Adding Value - changing inputs in a way that customers see as beneficial.
Aggregate Demand - measure of all the spending in the economy.
Assertation - making a claim not supported by evidence.
Assets - useful or valuable. Premises, equitment, and goodwill are examples.
Autocratic - dictorial power. Decisions handed down for implemation.
Bank Loan - a fixed amount borrow from a bank, set repayments of the loan plus interest. Fixed period of time to pay it.
Benefits - gains often payments from government eg. children or the disabled.
Brand - names on product labels. A well known brand is a valuable asset.
Busines Plan - document settng out a propsal for a new business, good way to rasie capital.
Cash flow - calculation of cash coming into a business and payments going out.Cash flow projections are important in planning.
Collateral - something of value uses to gurantee a repayment of a loan eg house
Consumer Price Index - rate of inflation (a measure) based on a weight of prices from consumer spending.
Corporate resposility - businesses taking into consideration towards their stakeholders.
Cost of sales - directs costs of things used in the production process eg labour
Cost - plus pricing - setting prices by calculation the level of costs and adding a margin for profit which VARIES.
Creditor - someone you owe a debt too eg a bank
Customer loyalty - customers bringing back repeat business. Cheap.
Demand - willingingness to buy (consumers)
Demand curve - less at high price and more at a low price.
Democratic - everyone shares power. Consultation and shared decison making.
Disposable income - how much people have available to spend, takng into taxes and benefits.
Distribution - products from producer to consumer.
Economies of scale - ways in which long run increases in output can reduce costs per unit of output. eg ship does not need two captains
Equilibrium - balance between demand supply.
Exchange rate - price paid for one currency in terms of anothre eg £1=2 dollars.
Gross Domestic Product - main measure economic activity.
Hyperinflation - a situation in which prices rise too rapidily, people lose all confidence in money.
Indirect costs - costs not linked to output. Fixed costs or overheads.
Inferior goods - products we buy less of when rising incomes - switch to more attractive alternatives.
Inflation - sustained rise in the genral level of prices. Could be measured by consumer price index.
Interest rate - charge paid by borrows to lenders for loans.
Laissez - faire - allowng people to operate with as much fredom from interference as possible. Independence.
Lease - a rental agreement.
Limited liability - shareholders/owners not liable for its debts beyond the shares they owe when a busines fails.
Long run - long run is the time it takes to make chang in the fixed assets of a business.
Long tail - modern markets have room for many small niche suppliers alongside large firms eg thanks to the interent
Margin of safety - small surplus of revenue over planned costs to allo developments.
Marketing mix - price, product, place, promotion
Market orientation - setting wishes of customers and what they are willing to pay to guide production and decisons
" postitioning - focusing a product on a partical market segment.
Market segment - a subdivison of the market that has a particular charactertistics.
Monetary policy - use of the Bank of England base rate to influence economc and business activity.
Net profit - sales revene - all costs
Non-price competition - innovation, differnation or advertising to get an advantage over a competitor.
Overheads - indirect costs that are not tied to specific prodcuts. eg rent
Paternalistic - leader is firmly in control but taking into account welfare of workers.
Piece rates - quanity of output from a worker
Primary activity - direct exploitation of land resources eg mining
Primary research - new research. First hand
Private limited company (PLC) - limited liability. one shareholder. cannot offer shares for public sal. Small business do this usually for tax advantages or safety ll.
Product oriented - prioritising product quality
Product positioning - choosing key characteristics to the competition
Public limited company - limitited liablity. Sell shares and advertise to public.
Public sector - organisations owned by the state (LA) rather than private groups.
QuaLITative research - preferences and attitudes.
QuaNTitave research - numerical research eg potential customers or rivals
Satisficers - target a satisfactory performance than profit maximistation. Comfort.
Secondary Market Research - taking information from data already collected by others.
Shareholder - someone who owns shares in a business and is thereforea part -owner to an distributed profits.
Sole - trader - individual who owns and controls a business.
Stakeholder - someone with an interest in the business and its activities. eg workers or suppliers
Start up costs - expenditure to set up a business
Strong pound - high value of the sterling making imports cheapers and exports dear.
Supply curve - a line showing quantities that a market will sell at different price levels.
Theory X - management approach based on the idea than workers are lazy and need supervision.
Theory Y - " that workers want to achieve and can be trusted.
Time lags - between cause and effect eg between output and change in revenue
Trade credit - willingness of supplies to delay payment from their business for goods or services supplied
Trade offs - taking a set back to prioritise another eg a holiday
Variable costs - raw materials, which change with level of output in the short term
Venture capitatilists - lending money to new or expanding businesss in return for interest or part - ownership