Business For My Baby Flashcards
1
Q
- Added value
A
The difference between the cost of the materials taken to make a product and the price that is charged for the product.
2
Q
- Aims and objectives
A
The goals of a business. These may be financial or non-financial
3
Q
- Breakeven
A
The number of products of a business must sell so that its total revenue is the same as its total costs. At this point the business will make no profit or loss.
4
Q
- Business plan
A
A plan for the development of a business, giving details such as the products to be made, resources needed, and financial forecasts.
5
Q
- Business success
A
A measure which could be sales, market share or profit related.
6
Q
- Cash flow
A
The flow of money into and out of a business over a period of time.
7
Q
- Cash inflow (Receipts)
A
Money coming into the business. E.g. Revenue, a loan or another source of finance.
8
Q
- Cash outflow (Payments)
A
Money leaving the business. E.g. Wages, suppliers, loan repayments or advertising.
9
Q
- Choice
A
A range of products aimed at differing needs and segments.
10
Q
- Closing balance
A
The amount of money left at the end of the current time period.
11
Q
- Competition
A
When the companies produce comparable products or services within the same market.
12
Q
- Competitive advantage
A
The advantage one company has over another, or several others.
13
Q
- Competitive environment
A
A market which has many competitors.
14
Q
- Consumer
A
The person who use the products.
15
Q
- Consumer income
A
The amount a person or household has to spend, after paying tax.
16
Q
- Consumer rights
A
What the consumer is entitled to by the law.
17
Q
- Crowdfunding
A
Where a large number of individuals invest into a business project on internet sites such as Kickstarter.
18
Q
- Customer
A
The person who buys the products.
19
Q
- Customer needs
A
What the customer wants, these can change over time. E.g. Price, quality, choice or convenience.
20
Q
- Customer service
A
Having a clear understanding of customer expectations and delivering.
21
Q
- Demographics
A
The characteristics of the population in terms of age and gender.
22
Q
- Digital communication
A
Communicating with the customers electronically through things such as a website, social media and email.
23
Q
- Discrimination
A
Judging someone based on their age, gender, race, religion or disability.
24
Q
- Dynamic business.
A
Businesses responding to what consumers want.
25
26. e-commerce
The use of online systems to sell goods and services.
26
27. Economic climate
The broad performance of the UK economy, as measured by GDP growth.
27
28. Enterprise
The skills shown by an entrepreneur.
28
29. Entrepreneur
A person who organizes resources, makes decisions and takes risks in business, in order to benefit from the potential future rewards.
29
30. Exchange rate
The price of one currency in terms of another. E.g. 1 pound= $2
30
31. Export
Goods or services that a firm produces in its home market. but sells in a foreign market.
31
32. Financial aim
Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.
32
33. Fixed cost
Cost which do not change with output. E.g. Rent or salaries.
33
34. Focus group
Where a mumber of customers are invited to attend a discussion about a product.
34
35. Forecast
A prediction of future finances. E.g. Sales, cash flow or profits.
35
36. Franchise
The right given by one business to another to sell goods and services using its name.
36
37. Franchisee
A business that buys the rights to a franchise
37
38. Franchisor
The person who owns the rights to the franchise.
38
39. Gap in the market
An area of the market, with no products currently being provided.
39
40. Good
Physical items of a business sells. E.g. Bikes, laptops and pens.
40
41. Import
Goods and services that are bought into on country from another
41
42. INflation
A general and persistent rise in prices which reduces purchasing power.
42
43. Insolvency
when a business can no longer afford to pay its debts.
43
44. Interest
The cost of borrowing and the reward of saving. Can be fixed or variable.
44
45. Legislation
Laws passed by acts of parliament.
45
46. Limited liability
Where a business and its owners have separate legal identities, meaning shareholders can only lose the original amount they invested into a business.
