Unit 1 Flashcards
What is a e-commerce
E-commerce is the process of buying and selling products online
What is a benefit and a drawback of e-commerce
Benefit- more people on the internet therefore more customer and services, no need of physical company, you can buy and sell 24/7
Problem- not the same employee interaction, may be untrustworthy, product might not be good quality
What is a Franchisor
A person who sells the right to use a business idea in a particular location
What is a franchisee
A franchisee is a person who buys the right from a franchisor to copy a business format
What is a stakeholder
A person or organisation who is impacted by the operations of a business
E.g. owner, employee/employer, manager
What is a shareholder
Someone included with the shares of a business
What is an aim
A long term goal for the business
What is an objective
A target which an organisation or individual can work towards
What is limited liability
If something bad happens to the business where they are put in debt, then only a proportion of the debt goes towards you
What is an entrepeneur
It is someone who is willing to take the risks involved in starting a business
What is a social enterprise
It is a business set up to help society rather than to make a profit
What is marketing research
It is the process of gathering, analysing and presenting data relevant to marketing
What is involved in primary research
Gathering and analysing marketing data that has nkg been collected before
Secondary market research involves…
Gathering and analysing marketing data that has been collected already
What is Market share
The indication in the number of sales of one product compared to the total market sales
What is a franchise
It occurs when a franchise sells an existing business idea to a franchisee
The equation for market share is …
(Sales of a product/total market sales)x10
Public sector organisation are owned by…
The government
Private sector organisation are owned by…
Individuals
What is a business plan
It is a document setting out what the business does at present, plus what it intends to achieve in the future and how it will be accomplished. The plan will include marketing and financial plans
What is business planning
It is the process of producing a business plan
What is a risk
It is a possibility of something going wrong
What is an uncertainty
It is something that we cannot be sure will happen
What is a sole trader
A sole trader is an individual who sets up a business on his or her own
What is unlimited liability
It occurs when the personal possessions of the owners of a business are at risk if there is any problems, there is no limits to the amount of money the owners may have to pay out
What is a partnership
It is formed when two or more people set up in business together
What is a deed of partnership
It is an agreement between partners that set out the rules of the partnership, such as how profits divide and how the partnership will be valued if one wants to leave
What is a company
It is a business that has it own legal identity. It can own items, owe money, sue and be sued
What is a market segment
It is a group of similar needs within the overall market
What is the marketing mix
It refers to all the activities influencing whether or not a customer buys a product. The elements of the mix can be analysed using the 4P’s: product, price, place, promotion
What is the owners funds
The money put into a business by its owner or owners
What is interest
It is a payment made in order to borrow money. It means a business repays back more than it borrows
What is an overdraft
It give entrepreneurs and businesses the right to borrow variable amounts of money up to an agreed limit
What is a mortgage
It is/are loans from banks and building societies that are used to buy land and building such as offices and shops
Price is …
The amount a business asks a customer to pay for a single product
Revenue is…
The income that a firm receives from selling its good and services
What is Sales
It refers to the number of products sold by a business
Costs are…
The spending that is necessary to set up and run a business
Profits is…
The amount by which a business’s revenue from all its sales exceeds its cost
Loss is…
The amount by which a business’s cost are larger than its revenue from all sales
What is cash flow
It is the money that flow into and out of a business on a day-to-day basis
What is a cash flow forecast
It is a plan of the expected inflows and outflows to and from a business over a period of time
What is a cash flow statement
It is a historical record of the cash inflow and outflow that have taken place over a period of time
What is insolvency
It occurs when a business is not able to meet its financial commitments when they are due
What is a receiver
It is a person who takes responsibility for an insolvent business and makes arrangements to pay its debts
What is recruitment
It is the process of finding and appointing new employees
What is internal recruitment
It is a process which takes place when a job vacancy is filled from within the existing workforce
What is external recruitment
It is the process of filling a job vacancy from any suitable person not already employed by the business
Training is…
The giving of job-related knowledge and skills to an employee - for example, teaching a new employee to drive a fork life truck
Monetary benefits are…
Additional payments made to employees on top of their wages or salaries, such as bonuses
Non monetary benefits are…
Rewards given to employees that are not in monetary form, such as free lunches
Remuneration is …
A term that means the payment os employees
Wages are …
The money paid by businesses to employees in return for work and are normally paid each week
Salaries are…
Money paid by businesses in return for work and are normally paid monthly
Motivation is…
The range of factors that influence people to behave in certain ways
Job enrichment is…
Designing a job to give interesting and challenging tasks
Authority means…
Having power or control over something
Legislation is…
A set of rules that governs the way society operates. It is another term for ‘law’
Discrimination is …
Treating one person differently from another without having a good reason
Production is…
The process of changing inputs such as labour services into goods and services that can be sold
Job production is…
A method of production in which a product is supplied to meet the exact requirements of customer
Batch production is…
A method of production in which a group of similar products are produced at the same time
Efficient production
Takes place when a business uses a minimum amount of resources to produce its goods and service
Quality
Is the extent to which a consumer is satisfied with a product
Customer service
Is the part if a business’s activities that is concerned with meeting customers’ needs as fully as possible
After sales service
Is the meeting of customers needs after they have purchased a product, for example by repairing or servicing the product
Premises
Are the buildings used by a business - these may include offices, shops and factories
Customers loyalty
Means that a business’s customers makes repeat purchases because they prefer the business’s products to those of its rivals
Consumer protection laws are
Laws that have been introduced to prevent businesses from treating their customers unfairly
Information Communication Technology (ICT) are
The computing and communication systems that a business might use to help give good customer service
Global markets are
Made up of customers from across the world
