Key Terms Flashcards
What is a franchise?
When a franchisor sells an existing business idea to a franchisee.
What is a royalty?
The percentage of profits that are paid to the franchisor.
What does unlimited liability mean?
This means that the owner of the business is responsible for all of the debt of the business.
What is batch production?
When the same product is made together e.g. Baker bakes 50 white loaves before moving onto 50 brown loaves of bread.
What is job production?
When a product is made individually before moving onto the next product e.g. Building a home.
What is flow production?
When the same product is produced hundreds of times, e.g. Coco cola
What is a niche market?
The subset of a wider market e.g. Shoe market: trainers,flip flops.
What is a niche product?
It is a segment of a much larger product e.g. Trainers.
What is piece rate?
It is the amount paid to the worker for producing a certain amount of units e.g. One unit one pound
