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Business flash cards > Key terms > Flashcards

Key terms Flashcards

1
Q

Objective

A

the short-term steps a business needs to take to meet its overall aims

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2
Q

Aim

A

the overall long-term target or goal of the business

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3
Q

Example aims

A

make £120,000 profit
get a market share of 50%

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4
Q

Business growth

A

Business growth is where a business grows organically or inorganically.

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5
Q

Internal/organic growth

A

Internal/organic growth is where a business grows by selling more products/their service

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6
Q

External/inorganic growth

A

External/inorganic growth is where a business grows by merging/taking over another business

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7
Q

Backwards vertical growth

A

This is where the seller purchases a supplier

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8
Q

Forwards vertical growth

A

This is where a supplier purchases a seller

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9
Q

Diversification

A

This is where a business invests in something it has no relation to

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10
Q

Horizontal growth

A

Horizontal growth is where a business purchases another business at the same level as themselves.

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11
Q

Business plan

A

A business plan is a document that outlines what a business wants to achieve and how it will achieve it.

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12
Q

Capital

A

Capital is the money raised from selling shares

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13
Q

Dividend

A

A dividend is money received by individuals from owning shares given by a business.

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14
Q

Entrepreneur

A

An entrepreneur is someone who takes the risk of starting up a business.

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15
Q

Characteristics of an entrepreneur

A

Risk taker
Determined
Creative
Confident

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16
Q

Stakeholders

A

A stakeholder is someone with an interest in the running of a business they can be external where they are outside of the business and don’t work for them if inside the business and works for it.

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17
Q

Examples of internal stakeholders

A

Owner(s)
Workers
Managers

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18
Q

Examples of external stakeholders

A

Government
Local community
Customers

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19
Q

Sole trader

A

Someone who runs a business by themselves.

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20
Q

Advantages of sole traders

A

Keep all profits to yourself able to make own decisions

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21
Q

Disadvantages of sole traders

A

Hard to get time off unlimited liability

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22
Q

Partnership

A

Where 2-20 people run a business together.

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23
Q

Advantages of Partnership

A

Shared workload
Easier to get time off

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24
Q

Disadvantages of Partnership

A

Shared profits
May take longer to make decisions
Unlimited liability

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25
Q

Private Limited Company - LTD

A

Shares are given to people who you know

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26
Q

Advantages of LTD

A

Limited liability
No worry from a merger/takeover

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27
Q

Disadvantages of LTD

A

Dividends have to be payed.
Capital can’t be easily raised

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28
Q

Public Limited Company - PLC

A

Shares are sold on the stock exchange

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29
Q

Advantages of PLC

A

Capital can be raised easily
Unlimited liability

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30
Q

Disadvantages of PLC

A

At risk of a takeover
Expensive to set up.

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31
Q

Limited Liability

A

Where the bank is limited to only taking business owned assets to pay of any bankruptcy a business may have incurred

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32
Q

Unlimited Liability

A

Where a bank can take personal assets to pay off any bankruptcy a business may have incurred

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33
Q

Limited Liability Partnership

A

Where a partnership has limited liability

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34
Q

Marketing

A

How a business advertises its products/services

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35
Q

Merger

A

Where two business agree to become one

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36
Q

Market Share

A

How much of the market they control/influence

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37
Q

Takeover

A

Where a company forcibly takes over another company by purchasing a controlling share of a business shares.

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38
Q

Operate

A

The activities, processes and systems that a company uses to deliver its products or services to customers and achieve its business objectives

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39
Q

Profit

A

How much money a business makes after costs have been included.

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40
Q

Providing a service

A

Where a business doesn’t sell a physical product but offers something else like a gardening service.

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41
Q

Resources

A

What a business needs to operate successfully.

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42
Q

Satisficing

A

Where business is making enough profit to keep shareholders happy or it’s sufficient for investors to maintain confidence in the management they appoint.

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43
Q

Shareholders

A

Someone who owns shares in a Public Limited Company or Ltd.

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44
Q

Sleeping partner

A

Someone who invests in a business but doesn’t interfere with the running.

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45
Q

Spotting an opportunity

A
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46
Q

Survival

A

Where a business is bandy managing to survive and continue trading.

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47
Q

Success

A

Where the business owner is earning a good income to pay for utilities and leisure.

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48
Q

Market research

A

Where a company undertakes research to see if the market would like a certain product and to give them data on it.

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49
Q

Primary market research

A

Market research done by the company themselves

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50
Q

Advantages of primary market research

A
  • More accurate and relevant to the business
  • Higher quality
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51
Q

Disadvantages of primary market research

A
  • More expensive
  • Longer
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52
Q

Secondary market research

A

Market research where someone else has collected the data and you are using it.

53
Q

Advantages of secondary market research

A
  • Cheaper
  • Shorter Time frame
54
Q

Disadvantages of Secondary Market Research

A
  • Less accurate
  • less relevant to the business
55
Q

Questionnaire

A

Where you ask people questions to determine what they think/want

56
Q

Trials

A

A temporary offering to test the success of a new product

57
Q

Focus groups

A

A research technique used to collect data through group interaction.

58
Q

Census data

A

A document that counts the population of a nation, state, or other geographic region

59
Q

Interview

A

Where you ask people face to face questions about a certain topic/a product.

