Small Business Terms Flashcards
Added value
The increased worth that a business creates for a product;it is the difference between what a business pays its supplier and the price that it is able to charge for the product or service
Competitive advantage
An advantage that enabled the business to perform better than its rivals in the market and which is both distinctive and defensible
Cash flow
The flow of cash in and out of the business
Net cash flow
The receipts of a business minus its payments
Customer satisfaction
A measure of how much products meet customers’ expectations
Customer service
The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations
Fixed cost
Cots which do not vary with the output produced such as rent,business rates,advertising costs,administration costs and salaries
Gap in the market
Occurs when no business is currently serving the needs of customers for a particular product
Income tax
A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their bet earnings
Market gap
A diagram that shows the range of possible positions for two features of a product,such as low to high price and low to high quantity
Personal specification
A profile of the type of person needed for a job-their skills and qualities
Outflow
The cash flowing out of a business,its payments
Price sensitive
When the price is very important in the decision about whether or not to buy
Qualitative data
Information about opinions,judgements and attitudes
Quantitive data
Data that can be expressed as numbers and can be statically analysed
Raw material costs
Raw materials are a large proportion of the total cost,so a change in their prices have a big impact on his costs and his profits
Interest rate
The percentage reward or payments over a period if time that is given to savers or paid by borrowers on savings or loans
Repeat purchase
Orders or sales that occur from customers who have brought the product or service in the past
Revenue
The amount of income received from selling goods or services over a period of time
What is the bank of England.
Central bank for the uk. Its role is to control the banking system and be the banker to other dance.
What is the business cycle?
Fluctuations of the level of economical activity .
What are perceptual maps?
A diagram that shows the range of possible positions for two features of a product, such as low to high quality and price.
What is price sensitive?
When the price is very important in the decision about weather or not to buy.
What is corporation tax?
Tax on the profit of limited companies
What is deliberate creativity?
The intentional creation of new through recognised and accepted techniques.
What is desk research?
It is information that has already been gathered such as sales records, government statistics or reports from market research groups.
What are franchises?
The right given by one business too another to sell goods or services using its name.
What is a franchisee?
A business that agrees to manufacture, distribute or provide a branded products, under license of a franchisor
What is a franchisor?
Business that gives the franchisees the right to sell its products in return for a fixed sum of money.
What is innovation?
The process of transforming inventions into products that can be sold to customers.
What is invention?
The discovery of new processes and potential new products, typically after a period of respect.
What is limited liability?
When shareholders of a company are not personally liable for the debts of the company: the most they can loose is the value of their investment in the share of the company.
What is marketing mix?
The combination of factors which help the business to take into account the customer needs when selling a product- summarised as the 4 p’s
What is primary data?
Gathering of data and new information which has not been collected before.
What is secondary data?
Information that has already been gathered such as sales records, newspaper articles or reports from market research groups.
What is share capital?
The monetary value of a company which belongs to its shareholders.
What is a sole trader?
The only owner of a business that has unlimited liability.
What is a stakeholder?
Individual of group which are interested and are affected by the activity of a business; they hVe an interest in weather or not the business is successful
What is surplus?
When the demand for a good or service is less than the available supply. When a shortage exists prices tend to rise.
What is trade credit?
Where a supplier gives a customer a period of time to pay a bill for good/ services once they have been delivered
What is unlimited liability?
Legal obligation on the owner of a business to settle all debts if a business.
What is a venture capitalist?
Individual of company that buy shares in what they hope will become a fast growing business with a long term view of selling the shares if the profit.
