Business Key Terms Flashcards
Inferior goods
Are products whose demand falls as income rises
Marketing
The process of of identifying, anticipating, and satisfying customer requirements profitably
Qualitative research
Usually involves primary research to identify opinions
Static markets
A market which stays the same over time
Dynamic markets
Markets of which change over time
Market growth
An increase in total market sales
Current assets
Resources a business expects to sell, use, or turn into cash within 12 months
Cash flow
The movement of cash in and out of a business
Business plan
A written plan to describe a business
Non current liabilities
Are payments / debts that are due to be paid back in more than 12 months
Assets
Items owned by a business
Break Even
The minimum level of units that must be sold for revenue to cover all costs
Price elasticity of demand
Measures the responsiveness of quantity demanded after a change in price
Insolvent
When a business must halt trading due to money problems
Market research
Systematic collection and analysis of data about potential customers, competitors, the economy, markets and products
Complimentary goods
Products of which go together (car and petrol)
Total equity
The amount owed by the business to its owners
Variable costs
Costs of which change over time
Demand
The amount of a product consumers are willing and able to buy at various prices
Non Current assets
Are resources a business owns it expects to be kept for more than a year, eg machinery and property
Normal goods
Are products whose demands rises as income rises
Product orientation
Where a firm focuses their efforts on making a product which they then try to sell
External shocks
Events of which are out of control of the business, eg Hurricane, robbery etc
Secondary research
Old data that is used for a new purpose by a firm
