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GCSE AQA Business Studies Unit 1 and Unit 2 > Unit 1: Setting Up A Business > Flashcards

Unit 1: Setting Up A Business Flashcards

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1
Q

Business

A

An activity that requires the organisation of resources to achieve a reward, whilst running a risk

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2
Q

Entrepreneur

A

An individual with an idea or business

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3
Q

Gap in the market

A

A business opportunity that is either a completely new idea or adds something different to an existing product or service.

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4
Q

Franchise

A

The legal right to use the name and logo of an existing firm and sell the same products.

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5
Q

Business Aim

A

A stated target for the future. For example, a new business may have the aim to survive its first year of trading.

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6
Q

Business Objective

A

A clearly defined target for a business to achieve over a certain period of time.

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7
Q

Growth

A

An increase in turnover(sales), market share or profit.

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8
Q

Profit

A

What is left after costs have been deducted from revenue.

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9
Q

Profit Margin

A

Profit made as a proportion of sales revenue.

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10
Q

Sales

A

The amount sold or the value sold.

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11
Q

Market Share

A

The proportion of total market sales sold by one business.

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12
Q

Customer Satisfaction

A

How happy the customer is with the product or service.

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13
Q

Ethics

A

The moral questions on which decisions are made and the impact the business has on its internal and external environment.

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14
Q

Turnover

A

The value of sales made during the trading period, also called revenue.

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15
Q

Stakeholder

A

An individual or group with an interest in a business, such as employees, customers, managers, shareholders, suppliers, competitors and the local community.

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16
Q

Business Plan

A

A statement showing how a business sets out to achieve its aims and objectives.

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17
Q

Funding

A

The capital provided for the various stages of business growth by different sources of finance, either on a short- or long-term basis.

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18
Q

Forecast

A

A technique where the business attempts to estimate future sales, or other financial variables.

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19
Q

Risk

A

The potential for loss but rewards in business make it a calculated gamble.

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20
Q

Uncertainty

A

Not knowing the future, or what is going to happen.

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21
Q

Sole Trader

A

The most common form of business organisation, often just one person

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22
Q

Partnership

A

The simplest way two or more people can be in business together where partners are jointly and personally responsible for debts.

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23
Q

Unlimited liability

A

Unincorporated businesses, such as sole traders and partnerships, have unlimited liability, which means that the owners are responsible for all the business’s debts.

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24
Q

Incorporation

A

The process of forming limited liability company such as a private limited company or PLC.

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25
Q

Limited Liability

A

Investors (shareholders) in a limited company can only lose their investment in the business if it fails; they cannot be forced to sell assets to pay off the firm’s debts.

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26
Q

Technology

A

In relation to business location, this refers to the use of e-technology, such as the Internet and email, to create a virtual market between the business and the consumer.

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27
Q

Logistics

A

The process of buying, managing and delivering goods, from the point of manufacture to the end customer.

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28
Q

Market Research

A

Research that enables a firm to find out about its market, its customers and its potential customers

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29
Q

Primary Research

A

Gathering new information specifically for the purpose identified by the business

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30
Q

Secondary Research

A

Research that uses information that has already been gathered for another purpose

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31
Q

Questionnaire

A

A set of questions designed to discover information relating to a product or service. These may be left for consumers to complete themselves, carried out by using face-to-face interviews by researchers or from the basis of a telephone or postal survey

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32
Q

Internet Research

A

Using information that has already been published on the internet to gather information about the market for a firm’s products or services

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33
Q

Telephone Survey

A

A series of set questions delivered over the telephone to consumers as a method of primary research

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34
Q

Supplier Feedback

A

Gathering information from companies that supply products or services on their forecasts for what is likely to happen in the market in the future

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35
Q

Customer Feedback

A

Formal or informal responses from customers to the product or service offered by a business

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36
Q

Focus Group

A

In-depth discussion with a small group of consumers (8-10), which probes their feelings towards a product or service.

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37
Q

Marketing Mix

A

The 4 major variables for which decisions must be made when marketing a product

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38
Q

Product

A

The service or physical good being sold by the company

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39
Q

Price

A

The amount charged by a business for its product or service

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40
Q

Promotion

A

All the ways a business communicates to consumers with the aim of selling products.

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41
Q

Place

A

The methods used by a firm to sell its products or services to consumers

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42
Q

Product range

A

The collective term given to all the products made or sold by a business

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43
Q

Product differentiation

A

Attempting to make your products stand out from those of your rivals through advertising, design or different product features

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44
Q

Demand

A

The quantity that consumers are willing and able to buy at the current price level

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45
Q

Marketing budget

A

The amount to be spent on marketing and promotion over a certain period of time

46
Q

Advertising

A

Communication to consumers, using television and other media, to encourage them to buy a product

47
Q

Publicity

A

Gaining press coverage for your business

48
Q

Word-of-mouth recommendations

A

Getting customers to talk to their friends and family about your product or service

49
Q

Direct mail

A

Sending promotional material directly to consumers

50
Q

Personal selling

A

Employing a person to visit potential customers to persuade them to buy your goods and services

51
Q

Website

A

Many businesses now have their own website on the Internet to provide information about their business for consumers

52
Q

Banner

A

An Internet advert shown on another firm’s website in the form of horizontal bar across the page

53
Q

Pop-up

A

An Internet advert that ‘pops-up’ in a new window when visiting another company’s website

54
Q

Channel of distribution

A

The method used to transfer goods or services from the producer to the final consumer

