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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
Definition of a focus group
A group of actual potential customers who discuss and take part in market research
26
Definition of a franchise
Where a business acquires the rights to use the name and products of another business
27
Definition of a franchisee
The business which runs a franchise in a specific area
28
Definition of a franchisor
The seller of a right to operate a franchise
29
Definition of a gap in the market
An opportunity for a business to provide a good or service that is not currently available
30
Definition of Insolvency
Where a business runs out of cash and is not able to obtain new finance
31
Definition of internal finance
Finance that is sourced from within the business i.e. retained profit
32
Definition of limited liability
The protection enjoyed by shareholders who can only lose the money they have put into the company
33
Definition of a loss
Where the costs of a business are greater than it income
34
Definition of Margin of Safety
The additional that a business produces or expects to produce more than it breakeven output
35
Definition of market research
Information from existing or potential customers about their reaction to the good or service
36
Definition of marketing mix
The "ingredients" needed for a business to be successful. Known as the 4P's they are: Product, Place, Price and Promotion
37
Definition of market segments
A way of dividing up the market into different groups of potential customers
38
Definition of obsolete
When a type of product is no longer produced because it is no longer needed or has been replaced
39
Definition of overdraft
A source of finance for a business where it is allowed to take more money out of its account than it has deposited
40
Definition of overheads
Costs or expenses that a business incurs
41
Definition of a Partnership
Where a business is started and owned by more than one person, who then share the profits and the responsibilities
42
Definition of a Pressure group
A collection of individuals who have a common cause and campaign to achieve it
43
Definition of Primary research
First - Hand information gathered by a business about existing and potential customers, for example: surveys, questionnaires etc
44
Definition of a private limited company
A company where shares can only be sold to "family and friends". (Known as Ltd)
45
Definition of a public limited company
The kind of limited company whose shares can be bought on the stock exchange. (Known as Plc)
46
Definition of Retained profit
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
Definition of secondary research
Already existing information and existing and potential customers. For example, census, internet etc
48
Definition of segmentation
A way of dividing up the market into different categories of potential customers
49
Definition of selling assets
When a business sells its land, buildings, machinery, or equipment that are no longer needed to raise additional finance
50
Definition of share capital
The money raised by the business from selling shares
51
Definition of a shareholder
An owner of a company who receives a dividend as a return for their investment
52
Definition of a sole trader
Where a business is started and owned by one person who keeps all the profits, but holds all the responsibilities
53
Definition of a stakeholder
``` 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
Definition of survival
A business objective where continuing in existence becomes the short term goal
55
Definition of Trade credit
Where a business orders and receives supplies, but pays them back at a later date
56
Definition of Unique Selling Point (USP)
What makes a business' goods or services different from competitors
57
Definition of unlimited liability
If a business becomes bankrupt, sole traders and partnerships are personally liable for their business's debts
58
Definition of variable costs
Business costs that change with output, such as raw materials
59
Definition of venture capital
A source of finance normally for small businesses where the venture capitalist takes a stake in the business
60
Define Sole Trader
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

Business (18 decks)

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