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business a-level > Basic Definitions > Flashcards

Basic Definitions Flashcards

1
Q

What is Revenue (Turn over)??

A

The amount of money that is earned from the selling of goods and services

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2
Q

What is Competitive Pricing??

A

Price-matching other companies or going below their prices to gain more customers

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3
Q

What is Profit??

A

Achieving a sales revenue that is higher than the total cost

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4
Q

What is Growth??

A

To increase the size or volume of sales by the value

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5
Q

What is an Entrepreneur??

A

People who turn ideas into businesses

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6
Q

What is Survival??

A

To continue to exist as a business

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7
Q

What are Fixed Costs??

A

Costs that are not impacted by the level of output

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8
Q

What are Variable Costs??

A

Costs that are influenced by the level of output

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9
Q

What is the Economy Scale about??

A

It’s all about reducing the costs of things

E.g. Stock

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10
Q

What is an Autocratic leading style??

A

When managers take in no inputs for subordinates, exert authority & make choices off their own beliefs.

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11
Q

What is a democratic leading style??

A

When managers value subordinate inputs, rely on their them and share team responsibilities.

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12
Q

What is Opportunity Cost??

A

The loss of other alternatives when one alternative is chosen

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13
Q

What is cash flow?

A

The movement of money coming into and out of a bank

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14
Q

What is a cash flow forecast?

A

A forward looking statement that tries to predict future cash inflows and outflows

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15
Q

What is an opening balance??

A

How much money the business has at the start of each month

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16
Q

What is a closing balance??

A

How much money the business has at the end of the month

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17
Q

What is net cash flow??

A

The result of inflows and outflows each month

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18
Q

What are receivables??

A

When a business is owed money from customers

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19
Q

What are payables??

A

When a business owes money to suppliers

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20
Q

What are trade creditors?

A

People you owe money to

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21
Q

What is an overdraft??

A

An agreement with the bank allowing the business to withdraw money above the amount available

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22
Q

What is debt factoring??

A

The process of selling a business’ debts

23
Q

What are credit terms??

A

The amount of time a customer is given to pay for their goods and services

24
Q

What is credit control??

A

the process of chasing payments from debtors

25
Q

What are marketing objectives??

A

The targets that the marketing function of a business wants to achieve in a period of time

26
Q

What is sales volume??

A

The amount of sales expressed as a number of units sold
E.g. 20 tonnes of wool

27
Q

What is sales value??

A

The amount of sales expressed as the total sum of money spent by consumers
E.g. £3million expenditure on merch

28
Q

What is market size??

A

The total sales value or sales volume in a given market

29
Q

What is market growth??

A

The % increase in the size of the market by the value or volume over a period of time

30
Q

What is market share??

A

The proportion of total market sales that a firm has

31
Q

What is branding??

A

A promotional method that involves the creation of a distinguished identity for a business and their products

32
Q

What is brand loyalty??

A

When customers keep returning to buy from a recognised brand

33
Q

What are stakeholders??

A

Anyone with an interest in the actions of a business

34
Q

What is a primary stakeholder??

A

Someone in a direct relationship with the business

35
Q

What is benchmarking??

A

Identifying the best practices from other firms and adopting elements of this in the firms performance

36
Q

What is capital expenditure??

A

Spending money on machinery

37
Q

What is equity??

A

Capital invested by the shareholders of a company

38
Q

What is market research??

A

The collection and analysis of data information to inform a business about its market

39
Q

What are gross profit margins (GPM)??

A

A measure of a firms profitability by looking at the relationships between gross profit and sales

40
Q

What is operating profit margins (OPM)??

A

A measure of profitability by looking at the relationships between net profit and sales revenue

41
Q

What is price elasticity??

A

When demand has disproportional responses to price changes of products or services

42
Q

What is price inelasticity??

A

When demand for a product is proportional to the change of its price.

43
Q

What is market segmentation??

A

Occurs when the market is split into subgroups of consumers with similar characteristics

44
Q

What is demographic segmentation??

A

Identifying subgroups of the population based on their demographic profile or characteristics

45
Q

What is income segmentation

A

Identified subgroups of the market based on their levels of income and professions

46
Q

What are the 7P’s of of marketing??

A

Product. Price. Place. Promotion. People. Physical environment. Process.

47
Q

What is a cash cow??

A

This is an established product of a business that have high market share in a low growth market

48
Q

What are rising stars??

A

Products growing in demand, with the potential to become cash cows. They are typically funded by cash cows and face fierce competition

49
Q

What is a problem child??

A

Products with low market share in a high growth market. They can be turned into cash cows with a lot of cost, time and attention

50
Q

What are dogs (marketing)??

A

Products likely to be discontinued due to having little market share and little growth

51
Q

What is the product life cycle??

A

A technique used to track the stages a product goes through during its life. Also tracks the sales of a product from start to end

52
Q

What are the product life cycle stages??

A

Development > introduction > growth > maturity > decline > extension strategies

53
Q

What’s Added Value??

A

The difference between the costs to produce a good or service and the it’s price.

Branding & quality influence it .

business a-level (3 decks)

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