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
Market orientation
Where firms focus on identifying, anticipating, and satisfying customer requirements
Current liabilities
Payments or debts that must be paid within 12 months, such as overdrafts or trade credits
Mass marketing
Where the business sells the same product to all consumers in the same way
Market size
The total sales of all firms in a given market
Substitutes
Alternative products consumers can buy to satisfy a given need
Quantitive research
Usually involves secondary research to identify facts
Market share
The proportion of total market sales held by a firm or one of its brands
Liquidity
How easily an asset can be converted into cash
Income elasticity of demand
Measures the responsiveness of demand after a change in consumer income
Primary research
Where a firm gathers new information for the first time. Eg a survey
Market
A place where buyers and sellers meet to buy products
Supply
The amount of a product producers are willing and able to sell at various prices
Own price
Selling price of a product
Segmentation
Where a business divides a market into sub groups of customers based on there characteristics.
Revenue
Income earned by a business from sales over a period of time
Indirect costs
Over head costs such as rent
Niche market
A small market
Direct costs
The costs of making or acquiring products for sale.
Fixed costs
Costs of which do not change over time
Profit
Amount left over from revenue after paying all costs
