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Book1 Flashcards

1
Q

Business

A

Any unincorporated firm such as a sole trader or partnership.

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2
Q

Company

A

Any incorporated firm such as a private limited company (Ltd) or public limited company (Plc)

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3
Q

Asset-led Marketing

A

A business strategy based on the core strengths (core competencies) of the firm. Businesses that adopt this approach use their core assets, such as brand name, to develop and launch new products.

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4
Q

Market Orientation

A

An outward-looking approach basing product decisions on consumer demand, as established by market research

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5
Q

Product Orientation

A

A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

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6
Q

Marketing

A

The action or business of promoting and selling products or services, including market research and advertising to satisfy customers.

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7
Q

Unique Selling Point (USP)

A

Something that makes a product stand out from its competitors

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8
Q

Product

A

A thing that you can touch (tangible) that you can offer for sale to your customers.

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9
Q

Differentiation

A

The extent to which consumers view your product or service as being different from those of rivals.

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10
Q

Product Portfolio

A

The range of products or brands provided by a business

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11
Q

Brand

A

A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of a seller and differentiates them from those of competitors

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12
Q

The 4P’s

A

Product, Price, Place, Promotion

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13
Q

Product Life Cycle

A

The stages through which goods and services move from the time they are introduced on the market until they are taken off the market.

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14
Q

Extension Strategy

A

Method used to increase the life of a product and prevent it falling into decline

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15
Q

Cash Flow

A

The inflows and outflows of cash through a business

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16
Q

Introduction Stage

A

The initial stage of a product’s life cycle; its first appearance in the marketplace, when sales start at zero and profits are negative

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17
Q

Growth Stage

A

The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are starting to be made.

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18
Q

Maturity Stage

A

Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

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19
Q

Saturation Stage

A

That stage of the product life cycle where additional growth in the market is very difficult as there are too many competitors.

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20
Q

Decline Stage

A

Stage of the product life cycle when sales decline and the product might eventually exit the market

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21
Q

The Boston Matrix

A

A model which analyses a product portfolio according to the growth rate of the whole market and the relative share of a product within that market; a product is placed in one of four categories - star, cash cow, problem child or dog

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22
Q

Dog

A

In the Boston Matrix this is a product experiencing low market share in a low growth market.

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23
Q

Star

A

In the Boston Matrix this is a product with a high market share of a high growth market.

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24
Q

Problem Child

A

In the Boston Matrix this is a product that has a small share of a fast growing market

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25
Q

Cash Cow

A

In the Boston Matrix, this is a product with a high share of a low growth market which generates high returns to finance other elements of the matrix.

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26
Q

Penetration Pricing

A

Setting a low initial price on a new product to appeal immediately to the mass market

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27
Q

Price Skimming

A

A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion to attract the so-called ‘early adopters’

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28
Q

Cost-Plus Pricing

A

Adding a standard markup to the cost of the product

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29
Q

Competitive Pricing

A

When the product is priced in line with or just below competitors’ prices to try to capture more of the market.

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30
Q

Psychological Pricing

A

Pricing goods and services at price points that make the product appear less expensive than it is and give the perception of value e.g. £9.95

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31
Q

Contribution Pricing

A

The business calculates the variable costs of making or buying a product and then adds a contribution towards its fixed costs.

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32
Q

Pricing Strategy

A

The pricing policies or methods used by a business when deciding what to charge for its products

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33
Q

Promotion

A

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

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34
Q

Above the Line Promotion

A

The use of mass media channels in order to increase consumer awareness of a product or service e.g. television.

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35
Q

Below the Line Promotion

A

A promotional effort that includes in-store promotions, coupons, dealer discounts, and product placement.

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36
Q

Distribution Channel

A

The means by which you deliver the product or service to the customer

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37
Q

Wholesaler

A

A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.

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38
Q

Retailer

A

A distribution channel that sells to the end consumer

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39
Q

Manufacturer

A

A person or company that makes goods for sale

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40
Q

Direct Distribution Channel

A

A manufacturer sells the product directly to the customer

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41
Q

Traditional Distribution Channel

A

Manufacturer to wholesaler to retailer to consumer

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42
Q

Global Marketing

A

A marketing strategy that consciously addresses customers, markets, and competition throughout the world.

