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GCSE EDEXCEL BUSINESS STUDIES > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

Added value

A

The difference between the cost of the materials taken to make a product and the price
that is charged for the product.

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2
Q

Aims and objectives

A

The goals of a business. These may be financial or non‐financial.

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3
Q

Breakeven

A

The number of products a business must sell so that its total revenue is the same as its
total costs. At this point the business will make no profit or loss.

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4
Q

Business plan

A

A plan for the development of a business, giving details such as the products to be
made, resources needed, and financial forecasts.

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5
Q

Business success

A

A measure which could be sales, market share or profit related.

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6
Q

Cash flow

A

The flow of money into and out of a business over a period of time.

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7
Q

Cash inflow (Receipts)

A

Money coming into the business. E.g. Revenue, a loan or another source of
finance.

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8
Q

Cash outflow (Payments)

A

Money leaving the business. E.g. Wages, suppliers, loan repayments or
advertising.

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9
Q

Choice

A

A range of products aimed at differing needs and segments.

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10
Q

Closing balance

A

The amount of money left at the end of the current time period.

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11
Q

Competition

A

When companies produce comparable products or services within the same market.

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12
Q

Competitive advantage

A

The advantage one company has over another, or several others.

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13
Q

Competitive environment

A

A market which has many competitors.

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14
Q

Consumer

A

The person who uses the product.

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15
Q

Consumer income

A

The amount a person or household has to spend, after paying tax.

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16
Q

Consumer rights

A

What the consumer is entitled to by law.

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17
Q

Crowdfunding

A

Where a large number of individuals invest into a business project on internet sites
such as Kickstarter.

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18
Q

Customer

A

The person who buys the product.

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19
Q

Customer needs

A

What the customer wants, these can change over time. E.g. Price, quality, choice or
convenience.

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20
Q

Customer service

A

Having a clear understanding of customer expectations and delivering.

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21
Q

Demographics

A

The characteristics of the population in terms of age and gender.

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22
Q

Digital communication

A

Communicating with customers electronically through things such as a
website, social media and email.

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23
Q

Discrimination

A

Judging someone based on their age, gender, race, religion or disability.

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24
Q

Dynamic business

A

Businesses responding to what consumers want.

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25
Q

e‐commerce

A

The use of online systems to sell goods and services.

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26
Q

Economic climate

A

The broad performance of the UK economy, as measured by GDP growth.

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27
Q

Enterprise

A

The skills shown by an entrepreneur.

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28
Q

Entrepreneur

A

A person who organises resources, makes decisions and takes risks in business, in order
to benefit from the potential future rewards.

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29
Q

Exchange rate

A

The price of one currency in terms of another. E.g. £1=$2

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30
Q

Export

A

Goods or services that a firm produces in its home market, but sells in a foreign market.

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31
Q

Financial aim

A

Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.

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32
Q

Financial aim

A

Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.Fixed cost

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33
Q

Fixed cost

A

Costs which do not change with output. E.g. Rent or salaries.

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34
Q

Focus group

A

Where a number of customers are invited to attend a discussion about a product.

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35
Q

Forecast

A

A prediction of future finances. E.g. Sales, cash flow or profits.

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36
Q

Franchise

A

The right given by one business to another to sell goods or services using its name.

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37
Q

Franchisee

A

A business that buys the rights to a franchise.

38
Q

Franchisor

A

The person who owns the rights to the franchise.

39
Q

Gap in the market

A

An area of the market, with no products currently being provided.

40
Q

Good

A

Physical items a business sells. E.g. Bikes, laptops & pens.

41
Q

Import

A

Goods and services that are bought into one country from another.

42
Q

Inflation

A

A general and persistent rise in prices which reduces purchasing power.

43
Q

Insolvency

A

When a business can no longer afford to pay its debts.

44
Q

Interest

A

The cost of borrowing and the reward of saving. Can be fixed or variable.

45
Q

Legislation

A

Laws passed by Acts of Parliament.

46
Q

Limited liability

A

Where a business and its owners have separate legal identities, meaning shareholders
can only lose the original amount they invested into a business.

47
Q

Location

A

Where a business locates.

48
Q

Margin of safety

A

The amount of products a firm sells over and above the breakeven point.

49
Q

Marketing mix

A

The elements of marketing that are designed to meet the needs of the customer. The
elements are product, price, place and promotion.

