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Business > Unit 1 definitions > Flashcards

Unit 1 definitions Flashcards

0
Q

Adviser

A

An external contact of a business that provides support and advice, sometimes for free

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1
Q

Adding value

A

A process through which a business increases the worth of the resources included in production.

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2
Q

Bank loan

A

A fixed amount loan from a bank which is generally used to finance long-term assets

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3
Q

Bank overdraft

A

Borrowings from a bank on a current account which are payable on demand

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4
Q

Break even

A

The point at which the business is making neither a profit nor a loss. TR=TC

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5
Q

Budget

A

A detailed plan of income and expenses expected over a certain period of time

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6
Q

Business plan

A

A detailed description of a new or existing business, including the company’s strategy, aims and objectives, marketing & financial plan

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7
Q

Cash flow

A

The movements of cash into and out of a business - inflows and outflows

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8
Q

Cash flow forecast

A

A projection, usually by week or month, of the likely cash inflows and outflows in a business

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9
Q

Contribution

A

The difference between total sales and total variable costs

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10
Q

Contribution per unit

A

the difference between selling price per unit and variable cost per unit. P per unit - VC per unit

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11
Q

Costs

A

Outflows of cash of a business as a result of trading

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12
Q

Demand

A

The amount of a product or service that customers are willing and able to pay at a given time

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13
Q

Demographic

A

Defining a market in terms of social-economic factors such as segmentation age, income, class etc

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14
Q

Elasticity of demand

A

The responsiveness of demand to a change in price or incomes

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15
Q

Electronic market

A

A market in which buyers and sellers are brought together using digital means of communication (online)

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16
Q

Enterprise

A

An idea for a business/service

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17
Q

Entrepreneur

A

An individual who sets up and runs a new business and takes on the risks associated with the business

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18
Q

Expenditure budget

A

The budget which estimates the expected costs of a business e.g. Marketing

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19
Q

Fixed costs

A

Costs that do not vary with the level of output e.g. Rent

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20
Q

Franchisee

A

The person or company which operates a franchised business format

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21
Q

Franchisor

A

The owner of a franchise which is licensed out to other people or franchisees

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22
Q

Full-time employee

A

An employees who works more than 30 hours a week in a business

23
Q

Income budget

A

An estimate of the future cash inflows of a business

24
Q

Inputs

A

The resources, e.g. land, that go into producing goods and services

25
Q

Limited liability

A

Shareholders are only liable for the money they have invested - not for the overall debts and liabilities of their company

26
Q

Location

A

The place/places from which a firm does business. Can be both a physical location and also virtual.

27
Q

Margin of safety

A

The difference between the actual level of output and the break even output

28
Q

Market

A

Any place where buyers and sellers come together to trade

29
Q

Market growth

A

The percentage growth in the size of the market, measured over a specific period

30
Q

Market research

A

The process of planning, collecting, and analysing data relevant to help make marketing decisions

31
Q

Market segmentation

A

The process of dividing a market into smaller sections which contain customers with similar needs and wants

32
Q

Market share

A

The share of the total market that is owned by a particular business, product or brand.

33
Q

Market size

A

The total value or quantity of demand in a specific market over a specific period of time. Measured in units sold

34
Q

Niche market

A

A smaller part of a larger market in which customers have more specific needs and wants.

35
Q

Opportunity cost

A

The cost of a decision measured by the benefits of the next best alternative

36
Q

Patent

A

The right to be the only user/producer of a specific product/process

37
Q

Primary research

A

The market research that involves the collection of data that does not yet exist

38
Q

Profit

A

The difference between total sales and total costs

39
Q

Qualitative research

A

Market research concerned with collecting data on attitudes, opinions, beliefs, intentions etc.

40
Q

Quantitative research

A

Market research concerned with collecting data that can be quantified - e.g. sales statistics

41
Q

Return

A

The rewards to enterprise e.g. profit

42
Q

Revenue

A

The income or sales that a business achieves in a period.

P per unit x quantity sold

43
Q

Risk

A

The probability or chance that hoped-for outcomes will not occur

44
Q

Sampling

A

The process of taking and analysing a research sample.

45
Q

Share capital

A

The finance invested in a business by the shareholders

46
Q

Social enterprise

A

A business that has objectives other than making profit. Part of a group of organisations in the “not-for-profit” sector

47
Q

Sole trader

A

A one-person business with unlimited liability for the debts of that business

48
Q

Supplier

A

A business that provides goods and services to other firms.

49
Q

Total costs

A

The total of variable and fixed costs in a business

50
Q

Trade credit

A

Amounts owed to suppliers of a business – a source of finance

51
Q

Trademark

A

A word, symbol, or phrase used to identify a particular company’s product and differentiate it from other companies’ products

52
Q

Unlimited liability

A

Describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business

53
Q

USP

A

Unique selling point - a feature of a product or service that makes it stand out compared with the competition

54
Q

Variable costs

A

Costs that change with output e.g. Raw materials, power, wages

55
Q

Venture capital

A

Investment made by specialist funds to finance the launch, early development or expansion of a private company

56
Q

Working capital

A

The amount of money that a business has available to conduct its day-to-day activities

Business (4 decks)

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