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43
Q

Global Brand

A

A brand marketed under the same name in multiple countries

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44
Q

Digital Media

A

Electronic devices and media platforms such as computers, cell phones, social networking sites, and the Internet, that allow users to communicate, and interact with one another.

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45
Q

Social Media

A

Electronic media that allows people with similar interests to participate in a social network

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46
Q

E-tailing

A

Online retailing that involves retailers selling products over the Internet to customers.

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47
Q

M-Commerce

A

The use of a mobile device for the purpose of buying or selling goods or services

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48
Q

The Marketing Mix

A

The set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market

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49
Q

Budget

A

A forward financial plan of the income and expenditure for a business over a specified period of time.

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50
Q

Owner’s Capital

A

Money put into the business by the owner

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51
Q

Trade Credit

A

The practice of buying goods and services now and paying for them later but this usually incurs an interest charge.

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52
Q

Venture Capital

A

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

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53
Q

Share Capital

A

Money raised from the sale of shares of a limited company

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54
Q

Leasing

A

Obtaining the use of equipment or vehicles and paying a rental or leasing charge over a fixed period. this avoids the need for the business to raise long-term capital to buy the asset. Ownership remains with the leasing company.

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55
Q

Debt Factoring

A

A financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee.

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56
Q

Loan

A

An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus the lending fee, called interest.

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57
Q

Bank Overdraft

A

The bank allows a business or individual to overdraw their account up to an agreed limit for a specified time, to help overcome a temporary cash shortfall. Interest is charged daily on the amount overdrawn.

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58
Q

Retained Profit

A

Profit which is kept back in the business and used to pay for investment in the business.

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59
Q

Sale of Assets

A

A method of raising short term finance by disposing of business assets in return for cash

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60
Q

Cash Flow Forecast

A

Predicts the cash inflows and outflows in future periods, usually months or quarters.

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61
Q

Cash Deficit

A

A situation where a business has more cash flowing out than flowing in.

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62
Q

Cash Surplus

A

When estimated income is greater than estimated expenses.

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63
Q

Income Statement

A

A financial statement that reports a company’s revenues and expenses and resulting net income or net loss for a specific period of time.

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64
Q

Gross Profit

A

Net sales - cost of goods sold

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65
Q

Net Profit

A

Gross Profit - Expenses

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66
Q

Cost of Goods Sold

A

the amount of money a firm spent to buy or produce the products it sold during the period

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67
Q

Gross Profit Margin

A

Gross profit/sales revenue x 100

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68
Q

Net Profit Margin

A

Net profit/sales revenue x 100

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69
Q

Profitability Ratios

A

These measure the income and the operating success of a company for a given period of time

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70
Q

Flexible Working

A

Working arrangements that allow employees some flexibility in the hours and time that they work.

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71
Q

Job Sharing

A

An arrangement whereby two part-time employees share one full-time job

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72
Q

Temporary Staff

A

Workers employed for a fixed period of time after which the employment contract may not be renewed

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73
Q

Hot-Desking

A

Sharing desks or workstations between workers as a way of saving space and resources

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74
Q

Part-Time Work

A

Permanent employment in which individuals work less than a standard work week of 40 hours

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75
Q

Zero-hours contract

A

No minimum hours of work are offered and workers are only called in and paid when work is available

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76
Q

Home Working

A

Working at home, while communicating with your office by telephone, computer or other mobile device.

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77
Q

Multi-Skilling

A

Where workers are trained in more than one skill which enables them to do a range of jobs.

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78
Q

Workforce Planning

A

The process of predicting an organisation’s future labour needs and the availability and skills of current employees and external hires to meet those employment needs and execute the organisation’s business strategy

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79
Q

Recruitment

A

The process through which the organisation seeks applicants for potential employment

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80
Q

On the Job Training

A

Employee training at the place of work while he or she is doing the actual job.

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81
Q

Off the Job Training

A

Training that takes place away from the work area e.g. at a local college.

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82
Q

External Recruitment

A

The process of seeking new employees from outside the firm which brings in new skills and experiences.

