Business Unit 1 - Developing New Business Ideas

Adding Value - changing inputs in a way that consumers see as beneficial.

Aggregate Demand - measure of all the spending in the economy.

Assertion - making a claim not supported by evidence.

Assets - something that is useful or valuable. Premises, equipments and goodwill are examples.

Autocractic - dictorial power. Decisons handed down for implemation.

Bank Loan - fixed amount borrowed from a bank, normally with set repayments of the loan plus interest over a fixed period.

Benefits - payments from the government, for example children.

Brand - names on product labels. Well - known band is a valuable asset.

Brand image - Many business angle their marketing to try give their brand a desired characteristic.

Break Even point - level of output at which fixed and variable costs are just covered. At 0.

Business Plan - document setting out a proposal for a business. Great way to raise capital.

Cash Flow - A calculation of cash coming into a business and payments going out. Cash flow projections are important in planning.

Collateral - something of value used to gurantee a repayment eg. a house.

Commodity product - standard item. No differentation between output of alternate supplier. Minerals and basic foods.

Consumer Price Index - a measure of the rate of inflation. Basedon spending of consumers.

Contribution - Revenue gained from a scale - direct costs. I can meet fixed costs or be part of profit once fixed costs have been covered.

Corportate Resposibilty -