Theme 1 (3) Flashcards
Primary research
Research conducted first hand, it is tailored to a company’s specific needs.
Private limited company Ltd
A business that has limited liability whose shares are not traded on the stock exchange.
Product
A good or service sold to consumers.
Product differentiation
Where a product has unique features that makes it stand out from other similar products in the market.
Profit
The difference between revenue and total costs. If the figure is negative, the business is making a loss.
Promotion
Methods used to encourage potential consumers to purchase a good or service from a business.
Public limited company Plc
A business that has limited liability whose shares are traded on the stock exchange.
Qualitative data
Research that involves collecting opinions from potential consumers.
Quantitative data
Research that involves collecting numerical information.
Resources
The factors of production such as labour that are required to successfully run a business.
Retained profits
The profit made by a business that is not paid to shareholders and is used as an internal source of finance.
Revenue
The income that a business receives from its sales (selling price multiplied by quantity of goods sold).
Revenue/Sales Revenue
The amount of money that comes in from a business’s sales.
Risk and reward
The balance between potential profit in the future and the initial costs of setting up an enterprise.
Secondary research
Research that a company does not collect for a specific purpose itself and can be found in places such as the internet.
Services
Providing useful ways to help people live their lives, for example shops, restaurants, and hospitals.
Share Capital
The raising of capital by selling new shares in a company.
Shareholders
Investors who are part-owners of a company.
Social media
Any form of electronic communication that allows users to share content.
Social objective
Business goals that are non-financial and designed to meet a social/community need.
Sole Trader
A business owned by one person which has unlimited liability.
Stakeholder
Anyone who has an interest in the activities of a business, such as its workers, its suppliers, its directors, the local community, and the government.
Start-up
A new business, usually with only a small number of employees.
Target market
A particular group of consumers at which a business aims its products and services.
Total costs
All the costs of a business, found by adding fixed and variable costs. (Fixed plus variable costs for a time period)
Trade credit
Where a business buys raw materials from its suppliers, but pays in cash at a later date.
Unemployment
When someone of working age wants a job but cannot get one.
Unique Selling Point (USP)
Something that makes a product stand out from its competitors.
Unlimited liability
A situation where the business and the owner are treated legally as one and the same. Thus, any debts incurred by the business have to be settled by the owner(s).
Value added
The difference between the selling price of the product and the cost of the factor inputs.
Variable costs
Costs that change when output changes.
Venture Capital
Investment of cash from individual or groups of individuals into a private limited company.
