Adviser - this is an external contact who provides a business with support and advice, sometimes for free.
Bank loan - a fixed amount loan from a bank which is usually used to fund long term assets.
Bank overdraft - borrowings from a bank on a current account which are payable on demand.
Break even - the point at which the total sales of a business equal total cost, where the business is not making a profit or a loss.
Budget - a detailed plan of expected income and expenses over a period of time.
Business plan - a detailed description of a business, including is strategy, aims and objectives, marketing and financial plans.
Cash flow - the movement of cash in and out of a business.
Cash flow forecast - a prediction of cash inflow and outflow of a business over a certain period of time.
Contribution - the difference between total sales and total variable costs.
Costs - the amounts incurred by a business as a result of its trading operations.
Demand - the amount of a product customers are willing and able to buy at a given price level.
Demographic segmentation - defining a market by factors such as age, income, class etc
Elasticity of demand - how responsive demand is to change in price or income.
Enterprise - the process by which new businesses are formed in order to offer products and services to a market.
Entrepreneur - an individual who sets up and runs a new business and takes the risk associated with creating a business
Fixed cost - cost which do not change with output
Franchisee - a company that operates as a franchised business format under a licence from a franchisor.
Franchisor - the owner of a business which licenses out to other businesses.
Inputs - the resources that go into producing goods and services (land, labour, capital and enterprise).
Limited liability - shareholders are only liable for the money they have incested, not for overall debts of the company.
Margin of safety - this is the actual output minus break even output.
Market growth - the growth of in the size of a market.
Market research - the process of planning, collecting, and analysing data relevant to help make marketing decisions.
Market segmentation - the process of dividing a market into smaller segments which containt customers with similar needs and wants.
Market share - the shre of a total market that is owned by a particular business, product or brand.
Opportunity cost - the cost of a decision by the benefits foregone for the next best alternative.
Patent - the right to be the only producer of a specified product or process.
Primary research - new market research done for a new purpsoe.
Profit - total sales minus total cost.
Qualitative research - market research concerned with collecting data in the form of opinions, beliefs etc.
Quantitative research - market research taken in the form of number, statistics etc.
Return - the reward to the enterprise.
Risk - the chance that the hoped for outcome will not occur.
Sample - a subset of a population.
Sole trader - a one person business with unlimited libaility.
Total cost - total variable cost and fixed cost together.
Trade credit - amounts owed to suppliers of a business.
Trademark - a word, symbol, phrase or something to identify a praticular companys products.
Unlimited liability - where the business owner is liable for the debts of the business.
USP - the unique selling point, which makes the product stand out.
Variable costs - costs that vary depending on your output.
Venture capital - investment made by specialist funds to finance a business for a part of the business.
working capital - amount of money that a business has available to operate on a daily basis.