50
Q

Market mapping

A

A method of evaluating business ideas by setting out the features of a market and
plotting on current products being provided. Normally these are used to find a gap in the market.

51
Q

Market research

A

Collecting and analysing data from customers, competitors and the market in
general.

52
Q

Market segments

A

An identifiable group of people with the similar characteristics. This could be split by
location, demographics, lifestyle or income.

53
Q

Net cash flow

A

The difference between cash inflows and cash outflows over a period of time.

54
Q

Non‐financial aim

A

Aims and objectives that relate to areas other than finance. E.g. Social objectives,
personal satisfaction, challenge and control.

55
Q

Obsolete

A

A product which is out of date and no longer used.

56
Q

Opening balance

A

The amount of money the business has at the start of the current time period.

57
Q

Overdraft

A

With agreement from your bank, taking more out of your account than you actually have,
leaving a negative bank balance.

58
Q

Partnership

A

A business organisation that is usually owned by 2‐20 people, who have unlimited
liability.

59
Q

Payment systems

A

The variety of ways in which customers can pay for a product. Includes contactless
payments, apple & android pay, PayPal and more traditional methods.

60
Q

Place

A

How the product passes from the producer to the consumer.

61
Q

Pressure group

A

A group with a common interest/goal who work collectively to further the cause.

62
Q

Price

A

The amount charged to the customer for the product.

63
Q

Primary research

A

Research which is being collected for the first time.

64
Q

Private limited company (Ltd)

A

An incorporated business, with Ltd after its name that can sell shares to
family and friends. The shareholders have limited liability.

65
Q

Product

A

The good or service a business is selling.

66
Q

Product portfolio

A

The range of products a business sells.

67
Q

Profit

A

The amount left from revenue after costs have been paid.

68
Q

Promotion

A

An attempt to obtain and retain customers by drawing their attention to a business or its
products. E.g. Sales promotions, advertising and public relations.

69
Q

Qualitative data

A

Data which is detailed and contains information about people’s feelings and opinions.

70
Q

Quantitative data

A

Data which is limited in detail, but can easily be put into graphs and charts for
analysis.

71
Q

Resource

A

The land, labour and capital used by entrepreneurs. E.g. Buildings, equipment & staff.

72
Q

Retained profit

A

Profit that is ‘ploughed back’ into the business.

73
Q

Revenue

A

The money made from selling a product.

74
Q

Reward

A

The return for taking a risk and making it a success.

75
Q

Risk

A

A situation or decision that has exposure business failure, financial loss or lack of security.

76
Q

Secondary research

A

The collection of data that already exists but is then used for a business’s own
requirements.

77
Q

Selling assets

A

When a person or business sells assets it owns, such as equipment or vehicles it no
longer uses, in order to raise finance.

78
Q

Service

A

Non‐physical items a business sells. E.g. Hairdressing, public transport & music streaming.

79
Q

Share capital

A

A way of raising finance through sale of shares.

80
Q

Shareholder

A

A person who owns a ‘share’ in a business.

81
Q

Sole trader

A

A business with a single owner, who has unlimited liability.

82
Q

Stakeholder

A

Those with an interest in the activities of a business. These can be internal or external.
E.g. Shareholders, managers, customers and the local community.

83
Q

Stakeholder conflict

A

When different stakeholder groups have different aims and objectives, which can
be difficult for a business to satisfy at the same time.

84
Q

Target market

A

The segments of the market you are aiming your product at.

85
Q

Taxation

A

Charges from the government.

86
Q

Technology

A

Hardware and software that businesses may use.

87
Q

Trade credit

A

A period of time given to a customer between receiving the goods and payment being
due.

88
Q

Unemployment

A

The number of people who are looking for work but unable to find any.

89
Q

Unique selling point

A

A characteristic of the product that makes it different from other similar products
being sold in the market.

90
Q

Unlimited liability

A

Where a business and its owners are one and the same, meaning the owners are
responsible for all business debts.

91
Q

Variable cost

A

A cost which rises as output rises. E.g. Raw materials or packaging.

92
Q

Venture capital

A

An experienced business person provides funds for small or medium sized companies
that may be considered too risky for other investors, in return for equity.

GCSE EDEXCEL BUSINESS STUDIES (2 decks)

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