Business Flashcards
What are aims and objectives?
The overall goals a business is trying to achieve.
What is market segmentation?
Dividing a market into groups based on characteristics like age, income, etc.
What is a Unique Selling Point (USP)?
A feature that makes a product or service stand out from its competitors.
What is a franchise?
A business model where one business allows another to operate under its name.
Define sole trader.
A business owned and controlled by one person.
What is a partnership?
A business owned by two or more people who share responsibility and profits.
What is limited liability?
Owners are only responsible for business debts up to the amount they invested.
What is unlimited liability?
The owner is personally responsible for all business debts.
Who are stakeholders?
People or groups with an interest in the business (e.g., customers, employees).
What is revenue?
Income from selling goods or services.
What is a business plan?
A document outlining a business’s goals, strategy, and financial forecasts.
What is a cash flow forecast?
A prediction of money flowing in and out of a business.
What is insolvency?
When a business can’t pay its debts.
What is primary market research?
Data collected first-hand (e.g., surveys, interviews).
What is secondary market research?
Using existing data from sources like reports or articles.
What is quantitative data?
Numerical data that can be measured.
What is qualitative data?
Descriptive data about opinions, feelings, and behavior.
What is trade credit?
Buying now and paying later from a supplier.
What is an overdraft?
Borrowing from the bank by spending more than is in the account.
What is crowdfunding?
Raising money from a large number of people, typically online.
What are economies of scale?
Cost advantages gained from producing on a larger scale.
What is internal growth?
Expanding a business using its own resources.
What is external growth?
Expanding by merging with or taking over another business.
What is a merger?
When two businesses join together.