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83
Q

Internal Recruitment

A

Appointing workers from inside the business

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84
Q

Job Analysis

A

The process of getting detailed information about jobs

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85
Q

Job Description

A

A written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

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86
Q

Person Specification

A

A detailed list of the qualities, skills and qualifications that a successful applicant will need to have. Often categorised as being desirable and essential.

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87
Q

Interview

A

A face-to-face or telephone questioning of a respondent to obtain desired information.

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88
Q

Work Trial

A

Giving an opportunity for a potential candidate to undertake the role on a trial basis to see how they fit in with the company and to assess their competency to undertake the job successfully.

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89
Q

Telephone Interview

A

Telephone conversation between an interviewer and a respondent

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90
Q

Staff Appraisal

A

A meeting in which a member of staff discusses with their manager how well they have been doing their job. It provides a means of assessing their performance and future training needs.

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91
Q

360-degree feedback

A

A performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves.

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92
Q

Peer Assessment

A

Assessment by co-workers of their performance in the workplace.

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93
Q

Induction Training

A

Training aimed at introducing new employees to a business and its procedures

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94
Q

Apprenticeships

A

These involve a combination of paid on-the-job training and classroom instruction.

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95
Q

Workforce Performance

A

Methods of measuring the effectiveness of employees including labour productivity, staff turnover and absenteeism

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96
Q

Labour Productivity

A

Output per time period / number of employees

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97
Q

Absenteeism

A

The number of working days lost as a result of an employee’s deliberate or habitual absence from work

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98
Q

Labour Turnover

A

A measure of how many people leave a business over a given period of time. It is usually expressed as a percentage of the total labour force

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99
Q

Organisational Design

A

The framework that provides a business with a structure to achieve its objectives

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100
Q

Authority

A

The power or right to give orders, make decisions, and enforce obedience.

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101
Q

Delegation

A

The process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

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102
Q

Span of Control

A

The number of subordinates who report directly to a line manager

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103
Q

Hierarchy

A

A system or organisation in which people or groups are ranked one above the other according to status or authority.

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104
Q

Centralisation

A

Keeping all of the important decision-making powers within head office or the centre of the organisation

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105
Q

Decentralisation

A

Decision-making powers are passed down the organisation to empower subordinates and regional/product managers

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106
Q

Empowerment

A

Giving employees the authority to correct a problem without first checking with management

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107
Q

Chain of Command

A

The line of authority that moves from the top of a hierarchy to the lowest level

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108
Q

Delayering

A

The removal of one or more of the levels of hierarchy from an organisational structure

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109
Q

Tall Structure

A

Characterised by an overall narrow span of control and a relatively large number of hierarchical levels

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110
Q

Flat Structure

A

Characterised by an overall broad span of control and relatively few hierarchical levels

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111
Q

Matrix Structure

A

A company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have to report to more than one manager. Commonly used with project teams.

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112
Q

Motivation

A

The reason or reasons one has for acting or behaving in a particular way.

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113
Q

F.W. Taylor and Scientific Management

A

Theory on how to motivate workers to increase performance, used scientific management approach, believed in piece work payment and economic man.

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114
Q

Scientific Management

A

Studying workers to find the most efficient ways of doing things and then teaching people those techniques

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115
Q

Herzberg’s Two-Factor Theory

A

A theorist who devised a two-factor theory that suggested that motivation depends on the satisfaction of both hygiene factors and the motivators.

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116
Q

Maslow’s Hierarchy of Needs

A

Humanist psychologist who developed a pyramid representing heirarchy of human needs.

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117
Q

Elton Mayo and the Hawthorne Studies

A

Hawthorne Experiment 1928, founder of the human relations movement. His focus identified the importance of team working and recognition.

118
Q

Hygiene Needs

A

Lower-level needs described in Herzberg’s two-factor theory. Herzberg proposed that meeting these needs would eliminate dissatisfaction but would not result in motivated behavior or a state of positive satisfaction.

119
Q

Motivator Factors

A

Refer to the presence or absence of sources of job satisfaction

120
Q

Time and Motion Studies

A

Studies of which tasks must be performed to complete a job and the time needed to do each task.

121
Q

Production Line

A

A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs

122
Q

Vroom’s Expectancy Theory

A

This theory states that people will behave based on what they expect as a result of their behaviour. In other words, people will work in relation to the expected reward.