60
Q

Quantitative market research

A

Numerical data such as sales or revenue

61
Q

Qualitative market research

A

Worded data such as answers to questions or reviews.

62
Q

Marketing

A

How a business promotes a product.

63
Q

The 4P’s

A

Price
Promotion
Product
Place

64
Q

Promotion

A

How a business creates awareness of their product

65
Q

Advertising Campaign

A

What a business uses to launch their products and create awareness

66
Q

Advertising media

A

What forms of media a business may use to promote their product

67
Q

Point of Sale Promotion

A

Why a business is selling a product and what its for.

68
Q

Price

A

How much a business charges for their product.

69
Q

Competitor pricing

A

Where you charge the same as competitors with a simialar product.

70
Q

Cost-plus pricing

A

Where you sell the product for the cost it was to make plus a percentage of the cost to manufacture it.

71
Q

Penetration pricing

A

Where you price your product less than competitors products.

72
Q

Price skimming

A

Where you charge a high initial price to begin with but gradually lower it over time.

73
Q

product

A

What your selling.

74
Q

Design

A

What it looks like and how it works.

75
Q

Innovation

A

Redesigning a pre-existing product.

76
Q

Product life-cycle

A

The stages a product goes through before becoming obsolete.

77
Q

Introduction

A

When a product is first launched.

78
Q

Growth

A

Starting to get more sales for the product and advertising starting to decrease.

79
Q

Maturity

A

The product is getting many more new sales and is nearing the decline.

80
Q

Decline

A

When a product starts to lose popularity/sales and is removed from the market.

81
Q

Extension strategy

A

What a business can do to keep the product going for longer before retiring it.

82
Q

Place

A

Where you are going to sell your product.

83
Q

Digital distribution

A

Where you sell a digital product and how you get that product to the customer.

84
Q

Physical distribution

A

Where you sell a physical product and how you get that product to the customer.

85
Q

Market data

A

Information on the market.

86
Q

Application form

A

What an applicant fills out to try and succeed in getting a job/accepted

87
Q

Apprenticeship

A

Where an someone (generally a student) makes a deal with a company in return for working for them and going to a university/college to gain skills/qualifications to benefit the business

88
Q

Authority

A

The ability to give orders to others and have the orders followed out.

89
Q

Accountability

A

What you can be held responsible for.

90
Q

Award scheme

A

How a business may motivate their employees to do even better and get something in return

91
Q

Bonus

A

An extra amount of money on top of your wage/salary.

92
Q

Chain of Command

A

Who you have authority over and are in charge of.

93
Q

Communication

A

How a business relays different messages between employees.

94
Q

Contract of Employment

A

A document stating what your job, roles and responsibilities and pay are in the business.

95
Q

Customer Service

A
96
Q

CV

A

What you submit to an employer to try and convince them you are good for the job.

97
Q

Delegation

A

Where you give someone else the job who is lower down the chain of command than you.

98
Q

Development

A

The growth of a business to become larger and more well known.

99
Q

Digital Communication

A

How a business communicates using digital devices (E-mails, Calls etc)

100
Q

Discrimination

A

Where a business is unfair to an employee due to a disability, race, religion, gender etc

101
Q

Employment agency

A

Where an external company employees people for a business on their behalf.

102
Q

Employment Law

A

A law that protects employees from unfair treatment

103
Q

Employment Tribunal

A
104
Q

External communication

A

Where a business communicates with someone outside the business

105
Q

External recruitment

A

How a business recruits someone who is outside the business.

106
Q

External methods of recruitment

A
  • Adverts
  • Social Media
107
Q

Feedback

A

The comments and opinions of customers on products/service

108
Q

Flexible working

A

Being able to work with little-no rigidity

109
Q

Skills gap

A

Where a business doesn’t have the skills to keep the business running efficiently

110
Q

Skills shortage

A

Where the business has a limited workforce who have the skills needed in the business.

111
Q

Social media

A

The platform where companies are able to advertise their products easily.

112
Q

Span of control

A

How much control over other employees someone has.

113
Q

Statement of employment particulars

A

A document that summarises the main terms of employment for workers.

114
Q

Subordinates

A

Who you are in charge of

115
Q

Temporary working

A

Where you are not working for permanent but for a short period of time.

116
Q

Tests

A

What a business may do to see if you are a suitable candidate.

117
Q

Purpose of HR

A

To manage employees and workers

118
Q

Trade union

A

A group of people within a business to ensure a fair pay and job.

119
Q

Training

A

What a business may do to get more skills in the business.

120
Q

Turnover of labour

A

The rate at which business employees leave the business and get replaced.

121
Q

Verbal communication

A

Communication through speaking and talking.

122
Q

Vertical communication

A

Communication up and down the chain of command

123
Q

Website

A

A place on the internet a business owns and can advertise their products

124
Q

Working environment

A

Where an employees works and the surroundings they work in.

124
Q

Working time directive

A

The law in the UK that states an employee can only be made to work for 48 hours a week unless they agree to more

125
Q

Mobile working

A

Where you work in multiple places and on the move.

126
Q

Written communication

A

Communication through notes, letters and physical items.

127
Q

Zero hour contracts

A

Where someone isn’t guaranteed work but when its available they can do it.

Business flash cards (4 decks)

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