1.1 The Dynamic Nature of Business Flashcards
Dynamic Nature of Business
The idea that
business is ever-changing because external
factors, such as technology, are always changing.
Venture Capital
Risk capital provided by an
investor willing to take a risk in return for a
share in any later profits; the venture capital
provider will take a share stake in the business.
Demand
the number of units that customers
want – and can afford – to buy.
Entrepreneurs
business people who see
opportunities and are willing to take risks in
making them happen.
Obsolete
a product or service with sales that
have declined or come to an end as customers
fi nd something new.
Adapting Existing Products
finding new products based on the original one, such as Wall’s White
Chocolate Magnum.
Competitive Advantage
a feature of a business that helps it to succeed against rivals.
Original Ideas
ideas that have not been done before.
Business Failure
the collapse of a business,
probably leading to its closure.
Lack of Financial Security
uncertainty for the
business owner about day-to-day family income
and assets.
Independance
the need by many business
owners to make their own decisions and be their
own boss.
Risk and Reward
the balance between the worst
that can happen and the best that can happen.
Customer Needs
the products or services
people need to make life comfortable.
Customer Wants
what people choose to spend
their money on, once the weekly bills have been
paid.
Goods
products that may be fresh, such as
apples, or manufactured, such as Heinz Baked
Beans.
Services
providing useful ways to help people
live their lives, for example shops, restaurants
and hospitals.
Branding
giving a product or service
‘personality’, with a name and logo that makes
it stand out.
Unique Selling Points
an original feature
of a product that rivals aren’t offering.
Value Added
the difference between the
selling price and the cost of bought-in goods
and services (the difference that creates the
possibility of profi t).
Business Decisions
choices that have to be
made, usually within a short time period.
Human Resources
a term used by
organisations that simply means employees.
Resources
things or people that can be used
to help build and run the business.
Risk-taking
making decisions where unknown
factors or chances of failure loom large in the
decision-maker’s mind.