123
Q

The Porter-Lawler Extension of Expectancy Theory

A

If performance results in equitable and fair rewards, people will be more satisfied; high performance can lead to rewards and high satisfaction

124
Q

Piece Rate Pay

A

Employees are paid for each item produced that meets the desired quality standard

125
Q

Commission

A

An amount paid to an employee based on a percentage of the employee’s sales

126
Q

Salary

A

A fixed amount of money paid to an employee for each pay period (usually monthly).

127
Q

Wage

A

An amount of money paid to an employee at a specific rate per hour worked.

128
Q

Share Ownership

A

Is where shares in the company are given to employees so that they become part owners in the company

129
Q

Performance Related Pay

A

A bonus scheme to reward staff for above-average work performance

130
Q

Bonus

A

An additional amount of payment above basic pay as a reward for good work

131
Q

Job Enlargement

A

Increasing the number of different tasks that a worker performs within one particular job

132
Q

Job Enrichment

A

Changing a task to make it inherently more rewarding, motivating, and satisfying

133
Q

Job Rotation

A

A job enrichment strategy that involves moving employees from one job to another. This requires additional training.

134
Q

Team Working

A

Production is organised so that groups of workers undertake complete units of work

135
Q

Consultation

A

A process in which two or more individuals with varying degrees of experience and expertise deliberate about a problem and its solution

136
Q

Leadership

A

The ability to motivate individuals and groups to accomplish important goals

137
Q

Management

A

The process of accomplishing the goals of an organisation through the effective use of people and other resources.

138
Q

Management by Objectives (MBO)

A

A process of setting mutually agreed upon goals and using those goals to evaluate employee performance

139
Q

Theory X

A

The assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform

140
Q

Theory Y

A

The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction.

141
Q

McGregor’s Theory X and Theory Y

A

A theory of motivation based on management perceptions of worker attitudes in the workplace. Theory X managers are authoritarian and assume that employees need to be supervised. Theory Y managers assume that employees seek recognition and praise for their contributions and achievements.

142
Q

Fiedler’s Contingency Theory

A

In order to maximize work group performance, leaders must be matched to the right leadership situation

143
Q

Authoritarian Leadership Style

A

Characterised by a leader who takes charge, makes all the decisions, and dictates strategies and work tasks.

144
Q

Paternalistic Leadership Style

A

Leaders who treat their employees as family members. They are consultative and act in the best interests of their employees

145
Q

Democratic Leadership Style

A

A leadership style that is characterised by considerable input from group members

146
Q

Trade Union

A

A trade body that seeks to gain higher wages and better working conditions for their members.

147
Q

ACAS

A

Advisory, Conciliation and Arbitration Service

148
Q

Negotiation

A

A form of communication between opposing sides in a conflict in which offers and counteroffers are made and a solution occurs only when both parties agree

149
Q

Strike

A

To refuse to work in order to force an employer to meet certain demands.

150
Q

Work to Rule

A

Situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions.

151
Q

Equal Opportunities

A

The right to access the same opportunities, regardless of factors such as race, age, sex, mental or physical capability

152
Q

Industrial Action

A

Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favour of employees.

153
Q

Collective Bargaining

A

When unions represent workers in labour discussions with management

154
Q

Contract of Employment

A

A legal document that sets out the terms and conditions governing a worker’s job

155
Q

Health and Safety

A

The process of ensuring that the working environment within a firm is both a healthy and a safe one.

156
Q

Minimum Wage

A

A minimum price that an employer can pay a worker for an hour of labour

157
Q

Dismissal

A

Being removed from a duty, position, or employment

158
Q

Added Value

A

The process of increasing the worth of resources by modifying them in some way.

159
Q

Added Value Calculation

A

Selling price - cost of inputs - cost of transformation (manufacture)

160
Q

Job Production

A

Producing a one-off item specially designed for the customer

161
Q

Batch Production

A

Producing a limited number of identical products - each item in the batch passes through one stage of production before passing on to the next stage

162
Q

Flow Production

A

Large-scale production of a standard product, where each operation on a unit is performed continuously one after the other, usually on a production line

163
Q

Productivity

A

Output per worker hour that is measured over a defined period of time

164
Q

Productivity Formula

A

Number of Units Produced / Number of Workers

165
Q

Capacity Utilisation

A

The proportion of total capacity that is used (expressed as a percentage)

166
Q

Capacity utilisation formula

A

Current output/maximum possible output x 100

167
Q

Computer Aided Design

A

The use of computers in the design of products

168
Q

Computer-aided manufacturing (CAM)

A

Using computers to operate and control machines and processes to manufacture a product.

