Key words Business GCSE Flashcards

1
Q

Definition of adding value

A

How a business sells a product for more than it costs through the processes they apply

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2
Q

Definition of Aims and Objectives

A

Aim: long term goal of a business

Objective: the short term goals that will help a business achieve its aim

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3
Q

Definition of Business Environment

A

The external factors, i.e. the economy, that influence how a business operates

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4
Q

Definition of a Business Plan

A

A document produced by a new or existing company that shows what its objectives are and how it will meet them

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5
Q

Definition of Capital

A

The initial money that is needed to start a business that is linked to purchasing machinery and premises

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6
Q

Definition of cash flow

A

The money that flows in and out of a business

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7
Q

Definition of a cash-flow forecast

A

The prediction of how much money will come into and out of a business over a future time period

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8
Q

Definition of cash inflows

A

The money that comes into a business from sales and investment and other sources

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9
Q

Definition of cash outflows

A

The money leaving a business that it spends on raw materials, labour and other expenses

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10
Q

Definition of closing balance

A

The total cash - flow left at the end of a period

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11
Q

Definition of competition

A

Other businesses that produce the same or similar goods or services

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12
Q

Definition of competitive advantage

A

A business that has a marketing mix strategy which enables it to be more successful than its competitors

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13
Q

Definition of consumer income

A

How much money consumers have to spend on their needs and wants

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14
Q

Definition of consumer law

A

Legal restraints that protect the consumer from unfair business practice

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15
Q

Definition of consumer rights

A

Where consumers are protected by laws in terms of product quality, returning goods, repairs and replacements etc

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16
Q

Definition of consumer spending

A

The level of spending that consumers undertake related to their income

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17
Q

Definition of crowdfunding

A

Finance raised through internet appeals from a large number of small investors aka the general public

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18
Q

Definition of customer service

A

How a business looks after its customers before, during and after they make a purchase

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19
Q

Definition of Demographics

A

Factors related to the population, often used during segmentation

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20
Q

Definition of Discrimination

A

When an employer chooses its worker based on a particular characteristic, many of which are illegal. For example: age, gender, race etc

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21
Q

Definition of dividend

A

The share of the profit received by a shareholder

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22
Q

Definition of Employment Law

A

Legal constraints that protect the employees of a business from unfair business practices

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23
Q

Definition of Enterprise

A

A business that has the objective of making a profit

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24
Q

Definition of fixed costs

A

Business costs that do not vary with output

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25
Q

Definition of a focus group

A

A group of actual potential customers who discuss and take part in market research

26
Q

Definition of a franchise

A

Where a business acquires the rights to use the name and products of another business

27
Q

Definition of a franchisee

A

The business which runs a franchise in a specific area

28
Q

Definition of a franchisor

A

The seller of a right to operate a franchise

29
Q

Definition of a gap in the market

A

An opportunity for a business to provide a good or service that is not currently available

30
Q

Definition of Insolvency

A

Where a business runs out of cash and is not able to obtain new finance

31
Q

Definition of internal finance

A

Finance that is sourced from within the business i.e. retained profit

32
Q

Definition of limited liability

A

The protection enjoyed by shareholders who can only lose the money they have put into the company

33
Q

Definition of a loss

A

Where the costs of a business are greater than it income

34
Q

Definition of Margin of Safety

A

The additional that a business produces or expects to produce more than it breakeven output

35
Q

Definition of market research

A

Information from existing or potential customers about their reaction to the good or service

36
Q

Definition of marketing mix

A

The “ingredients” needed for a business to be successful. Known as the 4P’s they are: Product, Place, Price and Promotion

37
Q

Definition of market segments

A

A way of dividing up the market into different groups of potential customers

38
Q

Definition of obsolete

A

When a type of product is no longer produced because it is no longer needed or has been replaced

39
Q

Definition of overdraft

A

A source of finance for a business where it is allowed to take more money out of its account than it has deposited

40
Q

Definition of overheads

A

Costs or expenses that a business incurs

41
Q

Definition of a Partnership

A

Where a business is started and owned by more than one person, who then share the profits and the responsibilities

42
Q

Definition of a Pressure group

A

A collection of individuals who have a common cause and campaign to achieve it

43
Q

Definition of Primary research

A

First - Hand information gathered by a business about existing and potential customers, for example: surveys, questionnaires etc

44
Q

Definition of a private limited company

A

A company where shares can only be sold to “family and friends”. (Known as Ltd)

45
Q

Definition of a public limited company

A

The kind of limited company whose shares can be bought on the stock exchange. (Known as Plc)

46
Q

Definition of Retained profit

A

A source of finance based on money that a business keeps back after paying shareholders dividends and giving owners a share of the profit

47
Q

Definition of secondary research

A

Already existing information and existing and potential customers. For example, census, internet etc

48
Q

Definition of segmentation

A

A way of dividing up the market into different categories of potential customers

49
Q

Definition of selling assets

A

When a business sells its land, buildings, machinery, or equipment that are no longer needed to raise additional finance

50
Q

Definition of share capital

A

The money raised by the business from selling shares

51
Q

Definition of a shareholder

A

An owner of a company who receives a dividend as a return for their investment

52
Q

Definition of a sole trader

A

Where a business is started and owned by one person who keeps all the profits, but holds all the responsibilities

53
Q

Definition of a stakeholder

A
An individual or group that is directly or indirectly affected by the actions of the business.
9 types of stakeholders are:
- Customers
- Owners
- Managers 
- Employees 
- Government 
- Local community
- Pressure Groups
- Suppliers
- Shareholders
54
Q

Definition of survival

A

A business objective where continuing in existence becomes the short term goal

55
Q

Definition of Trade credit

A

Where a business orders and receives supplies, but pays them back at a later date

56
Q

Definition of Unique Selling Point (USP)

A

What makes a business’ goods or services different from competitors

57
Q

Definition of unlimited liability

A

If a business becomes bankrupt, sole traders and partnerships are personally liable for their business’s debts

58
Q

Definition of variable costs

A

Business costs that change with output, such as raw materials

59
Q

Definition of venture capital

A

A source of finance normally for small businesses where the venture capitalist takes a stake in the business

60
Q

Define Sole Trader

A

One person who is the exclusive owner of the business, entitled to keep all profits after tax has been paid but liable for all losses