key terms Flashcards

1
Q

Financially viable

A

High enough profit margin to be a successful business

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2
Q

Product portfolio

A

The range of products offered

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3
Q

Saturated market

A

High competition, consumers can analyse and compare prices
Forced to have lower prices , less chance of success and profit

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4
Q

Competitive environment

A

And it’s effect on business decisions

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5
Q

Income stream (of a business)

A

regular income received by the business, either from customers or investment income

Eg: customers purchasing treats
Customers ordering celebration cakes
Selling cakes to a local cafe

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6
Q

Insolvent

A

Unable to pay it’s debts / owes more money that owed

  • a business should be solvent
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7
Q

Unincorporated

A

A business not registered as a company, so it the eyes of the law the owners and the business are the same
Prone to (unlimited liability)

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8
Q

Incorporated

A

Register as a company and so has limited liability

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9
Q

National Living wage

A

The minimum wage

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10
Q

Bulk gaining product

A

At the end , is bigger than the raw materials used to make it
Eg: bike
Would allocate closer to market, to reduce transportation costs.
As is cheaper to deliver small stuff from suppliers to you , than to deliver big bikes from yourself to consumers

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11
Q

Bulk reducing product

A

A product that is smaller than the raw materials it uses.
Eg: paper
Then be located closer to suppliers, as is silly to transport the tree all the way to you , as opposed to small paper packets to consumer

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12
Q

Convenience good

A

A product frequently bought from consumer , doesn’t need much thought
Eg :bread
Then place yourself away from competitors

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13
Q

Shopping good

A

A product that the consumer takes time to consider before purchasing. Not brought frequently, ready to make the trip
Eg: cars
Place nearer to competitors, as the ‘are’ will attract more customers

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14
Q

Product differentiation

A

Designing a product with unique features that distinguish it from similar products sold by competitors

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15
Q

Brand loyalty

A

Willing to buy a product over competitors, encouraged through brand awareness

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16
Q

Market share

A

The percentage of sales of a product , taken by a market

17
Q

recession

A

When consumers reduce the amount that they spend

18
Q

Business plan

A

Includes financial forecasts, and how an entrepreneur is going to set up a business

19
Q

Legislation

A

The laws of a country

20
Q

Employement law

A

The way within which employees are hired and treated by businesses
Otherwise business illegal and can be sued