169
Q

Automation

A

The replacement of human labour by machines in the production process

170
Q

Lean Production

A

An approach to production that emphasises the elimination of waste in all aspects of production processes

171
Q

Kaizen

A

Japanese term for continuous improvement

172
Q

Just-in-Time Production

A

A production system that emphasises the production of goods to meet actual current demand, thus minimising the need to hold inventories of finished goods and work in process at each stage of the supply chain

173
Q

Cell Production

A

A form of production where a team of employees take responsibility for a major part of the total production process. They carry out a range of different tasks and this can help to ensure that quality is maintained.

174
Q

Time-Based Management

A

An approach that recognises the importance of time and seeks to reduce the level of ‘unproductive’ time within an organisation

175
Q

Continuous Improvement

A

Ongoing small, incremental improvements in all parts of an organisation

176
Q

Quality

A

A measurement of a product’s ability to satisfy a customer’s needs or requirements

177
Q

Quality Control

A

A process that evaluates output relative to a standard and takes corrective action when output doesn’t meet standards. It seeks to inspect out fault but does not prevent it!

178
Q

Quality Assurance

A

This is a system of agreeing and meeting quality standards at each stage of production to ensure customer satisfaction. It seeks to prevent faults and is not reliant upon a final inspection.

179
Q

Total Quality Management (TQM)

A

The philosophy that everyone in the organisation is concerned about quality, throughout all of the firm’s activities, to better serve customer needs

180
Q

Quality Chains

A

A feature of TQM that views each link in the production process as a link between supplier and customer

181
Q

Quality Circles

A

Voluntary groups of people drawn from various production teams who make suggestions about quality.

182
Q

Benchmarking

A

A process of continuously measuring results against an industry leader, and identifying steps and procedures to improve performance. This needs to ideally be on a like-for-like basis for it to be effective.

183
Q

Zero Defects

A

Eliminating quality defects by getting things right first time.

184
Q

Stock Control

A

The processes and controls used by a business to ensure that it has sufficient (but not too much) stock for its purposes

185
Q

Stock Control Charts

A

Overall objective of stock control is to maintain stock levels so that the total cost of holding stock is minimised. Charts include lead-time, buffer stock, reorder level and reorder quantity.

186
Q

Supplier

A

A business which sells (or supplies) products to another business.

187
Q

Computerised Stock Control

A

Stock details held on a computer database or spreadsheet

188
Q

Buffer Stock

A

Extra inventory held to guard against uncertainty in demand or supply

189
Q

Reorder Level

A

The level at which stock has to be reordered

190
Q

Lead Time

A

The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller’s store, ready for sale.

191
Q

Minimum Stock Level

A

The least amount of inventories that a business wishes to hold; generally this minimum is above zero as a precautionary measure.

192
Q

Innovation

A

An improvement of an existing technological product, system, or method of doing something.

193
Q

Research and Development (R&D)

A

A set of activities intended to identify new ideas that have the potential to result in new goods and services. This is classified as a sunk cost for a business.

194
Q

Sunk Cost

A

A cost that has already been paid and cannot be recovered

195
Q

Product Design

A

The characteristics or features of a product or service that determine its ability to meet the needs of the user.

196
Q

Product Design Process

A
  1. idea development
197
Q

Economies of Scale

A

Factors that cause a producer’s average cost per unit to fall as output rises

198
Q

Managerial Economies of Scale

A

Reductions in average cost as a result of being able to employ specialist managers who are more productive

199
Q

Financial Economies of Scale

A

A situation where large firms are able to borrow money on better terms than smaller firms which makes the cost of financing investment and therefore unit costs lower.

200
Q

Purchasing Economies of Scale

A

A reduction in unit costs as a result of buying in large quantities; these are sometimes called bulk buying economies of scale.

