Lesson 1 Flashcards
What is innovation
Innovation is changing an existing product to make it better
What is an entrepreneur
An entrepreneur is someone who sets up a business in hope of profit
Revenue
Sales x Saleprice (math) definition is the money that you take into your business.
Fixed costs
Costs that don’t change
Variable costs
Costs that change depending on the amount of products sold
Profit
Revenue - total costs.
Dividends
A portion of money that goes to the investors and is normally paid quaterly based on the companies recent earnings
What is a creditor
The lender of money who’s owed money buy the debtor
What is added value
Added value is the increase in a product’s value as a result of a business producing a product
What is differentiation
Differentiation is making a product unique in its industry
What is a USP
Unique selling point
What is the marketing mix
Price, product, promotion, place
What is bias
Bias is preference for no reason without facts or evidence
What is a product life cycle
Introduction, growth, maturity and decline
Disposable income
Amount of money received after tax
What is segmentation
Segmentation is the process of breaking up the market into different groups
Market leader
The company with the largest market share
Profit margin
Profit margin is how much money made - all costs
Inflows
Where money is going into the business
Outflows
Where money is going out of the business
Crowdfunding
Where people invest into the business and in turn the business will give something back such as discounts
Venture capitalist
Investors who provide money to startup companies in return for a share in the business. E.g the dragons on dragons den.
Trade credit
This is when a business buys goods but delays payment of goods until a later scheduled date
Opportunity cost
The potential profit lost by choosing one option over the other
Shareholder
Someone who owns a share of the business
Limited liability
If your business goes into unrepayable debt the bank won’t seize your personal assets
Unlimited liability
If your business goes into debt and the business can’t pay it off the bank can seize your assets to pay the debt off.
Incorporated
This is turning your business into its own separate legal entity
Function
What the product should do and how well it does it
Aesthetics
How the products appeals to customers
Recession
A period of a significant decline in economic activity that lasts longer than a few months
Productivity
This is how efficiently a business turns input into output
Efficiency
The ability to achieve an end goal with as little time, effort or resources needed
Discrimination
Treating someone unfairly because of who they are
GDP
Gross Domestic Product- which is a measure of all economic activities in a country
Appreciation
The increase in value of an asset over time
Depreciation
Depreciation is the decrease in value of an asset over time
Interest
% amount of money that is added onto your saving account and amount of extra money per year you have to pay for borrowing
DETERMINATION
Determination
