Definitions Flashcards
Asset
Any item of value that a business owns
Bank overdraft
a bank facility that allows an account holder to borrow money at short notice
Biased
Unbalanced/inclined to agree with one idea
Brand loyalty
customers willingness to buy your products rather than your competitors
Business paln
document that outlines how an entrepreneur will set up a new business
Competitive advantage
a unique and sustainable advantage over competitors
Consumer
A buyer and user of products
Convenience
a product’s ability to fit in with consumer lifestyle, its simplicity and easiness to reach
Customer base
clients who buy your product, mainly repeat customers
Demographics
The structure of a population
Differentiate
make a product different to competitors products
E-commerce
Using the intenet for business transactions
Enterprise
a person/organisation that produces goods to meet customer needs
Entrepreneur
a business creator, someone who takes a risk to make a profit
E-tailing
selling to customers via the Internet
Exports/imports
The flow of products out and in/into and out of countries
Innovation
changing an existing product/process
Interest
cost of borrowing/% of extra money paid back from loan
invention
creating something entirely new
Investment
putting money into a business for profit in the long-term
Legislation
laws that businesses MUST follow
Logistics
organisation/management of the transport of materials and goods
Market research
process of getting info about a market and customer needs to inform business decisions
Market share
proportion of sales in a market from one business
Motivated
when employees have reason to work well->higher productivity
Partnership
a business owned by 2+ people who share risk, decisions and profits
Pressure group
A group who try to infuence governments/businesses for a cause
Price point
the point on a scale of possible prices that the business chooses
Private limited company
incorporated business owned by select stakeholders who invest for dividends and some ownership
Profit margin
proportion of revenue left after costs have been deducted
Public limited company
an incorporated business that can sell shares to the public
Reasonable care
taking enough care to make a product suitable for customers
Redundancy procedures
the process of a business stopping employment of some staff due to their needlessness
Reliable (data)
representative of the group as a whole
Repeat purchases
products repeatedly purchased by the same customer group
Retailing
selling products to customers in a physical shop
Reward
the money that an entrepreneur/investor receives from business success
Risk
possibility of an enterprise having lower than expected profits/makes a loss
Social media
websites/apps that allow users to interact with other users, through text, pictures or links
Span of control
number of employees managed by a manager
Start-up
a new business with a low number of employees
Stock
products held by a business in a shop/warehouse
Stock exchange
a place where PLC shares can be bought/sold (eg. London Stock Exchange, Wall Street)
USP
an aspect of a product that stands out from competitors
