definitions Flashcards
what is break even?
Break-even is the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss.
what is production?
manufacturing of finished goods
what does indirect competition mean
Different businesses make or sell products that are not in
direct competition but compete for the same customer
experience e.g. Netflix and the local cinema
what is a dynamic market?
A market that is subject to rapid/continuous change.
what is focus groups?
A group of people who participate in a discussion as part of
market research to give feedback about a product or service — primary research
what is primary research?
Obtaining data first hand by the business to match the
specific needs of the business. It can also be known as field
research
what is market segmentation?
Dividing a whole market into particular customer groups that
have similar characteristics
what is market orientation?
When a business’s products/services are based around the
needs and wants of the customer.
what is product orientation?
When a business prioritises a product’s design quality or
performance rather than meeting customer preferences to
guide production and marketing decisions
free market economy?
No government control over factors of production
what does monopoly mean
Business which controls all of the market for a product
Limited Liability meaning
The owners of a company cannot be held responsible for the debts of the company they own and their liability is only limited to the investment they made in buying the shares
Unincorporated Business meaning
One that does not have a separate legal identity
dividends meaning?
Payments made to shareholders from the profits of a company after it has paid corporation tax. They are the return to the shareholders for investing in the business
Franchise meaning?
A business based upon the use of the brand names, promotional logos and trading methods of an existing successful business
Fiscal Policy meaning?
Any change by the government in tax rates or public sector spending
non-current liabilites meaning?
debts due after 12 months
current liabilities meaning?
debts due within a year, 12 months.
Import Tariff meaning?
A tax on an imported product
contract of employment meaning?
Legal agreement between employer and employee listing the rights and responsibilities of the workers
what is contribution?
The selling price minus variable cost
what is liquidity?
Ability of a business to pay back its short-term debts
what is capital expenditure?
Money spent on fixed assets which will last longer than a year
what is revenue expenditure?
Money spent on day-to-day expenses which do not involve the purchase of a long-term asset
What is tariff?
a duty paid on imports
what is trade union?
an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests
