Business For My Baby Flashcards
- Added value
The difference between the cost of the materials taken to make a product and the price that is charged for the product.
- Aims and objectives
The goals of a business. These may be financial or non-financial
- Breakeven
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.
- Business plan
A plan for the development of a business, giving details such as the products to be made, resources needed, and financial forecasts.
- Business success
A measure which could be sales, market share or profit related.
- Cash flow
The flow of money into and out of a business over a period of time.
- Cash inflow (Receipts)
Money coming into the business. E.g. Revenue, a loan or another source of finance.
- Cash outflow (Payments)
Money leaving the business. E.g. Wages, suppliers, loan repayments or advertising.
- Choice
A range of products aimed at differing needs and segments.
- Closing balance
The amount of money left at the end of the current time period.
- Competition
When the companies produce comparable products or services within the same market.
- Competitive advantage
The advantage one company has over another, or several others.
- Competitive environment
A market which has many competitors.
- Consumer
The person who use the products.
- Consumer income
The amount a person or household has to spend, after paying tax.
- Consumer rights
What the consumer is entitled to by the law.
- Crowdfunding
Where a large number of individuals invest into a business project on internet sites such as Kickstarter.
- Customer
The person who buys the products.
- Customer needs
What the customer wants, these can change over time. E.g. Price, quality, choice or convenience.
- Customer service
Having a clear understanding of customer expectations and delivering.
- Demographics
The characteristics of the population in terms of age and gender.
- Digital communication
Communicating with the customers electronically through things such as a website, social media and email.
- Discrimination
Judging someone based on their age, gender, race, religion or disability.
- Dynamic business.
Businesses responding to what consumers want.
- e-commerce
The use of online systems to sell goods and services.
- Economic climate
The broad performance of the UK economy, as measured by GDP growth.
- Enterprise
The skills shown by an entrepreneur.
- Entrepreneur
A person who organizes resources, makes decisions and takes risks in business, in order to benefit from the potential future rewards.
- Exchange rate
The price of one currency in terms of another. E.g. 1 pound= $2
- Export
Goods or services that a firm produces in its home market. but sells in a foreign market.
- Financial aim
Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.
- Fixed cost
Cost which do not change with output. E.g. Rent or salaries.
- Focus group
Where a mumber of customers are invited to attend a discussion about a product.
- Forecast
A prediction of future finances. E.g. Sales, cash flow or profits.
- Franchise
The right given by one business to another to sell goods and services using its name.
- Franchisee
A business that buys the rights to a franchise
- Franchisor
The person who owns the rights to the franchise.
- Gap in the market
An area of the market, with no products currently being provided.
- Good
Physical items of a business sells. E.g. Bikes, laptops and pens.
- Import
Goods and services that are bought into on country from another
- INflation
A general and persistent rise in prices which reduces purchasing power.
- Insolvency
when a business can no longer afford to pay its debts.
- Interest
The cost of borrowing and the reward of saving. Can be fixed or variable.
- Legislation
Laws passed by acts of parliament.
- 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.
- Location
Where a business locates
- Margin of safety
The amount of products a firm sells over and above the breakeven point
- Marketing mix
The elements of marketing that are designed to meet the needs of the customer. The elements are product , price, place and promotion
- 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.
- Market research
collecting and analyzing data from customers, competitors and the market in general.
- Market segments
An identifiable group of people with similar characteristics. This could be split by location, demographics, lifestyle or income.
- Net cash flow
The difference between cash inflows and cash outflows over a period of time
- Non-financial aim
Aims and objectives that relate to areas other than finance. E.g. Social objectives, personal satisfaction. challenge and control.
- Obsolete
A product which is out of date and no longer used.
- Opening balance
The amount of money the has business has at the start of the current time period.
- Overdraft
With agreement from your bank, taking more out of your account than you actually have, leaving a negative bank balance.
- Partnership
A business organization that is usually owned by 2-20 people, who have unlimited liability.
- 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.
- Place
How the product passes from the producer the the consumer.
- Pressure group
A group with a common interest/goal who work collectively to further the cause.
- Price
The amount charged to the customer for the product.
- Primary research
Research which is being collected for the first time.
- 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.
- Product
The good or service a business is selling
- Product portfolio
The range of products a business sells.
- Profit
The amount left from revenue after costs have been paid.
- 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.
69.Qualitative data
Data which is detailed and contains information about people’s feelings and opinions.
- Quantitative data
Data which is limited in detail, but can easily be put into graphs and charts for analysis.
- Resource
The land, labor and capital used by entrepreneurs, E.g. Buildings, equipment and staff.
- Retained profit
Profit that is ‘ploughed back’ into the business.
- Revenue
The money made from selling a product
- Reward
The return for taking a risk and making its a success
- Risk
A situation or decision that has exposure business failure, financial loss or lack of security.
- Secondary research
The collection of data that already exists but is then used for a business’s own requirements.
- 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.
- Service
Non-physical items a business sells. E.g. Hairdressing, public transport and music streaming.
- Share capital
A way of raising finance through sale of shares.
- Shareholder
A person who owns a ‘share’ in a business.
- Sole trader
A business with a single owner, who has unlimited liability
- 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.
- Stakeholder conflict
When different stakeholder groups have different aims and objectives, which can be difficult for a business to satisfy at the same time
- Target market
The segments of the market you are aiming your product at.
- Taxation
Charges from the government
- Technology
Hardware and software that businesses may use
- Trade credit
A period of time given to a customer between receiving the goods and payment being due.
- Unemployment (Selene)
The number of the people who are looking for work but unable to find any.
- Unique selling point
A characteristic of the product that makes it different from other similar products being sold in the market
- Unlimited liabilty
Where a business and its owners are one and the same, meaning the owners are responsible for all the business debts
- Variable cost
A cost which rises as output rises. E.g. Raw materials or packaging.
- 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.