201
Q

Internal Diseconomies of Scale

A

Are forces within a firm that cause the average/unit cost of that firm to increase as it grows in size.

202
Q

External Economies of Scale

A

The cost benefits that all firms in the industry can enjoy when the industry expands.

203
Q

The organisation of factors of production in such a way as to generate profits.

A

Enterprise

204
Q

Small and medium-sized enterprises employing fewer than 250 people.

A

SME

205
Q

A person who organizes, manages, and takes on the risks of a business.

A

Entrepreneur

206
Q

Basic requirements for human survival e.g. shelter, food and water

A

Needs

207
Q

Desires that can be satisfied by consuming a good or service. They are not essential.

A

Wants

208
Q

The portion of the economy concerned with the direct extraction of materials from Earth’s surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

A

Primary Sector

209
Q

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

A

Secondary Sector

210
Q

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

A

Tertiary Sector

211
Q

A system by which goods and services are produced and distributed

A

Economy

212
Q

An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.

A

Stakeholder

213
Q

A formal written document that describes the nature of a business and how it will operate. It is a working document that contains a marketing plan, a financial plan, a human resources plan and an operational plan.

A

Business Plan

214
Q

A place where buyers and sellers come together for the buying and selling of goods and services.

A

Market

215
Q

A smaller section of a larger market in which customers have more specific needs and wants

A

Niche Market

216
Q

A good is targeted at all possible customers in a market, regardless of the differences in their specific needs and wants.

A

Mass Market

217
Q

A person who purchases goods and services for personal use

A

Consumer

218
Q

Someone who pays for goods or services

A

Customer

219
Q

An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

A

Service

220
Q

A tangible good.

A

Product

221
Q

Customers are only a short distance away

A

Local Market

222
Q

The activity of buying or selling goods and services in all the countries of the world.

A

Global Market

223
Q

The total value or quantity of demand in a specific market over a specific period of time. Can be measured in value terms (e.g. sales) or in terms of quantities (e.g. units) bought or sold.

A

Market Size

224
Q

The portion of a market controlled by a particular company or product.

A

Market Share

225
Q

The process of dividing the total market into smaller groups whose members have similar characteristics.

A

Market Segmentation

226
Q

A range of market structures with the two extremes of monopoly and perfect competition at each end. Somewhere in between lie all markets.

A

Spectrum of Competition

227
Q

A market in which there are many buyers but only one seller.

A

Monopoly

228
Q

A market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products.

A

Monopolistic Competition

229
Q

A market structure in which a few large firms dominate a market

A

Oligopoly

230
Q

A market structure in which a large number of firms all produce the same product

A

Perfect Competition

231
Q

Of the same kind

A

Homogenous

232
Q

Protection for consumers against unfair, unethical or unjust business practices.

A

Consumer Protection

233
Q

Consumer willingness and ability to buy products

A

Demand

234
Q

The quantity of something that producers are willing and able to provide to the market.

A

Supply

235
Q

A situation in which quantity demanded equals quantity supplied

A

Market Equilibrium

236
Q

The situation that exists when demand is greater than supply.

A

Excess Demand

237
Q

The situation that exists when supply is greater than demand.

A

Excess Supply

238
Q

A government department in the United Kingdom for strengthening business competition and preventing/reducing anti-competitive strategies

A

Competition and Markets Authority (CMA)

239
Q

Occurring at or dependent on a particular season

A

Seasonal

240
Q

Monetary value of a product as established by supply and demand

A

Price

241
Q

A measure of the sensitivity of demand to changes in price

A

Price Elasticity of Demand

242
Q

A measure of the responsiveness of the quantity demanded to changes in income, measured by the percentage change in the quantity demanded divided by the percentage change in income

A

Income Elasticity of Demand

243
Q

Consumers are very sensitive to price changes and buy more at low prices and less at high prices.

A

Price Elastic

244
Q

Buyers are not sensitive to price changes and demand is relatively unchanged.

A

Price Inelastic

245
Q

When the percentage change in price and quantity demanded are the same

A

Unit Elastic

246
Q

good for which demand increases faster than income when income rises. They are goods with an income elasticity greater than 1.

