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business revision Flashcards

1
Q

Supplier

A

A business which sells (or supplies) products to another business.

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2
Q

What is the difference between a customer and consumer?

A

Any person or organisation which buys or is supplied with a product or by a business.

The person who ultimately uses (or consumes) a product.

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3
Q

What is the difference between customer needs and customer wants?

A

Value for money, Disability access, Good quality,

Safe environment.

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4
Q

What is? The gathering of new information which has not been collected before. E.g Survey, focus group, interview

A

Primary (or field) research

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5
Q

Survey vs. Questionnaire?

A

Research involving asking questions of people or organisations.

A list of questions to be answered by respondents, designed to gather information about consumers’ tastes.

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6
Q

What are respondents?

A

Those who provide data for a survey usually by answering questions in a questionnaire or interview.

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7
Q

In market research, a group of people brought together to answer questions and discuss a product, brand or issue.

A

Focus group

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8
Q

Information that has already been gathered e.g sales records, government statistics, newspaper articles. What is this called?

A

Secondary (or desk) research

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9
Q

What is the difference between Qualitative and Quantitative data?

A

Information about opinions, judgments and attitudes. E.g interviews, focus groups, questionnaires.

Data that can be expressed as numbers and can be statistically analysed. E.g survey, sales data.

Quality and Quantity!

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10
Q

What is a market segment?

A

Part of a market that contains a group of buyers with similar buying habits, such as age or income.

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11
Q

When the price is very important in the decision about whether or not to buy. What is the key term?

A

Price sensitive

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12
Q

What is a Market Map (Perceptual Map or Positioning Map)

A

A diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality.

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13
Q

What is a Gap in the market?

A

Occurs when no business is currently serving the needs of customers for a particular product.

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14
Q

A group of similar products made by a business like a number of different soap products. What is the Key term?

A

Product range

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15
Q

What is a Brand?

A

A named product which customers see as being different from other products and which they can associate or identify with.

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16
Q

Added Value

A

The increase worth that a business creates for a product; it is the difference between what a business pays to its suppliers and the price that is able to charge for the product/ service.

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17
Q

What is a Unique selling point or USP?

A

A characteristic of a product that make it different from other similar products being sold in the market such as design, quality or image.

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18
Q

What is the difference between a Franchise, Franchisee and a franchiser.

A

The right given by one business to another to sell goods or services using its name.

A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchiser.

The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment.

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19
Q

What would you call a person who owns and runs their own business and takes risks.

A

Entrepreneur

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20
Q

What is a enterprise?

A

A willingness by an individual or a business to take risks, show initiative and undertake new ventures.

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21
Q

What is the difference between Goods and Services?

A

Physical, tangible products like a car, a pair of scissors or a television set.

Non-physical, intangible products like a taxi journey, a haircut or a television programme.

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22
Q

What is an Competitive Advantage?

A

An advantage a business has that enable it to perform better than its rivals in the market and which is both distinctive and defensible.

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23
Q

Thinking differently to try and find new and unexpected ideas. What key term is this?

A

Lateral Thinking

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24
Q

A technique of creative thinking where participants are encourage to think of as many ideas as possible about an issue or a problem. What key term is this?

