Introduction to Business Flashcards
What is a market share?
The share of the total market that is owned by a particular business, product or brand.
What is a competitive advantage?
An advantage over competitors is gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and services that justify higher prices.
What is a marketing mix?
The way in which a business uses price, product, distribution and promotion to market and sell its product.
What are total costs?
The fixed costs combined with the total variable costs.
What are variable costs?
Costs that change in relation to output. These are lower risk for starting up businesses as no sales = no variable costs.
What are variable costs?
Costs that do not change in relation to output. Fixed costs increase the risk of a start-up.
What are some examples of variable costs?
raw materials, piece-rate labor, production supplies.
What are tactics?
The short term components of a business plan, focused on quickly responding to opportunities and threats
What is a strategy?
The long-term business plan, based on the business vision and mission
What are stakeholders?
Anyone who is affected by or interested in the actions of a business
What is motivation?
The “Will to work” of employees which comes from the desire to achieve certain goals.
What are ethics?
The moral rights and wrongs of any decision a business makes
What is branding?
The process of making a product easily distinguishable from other products so that it can be easily communicated and effectively marketed
What is the legal structure of a business?
The fundamental way a business operates
What is limited liability?
Where the owners are only responsible for the amount they have invested or promised to invest
What is unlimited liability?
The personal assets of the owners that are at risk
What is a private limited company?
A business that is is owned by its shareholders, run by directors, where the liability of the shareholders for the debts of the company is limited.
What is a public limited company?
A company that is able to offer its shares to the public.
What is market segmentation?
The process of categorising customers into groups with similar characteristics
What is a socio-economic group?
A person’s position in society according to their economic and social status
What are external influences?
The factors beyond a company’s control that affect operations and success.
What is demand?
The amount of a product or service that customers are willing and able to pay for at a given time.
What is advertising?
Any paid-for method of promotion
What is sponsorship?
The process of a business financially supporting an event, team or individual in order to build brand awareness