A

Luxury Good

247
Q

A good for which, other things being equal, an increase in income leads to a decrease in demand e.g. white sliced bread

A

Inferior Good

248
Q

A good for which, other things equal, an increase in income leads to an increase in demand and vice versa.

A

Normal Good

249
Q

A good that can be used in place of another good e.g. water instead of Coca-Cola

A

Substitute

250
Q

Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely).

A

Complementary Good

251
Q

The action or activity of gathering information about consumers’ needs and preferences.

A

Market Research

252
Q

First hand research that is specific to the needs of the individual business.

A

Primary Research

253
Q

Past research which has already been performed and often already published.

A

Secondary Research

254
Q

Descriptive data drawn from non statistical sources that give an insight into the reasons behind consumer buying behaviour.

A

Qualitative Data

255
Q

The use of numerical and statistical data.

A

Quantitative Data

256
Q

The process of selecting representative units from a total population

A

Sampling

257
Q

Method of selecting from a population in which each person has an equal probability of being selected

A

Random Sample

258
Q

A sample constructed to reflect the major characteristics of a given population e.g. if 40% of a target market are female, then 40% of respondents must be female.

A

Quota Sample

259
Q

Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.

A

Bias

260
Q

The part of an economy that is controlled by the government.

A

Public Sector

261
Q

The part of the economy that involves the transactions of private individuals and businesses. They are not associated with government.

A

Private Sector

262
Q

A business owned by one person

A

Sole Trader

263
Q

A business owned by two or more people

A

Partnership

264
Q

A business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.

A

Private Limited Company

265
Q

An incorporated business that allows the general public to buy and sell shares in the company via a stock exchange. All shareholders enjoy limited liability.

A

Public Limited Company

266
Q

The owner is personally and fully responsible for all losses and debts of the business

A

Unlimited Liability

267
Q

A form of business ownership in which the owners are liable only up to the amount of their individual investments.

A

Limited Liability

268
Q

Organisations that do not aim to make a profit; rather, they use any profit or surplus they generate to support their aims (eg. a charity)

A

Not-for-Profit Organisations

269
Q

Non-profit social enterprises that provide voluntary support for good causes

A

Charities

270
Q

Businesses owned jointly by their members, who share the profits equally

A

Co-Operatives

271
Q

The geographical site of a business.

A

Business Location

272
Q

The number of people passing a particular location within a given time period

A

Footfall

273
Q

Where the businesses get money from internally or externally and whether it’s needed for the short term or long term.

A

Sources of Finance

274
Q

A fixed amount loan from a bank which is generally used to finance long-term assets.

A

Bank Loan

275
Q

A deficit in a bank account caused by drawing more money than the account holds.

A

Overdraft

276
Q

The process of selling accounts receivable for cash to a third party who will collect the outstanding debt.

A

Factoring

277
Q

A long-term loan extended to someone who buys property.

A

Mortgage

278
Q

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

A

Venture Capitalist

279
Q

Something, typically money, that is owed or due

A

Debt

280
Q

Total revenue minus total cost

A

Profit

281
Q

A method of determining what sales volume must be reached before total revenue equals total costs. Calculated by dividing fixed costs by contribution per unit.

A

Break-Even Analysis

282
Q

Selling price - variable cost per unit

A

Contribution per Unit

283
Q

Contribution per unit x number of units sold

A

Total Contribution

284
Q

The difference between actual or expected sales and sales at the break-even point.

A

Margin of Safety

285
Q

Costs that do not vary with the quantity of output produced

A

Fixed Costs

286
Q

Costs that vary with the quantity of output produced

A

Variable Costs

287
Q

Costs comprising both fixed and variable components e.g. a phone has a line rental cost which is fixed and then you pay for calls on top which is a variable cost.

A

Semi-Variable Costs

288
Q

A cost that can be easily traced to a specified cost object

A

Direct Cost

289
Q

Cost that cannot be easily or cost-effectively traced to a cost object.

A

Indirect Cost

290
Q

The costs not directly related to the production or selling of goods.

A

Overhead Costs

291
Q

The amount that a business earns from selling its goods or services.

A

Sales Revenue

292
Q

A business that is set up to help society rather than to make a profit.

A

Social Enterprise

component 1 (1 decks)

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