Key words Business GCSE Flashcards
Definition of adding value
How a business sells a product for more than it costs through the processes they apply
Definition of Aims and Objectives
Aim: long term goal of a business
Objective: the short term goals that will help a business achieve its aim
Definition of Business Environment
The external factors, i.e. the economy, that influence how a business operates
Definition of a Business Plan
A document produced by a new or existing company that shows what its objectives are and how it will meet them
Definition of Capital
The initial money that is needed to start a business that is linked to purchasing machinery and premises
Definition of cash flow
The money that flows in and out of a business
Definition of a cash-flow forecast
The prediction of how much money will come into and out of a business over a future time period
Definition of cash inflows
The money that comes into a business from sales and investment and other sources
Definition of cash outflows
The money leaving a business that it spends on raw materials, labour and other expenses
Definition of closing balance
The total cash - flow left at the end of a period
Definition of competition
Other businesses that produce the same or similar goods or services
Definition of competitive advantage
A business that has a marketing mix strategy which enables it to be more successful than its competitors
Definition of consumer income
How much money consumers have to spend on their needs and wants
Definition of consumer law
Legal restraints that protect the consumer from unfair business practice
Definition of consumer rights
Where consumers are protected by laws in terms of product quality, returning goods, repairs and replacements etc
Definition of consumer spending
The level of spending that consumers undertake related to their income
Definition of crowdfunding
Finance raised through internet appeals from a large number of small investors aka the general public
Definition of customer service
How a business looks after its customers before, during and after they make a purchase
Definition of Demographics
Factors related to the population, often used during segmentation
Definition of Discrimination
When an employer chooses its worker based on a particular characteristic, many of which are illegal. For example: age, gender, race etc
Definition of dividend
The share of the profit received by a shareholder
Definition of Employment Law
Legal constraints that protect the employees of a business from unfair business practices
Definition of Enterprise
A business that has the objective of making a profit
Definition of fixed costs
Business costs that do not vary with output