46
47. Location
Where a business locates
47
48. Margin of safety
The amount of products a firm sells over and above the breakeven point
48
49. Marketing mix
The elements of marketing that are designed to meet the needs of the customer. The elements are product , price, place and promotion
49
50. Market research
A method of evaluation business ideas by setting out the features of a market and plotting on current products being provided. Normally these are used to find a gap in the market.
50
51. Market research
collecting and analyzing data from customers, competitors and the market in general.
51
52. Market segments
An identifiable group of people with similar characteristics. This could be split by location, demographics, lifestyle or income.
52
53. Net cash flow
The difference between cash inflows and cash outflows over a period of time
53
54. Non-financial aim
Aims and objectives that relate to areas other than finance. E.g. Social objectives, personal satisfaction. challenge and control.
54
55. Obsolete
A product which is out of date and no longer used.
55
56. Opening balance
The amount of money the has business has at the start of the current time period.
56
57. Overdraft
With agreement from your bank, taking more out of your account than you actually have, leaving a negative bank balance.
57
58. Partnership
A business organization that is usually owned by 2-20 people, who have unlimited liability.
58
59. Payment systems
The variety of ways in which customers can pay for a product, Includes contactless payments, apple and android pay, PayPal and more traditional methods.
59
60. Place
How the product passes from the producer the the consumer.
60
61. Pressure group
A group with a common interest/goal who work collectively to further the cause.
61
62. Price
The amount charged to the customer for the product.
62
63. Primary research
Research which is being collected for the first time.
63
64. Private limited company (Ltd)
An incorporated business , with Ltd after its name that can sell shares to family and friends. The shareholders have limited liability.
64
65. Product
The good or service a business is selling
65
66. Product portfolio
The range of products a business sells.
66
67. Profit
The amount left from revenue after costs have been paid.
67
68. Promotion
An attempt to obtain and retain customer's by drawing their attention to a business or its products. E.g. Sales promotions, advertising and public relations.
68
69.Qualitative data
Data which is detailed and contains information about people's feelings and opinions.
69
70. Quantitative data
Data which is limited in detail, but can easily be put into graphs and charts for analysis.
70
71. Resource
The land, labor and capital used by entrepreneurs, E.g. Buildings, equipment and staff.
71
72. Retained profit
Profit that is 'ploughed back' into the business.
72
73. Revenue
The money made from selling a product
73
74. Reward
The return for taking a risk and making its a success
74
75. Risk
A situation or decision that has exposure business failure, financial loss or lack of security.
75
76. Secondary research
The collection of data that already exists but is then used for a business's own requirements.
76
77. Selling assest
When a person or business sells assets it owns, such as equipment or vehicles it no longer uses, in order to raise finance.
77
78. Service
Non-physical items a business sells. E.g. Hairdressing, public transport and music streaming.
78
79. Share capital
A way of raising finance through sale of shares.
79
80. Shareholder
A person who owns a 'share' in a business.
80
81. Sole trader
A business with a single owner, who has unlimited liability
81
82. Stakeholder
Those with an interest in the activities of a business. These can be internal or external. E.g. Shareholders, mangers, customers and local community.
82
83. Stakeholder conflict
When different stakeholder groups have different aims and objectives, which can be difficult for a business to satisfy at the same time
83
84. Target market
The segments of the market you are aiming your product at.
84
85. Taxation
Charges from the government
85
86. Technology
Hardware and software that businesses may use
86
87. Trade credit
A period of time given to a customer between receiving the goods and payment being due.
87
88. Unemployment (Selene)
The number of the people who are looking for work but unable to find any.
88
89. Unique selling point
A characteristic of the product that makes it different from other similar products being sold in the market
89
90. Unlimited liabilty
Where a business and its owners are one and the same, meaning the owners are responsible for all the business debts
90
91. Variable cost
A cost which rises as output rises. E.g. Raw materials or packaging.
91
92. Venture capital
An experienced business person provides funds for a small or medium sized companies that may be considered too risky for other investors, in return for equity.
