Business Key Terms

Question 1

Inferior goods

Answer 1

Are products whose demand falls as income rises

Question 2

Marketing

Answer 2

The process of of identifying, anticipating, and satisfying customer requirements profitably

Question 3

Qualitative research

Answer 3

Usually involves primary research to identify opinions

Question 4

Static markets

Answer 4

A market which stays the same over time

Question 4

Dynamic markets

Answer 4

Markets of which change over time

Question 6

Market growth

Answer 6

An increase in total market sales

Question 7

Current assets

Answer 7

Resources a business expects to sell, use, or turn into cash within 12 months

Question 8

Cash flow

Answer 8

The movement of cash in and out of a business

Question 8

Business plan

Answer 8

A written plan to describe a business

Question 9

Non current liabilities

Answer 9

Are payments / debts that are due to be paid back in more than 12 months

Question 10

Assets

Answer 10

Items owned by a business

Question 11

Break Even

Answer 11

The minimum level of units that must be sold for revenue to cover all costs

Question 14

Price elasticity of demand

Answer 14

Measures the responsiveness of quantity demanded after a change in price

Question 15

Insolvent

Answer 15

When a business must halt trading due to money problems

Question 15

Market research

Answer 15

Systematic collection and analysis of data about potential customers, competitors, the economy, markets and products

Question 16

Complimentary goods

Answer 16

Products of which go together (car and petrol)

Question 17

Total equity

Answer 17

The amount owed by the business to its owners

Question 17

Variable costs

Answer 17

Costs of which change over time

Question 18

Demand

Answer 18

The amount of a product consumers are willing and able to buy at various prices

Question 20

Non Current assets

Answer 20

Are resources a business owns it expects to be kept for more than a year, eg machinery and property

Question 20

Normal goods

Answer 20

Are products whose demands rises as income rises

Question 20

Product orientation

Answer 20

Where a firm focuses their efforts on making a product which they then try to sell

Question 22

External shocks

Answer 22

Events of which are out of control of the business, eg Hurricane, robbery etc

Question 24

Secondary research

Answer 24

Old data that is used for a new purpose by a firm

Question 25

Market orientation

Answer 25

Where firms focus on identifying, anticipating, and satisfying customer requirements

Question 27

Current liabilities

Answer 27

Payments or debts that must be paid within 12 months, such as overdrafts or trade credits

Question 28

Mass marketing

Answer 28

Where the business sells the same product to all consumers in the same way

Question 30

Market size

Answer 30

The total sales of all firms in a given market

Question 32

Substitutes

Answer 32

Alternative products consumers can buy to satisfy a given need

Question 33

Quantitive research

Answer 33

Usually involves secondary research to identify facts

Question 34

Market share

Answer 34

The proportion of total market sales held by a firm or one of its brands

Question 35

Liquidity

Answer 35

How easily an asset can be converted into cash

Question 36

Income elasticity of demand

Answer 36

Measures the responsiveness of demand after a change in consumer income

Question 38

Primary research

Answer 38

Where a firm gathers new information for the first time. Eg a survey

Question 40

Market

Answer 40

A place where buyers and sellers meet to buy products

Question 41

Supply

Answer 41

The amount of a product producers are willing and able to sell at various prices

Question 42

Own price

Answer 42

Selling price of a product

Question 44

Segmentation

Answer 44

Where a business divides a market into sub groups of customers based on there characteristics.

Question 48

Revenue

Answer 48

Income earned by a business from sales over a period of time

Question 49

Indirect costs

Answer 49

Over head costs such as rent

Question 55

Niche market

Answer 55

A small market

Question 58

Direct costs

Answer 58

The costs of making or acquiring products for sale.

Question 59

Fixed costs

Answer 59

Costs of which do not change over time

Question 63

Profit

Answer 63

Amount left over from revenue after paying all costs