenditure Budget |
The budget which sets out the expected costs to be incurred by the firm, usually split into various categories (e.g. production, marketing, administration) |
|
Fixed Costs |
Costs that do not vary with the level of output- e.g. rent, salaries |
|
Franchisee |
The person or company which operates a franchised business format-under licence from a franchisor |
|
Franchisor |
The owner of a business format which is licensed out to other people or businesses |
|
Full-time Employment |
A worker who works s complete working week |
|
income Budget |
The budget which sets out estimates of the likely demand for and value of firms sales |
|
Inputs |
The resources (land, labour, capital, enterprise) that go into producing goods services |
|
Limited Liability |
Shareholders are only liable for the money they have invested- not for the overall debts and liabilities of their company |
|
Location |
The place(s) from which a firm does business. Can be both a physical location and also virtual |
|
Margin of Safety |
The difference between the actual level of output and the break even output |
|
Market |
Any place (e.g. physical, electronic) where buyers and sellers come together with a view to exchanging transactions |
|
Market Growth |
The percentage growth in the size of the market, measures over a specific period |
|
Market Research |
The process of planning, collecting and analysing data relevant to help make marketing decisions |
|
Market Segmentation |
The process of dividing a market into smaller sections which contain customers with similar needs and wants |
|
Market Share |
The share of the total market that is owned by a particular business, product or brand. Usually expressed in the percentage terms. The firm with the largest percentage market share is known a the market leader. |
|
Market Size |
The total value or quantity of demand in a specific market over a a specific period of time. Can be measured in value terms or in terms of quantities bought or sold |
|
Niche Market |
A smaller part of larger market in which in which customers have specific needs and wants
|
|
Opportunity Cost |
The cost of a decision as measured by the benefits forgone of the next best alternative |
|
Patent |
The right to be the only user of producer of a specified product or process |
|
Permanent Employee |
An employee who is employed on a formal employment contract and remains with the firm for an open-ended period until the contract is ended. |
|
Primary Research |
the market research that involves the collection of data first hand for a specific purpose |
|
Profit |
The difference between total sales and total costs |
|
Qualitative Research |
Market research concerned with collecting data on attitudes, opinions, beliefs, intentions etc |
|
Quantitative Research |
Market research concerned with collecting data that can be quantifies- e.g. sales statistics |
|
Return |
The rewards to enterprise- e.g. profit, satisfaction |
|
Revenue |
The income or sales that a business achieves in a period. Calculated by multiplying selling price x Units sold |
|
Risk |
The probability or chance that hoped-for outcomes will not occur |
|
Sample |
In market research, a sample is a subset of a population. Sampling is the process of taking and analysing a research sample |
|
Share capital |
The finance invested in a business (limited liability) by the shareholders- part of the equity capital of a firm |
|
Social Enterprise |
A business that has objectives other than making profit. Part of a group of organisations in the "not-for-profit" sector |
|
Sole Trader |
A one person business with unlimited liability for the debts of that business |
|
Supplier |
A business that provides good and services to other firms |
|
Total Costs |
The total of variable and fixed costs in a business |
|
Trade Credit |
Amount owed to suppliers of a business- a source of finance |
|
Trademark |
A word, symbol, or phrase used to identify a particular company's product and differentiate it from other companies' products |
|
Unlimited Liability |
Describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business to the extent that their personal possessions are at risk |
|
Unique Selling Point (USP) |
A feature of a product or service that makes it stand out compared with the competition |
|
Variable Costs |
Costs that vary directly in proportion to output (e.g. materials, pay related to amounts produced or sold) |
|
Venture Capital |
Investment made by specialist funds to finance the launch, early development or expansion of a private company |
|
Working Capital |
The amount of money that a business has available to conduct its day-to-day activities |