55
Q

e-Commerce

A

Transactions between people and business carried out entirely via the Internet

56
Q

Wholesaler

A

Buys large quantities of a product from producers and break them down into more manageable batches for retailers or consumers

57
Q

Retailers

A

Offer consumers a convenient and comfortable environment in which to buy products

58
Q

Profit

A

What is left after costs have been deduced from revenue

59
Q

Loss

A

When revenue is less than costs

60
Q

Costs

A

The expenses a business pays for in producing goods and services

61
Q

Revenue

A

The amount of money a business receives from selling goods or services

62
Q

Cash

A

Money that the business has available to it straight away, such as money in its bank account

63
Q

Forecast

A

A technique where the business attempts to estimate

64
Q

Cash Flow Forecast

A

A prediction of a business’s future cash inflows and outflows, showing the closing balance

65
Q

Bank Loan

A

Finance provided by the bank that will be paid back over a set period

66
Q

Loan From Friends and Family

A

Finance provided by friends or family where the interest rate and repayment periods are agreed with them

67
Q

Overdrafts

A

A flexible arrangement that allows a business to spend more money than it has in its bank account, as and when it needs the finance

68
Q

Mortgage

A

Long-term finance loan for purchasing a building

69
Q

Trade Credit

A

Suppliers who allow debts for goods and services to be paid one or two months after delivery

70
Q

Grant

A

Money given to a business by a government or organisation

71
Q

Net Cash Flow

A

Difference between cash in and cash out of a business over a time period

72
Q

Opening balance

A

The money the business has at the start of the month. It is the closing balance from the previous month.

73
Q

Closing balance

A

The amount of cash the business has at the end of each month

74
Q

Recruitment

A

Attracting people to apply for a job vacancy

75
Q

Part-time Workers

A

Working for a proportion of the full working week

76
Q

Internal Recruitment

A

Appointing an existing employee of the business to fill a vacancy

77
Q

Full-time Workers

A

Working for the normal full working week

78
Q

Wage

A

When an employee is paid a fixed amount for each hour or the day they work

79
Q

Salary

A

When a worker is paid a fixed amount per month or year, no matter what hours they work

80
Q

Pension

A

Payments made to retired workers in addition to the state pension

81
Q

Non-Monetary Rewards

A

Rewards to employees that do not involve the direct payment of money to them

82
Q

Commission

A

When the employee gets a percentage of the amount they sell

83
Q

Equal Pay Act 1970

A

Men and women should be paid the same for the same job.

84
Q

Minimum Wage Act 1998

A

The minimum amount that a business is allowed to pay a worker per hour

85
Q

Race Discrimination Act 1976

A

A business can not discriminate against a person in the workplace based upon their race

86
Q

Disability Discrimination Act 1995

A

A business can not discriminate against a person in the workplace based upon their disability

87
Q

Maternity Pay

A

Pay given to expectant mothers for having a child

88
Q

Paternity Pay

A

Pay given to expectant fathers for having a child

89
Q

Sick Pay

A

Pay given to workers for being off sick (anything longer than 3 days requires a doctor’s notice)

90
Q

Holiday

A

Length of time a worker is allowed off work on full pay

91
Q

Health and Safety Act

A

Employees have the right to work in a safe and healthy environment

92
Q

Job production

A

Making one-off, specialised products for each customer.

93
Q

Batch production

A

Groups of identical items that pass through different stages of the production process at the same time.

94
Q

Operational efficiency

A

Producing goods and services to an acceptable standard with as few resources as possible to keep costs per unit low.

95
Q

Unit costs

A

The average cost of making each unit.

96
Q

Specialisation

A

Work is divided into separate tasks or jobs that allow workers to become skilled at one of them.

97
Q

Information communication technology

A

The use of electronic technology to gather, store, process and communicate information.

98
Q

Robot

A

A computer-controlled machine able to perform a physical task.

99
Q

Computerised stock-control programs

A

The use of computers to keep records of all stocks and recorder necessary stock automatically.

100
Q

Computer-aided design

A

Using computer-based tools to design products, such as buildings, cars and clothes.

101
Q

Quality product

A

A good or service that meets customers’ expectations and is therefore ‘fit for purpose’

102
Q

Customer expectations

A

The minimum quality standards for a product or service that is acceptable to consumers.

103
Q

Quality assurance

A

A system of agreeing and meeting quality standards at each stage of production.

104
Q

E-commerce

A

The buying and selling of goods and services over the internet.

105
Q

Customer Service

A

Providing services to customers before, during and after purchase to standards that meet their expectations

106
Q

Customer protection

A

Laws that protect the interests of consumers when buying goods or services

107
Q

Sales of Goods Act 1979 and Supply of Goods and Services Act 1982

A

Goods and services must be as described, fit for purpose and made to a satisfactory quality

108
Q

Consumer Protection Act 1987

A

Compensation must be paid to a consumer who suffers injury or damage to property when correctly using the good

109
Q

Competition Act 1998

A

Businesses must not agree to fix prices at a high level with other similar businesses

110
Q

Consumer Protection 2000

A

Protects consumers who purchase goods not in person and so businesses must give clear information and a cooling off period

111
Q

Consumer Protection from Unfair Trading Regulations 2008

A

Advertisements must not be misleading or deceive and allow consumers to check price using comparison websites

GCSE AQA Business Studies Unit 1 and Unit 2 (12 decks)

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