A

Blue Skies Thinking

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25
Invention vs. Innovation?
The discovery of new processes and potential new products, typically after a period of research. The process of transforming inventions into products that can be sold to customers.
26
What is a Patent?
Right of ownership of an invention or process when it is registered with the government.
27
What is CopyRight?
Legal ownership of material such as books, music and films which prevents these being copied by others.
28
What is the difference between Patent and Copyright?
Right of ownership of an invention or process when it is registered with the government. Legal ownership of material such as books, music and films which prevents these being copied by others.
29
What is a Trademark?
The symbol, sign, or other features of a product or business that can be protected by law.
30
What key term is this? The probability of a negative event occurring.
Calculated Risk
31
What are financial objectives?
Targets expressed in money terms such as making a profit, earning income or building wealth.
32
What do the letters in "SMART" stand for?
Specific, measurable, achievable, realistic and timed.
33
``` What are? Revenues Sales Revenue Turnover Sales Turnover ```
The amount of income received from selling goods or services over a period of time.
34
What is the Total Revenue Formula?
TR = P x Q | Total Revenue = Price x Quantity
35
What is Sales volume?
The number of items or products or services sold by a business over a period of time.
36
What is the difference between Fixed costs and Variable costs?
Costs which do not vary with the output produced such as rent, business rates, advertising costs, administration costs and salaries. Costs which change directly with the number of products made by a business such as the cost of buying raw materials.
37
What is the Total cost Formula?
TC = FC + VC | Total Costs = Fixed Costs + Variable Costs
38
What is Total Costs?
All the costs of a business; it is equal to fixed costs plus variable costs.
39
What is profit?
Occurs when the revenues of a business are greater than its costs over a period of time.
40
What is the formula for Profit?
TR - TC = P
41
What is cash flow?
The flow of cash into and out of a business.
42
What are inflows?
The cash flowing into a business, its receipts.
43
What are outflows?
The cash flowing out of a business, its payments.
44
What is net cash flow?
The receipts of a business minus its payments.
45
What is the formula for net cash flow?
Inflows – Outflows = Net Cash Flow.
46
What is it called when, When a business can no longer pay its debts?
Insolvency
47
What is a Cash Flow Forecast?
A prediction of how cash will flow through a business in a period of time in future.
48
What is the difference between a opening balance and a closing balance?
The amount of money in a business at the start of the month. The amount of money in a business at the end of the month.
49
Where a supplier gives a customer a period of time to pay a bill (or invoice) for goods or services once they have been delivered. What key term is it?
Trade Credit
50
What are stocks?
Materials that a business holds. Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers.
51
What is long term finance?
Sources of money for businesses that are borrowed or invested typically for more than a year.
52
What is Short term finance?
Sources of money for businesses that may have to be repaid with immediately or fairly quickly.
53
Examples of long term finance?
overdraft, usually within a year. bank loans, bonds, leasing. Debentures, mortgage,
54
Examples of short term finance?
overdraft facility,Trade credits, Factoring.
55
Money that has been set aside and not spent by individuals and households. What type of finance is this?
Personal Savings
56
What is share capital?
The monetary value of a company which belongs to its shareholders, for example, if five people each invest £10,000 into a business, the share capital will be £50,000.
57
What are shareholders?
The owners of a company.
58
What is a venture capitalist?
An individual or company which buys shares in what they hope will be a fast growing company with a long term view of selling the shares at a profit.
59
Borrowing a sum of money which has to be repaid with interest over a period of time, such as 1-5 years. What type of finance is this?
loan.
60
Assets owned by a business which are used to guarantee repayments of a loan; if the business fails to pay off the loan, the lender can sell what has been offered as security. What key term is this?
Security or collateral.
61
What type of finance is this? A loan where property is used as security.
Mortgage.
62
What is a dividend?
A share of the profits of a company received by shareholders who own shares.
63
What is retained profit?
Profit which is kept back in the business and used to pay for investment in the business.
64
What key term is this, Renting equipment or premises. ?
Leasing
65
What is an Overdraft facility?
Borrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn.
66
What is factoring?
A source of finance where a business is able to receive cash immediately for the invoices it has issued from a factor, such as a bank, instead of waiting the typical 30 days to be paid.
67
What is a marketing mix?
The combination of factors which help the business to take into account customer needs when selling a product – usually summarised as the 4 Ps, which are price, product, promotion and place.
68
What are the four p's?
price, product, promotion and place.
69
The amount of money customers have to give up to acquire a product. What is the key term?
Price
70
What is a product?
A good or service produced by a business or organisation and made available to customers for consumption.
71
What is promotion?
Communication between the business and customer, making the customer aware that the product is for sale, telling or explaining to them what is the product, making the customers aware of how the product will meet the customers’ needs and persuading them to buy it for the first time or again.
72
The way in which a product is distributed – how it gets from the producer to the consumer, What is the key term?
place
73
What is a Sole trader (or sole proprietor)
The only owner of a business which has unlimited liability.
74
What is another way to call a sole trader?
sole proprietor
75
What is unlimited liability?
A legal obligation on the owner of a business to settle (pay off) all debts of the business. In law there is no distinction between what the business owes and owns and what the business owns and owes.
76
What is limited liability?
When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company.
77
Who is responsible for collecting tax in the UK ?
HM Revenues and Customs (HMRC)
78
What is VAT Valued Added Tax?
A tax on the value of sales: it is paid by businesses to government.
79
What is Income tax?
A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.
80
What is National Insurance Contributions (NICs)?
A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.
81
What is Corporation Tax ?
A tax on the profits of limited companies.
82
What is Customer Service ?
The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.
83
What is a measure of how much products meet customers’ expectations?
Customer satisfaction
84
What key term is this? Orders or sales that occur from customers who have bought the product or service in the past.
Repeat purchases (or repeat business)
85
What is a stakeholder?
An individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful.

Business REV FINANCE (1 decks)

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