Business Studies (Key Definitions)

Key Terms

Business- Something that provides a good or a service.

Gap in the market- Where there is a demand for a good or service that is not currently being met by any businesses.

Entrepreneur- Someone that starts up a business.

Stakeholders- Those that have a stake or interest in the performance of a business. *Internal stakeholders = people within the business that have a stake or interest in the performance of a business.

Aims- Long term goals a business can work towards.

Business plan- The plan for a business as to where they want to go and how they will get there.

Business location- Where a business is located.

Sole trader- A business owned by one person.

Partnership- A business owned by 2-20 people.

Unlimited liability- When the owners posessions are at risk because of the debts of their business.

Limited liability- When the owners posessions are not at risk even if their business has debt.

Public limited companies- Businesses that can sell shares on the stock exchange.

Public sector businesses- Businesses owned by the government.

Franchising- Big named businesses allowing entrepeneurs to sell products under their name. 

Centralised structure- A business that makes decisions by a few people in the centre of the business.

Decentralised structure- A business that spreads decision making.

Organisational charts- Charts showing the structure of a business.

Tall structure- Businesses that have lots of layers within the business structure.

Flat structure- Businesses that have few layers within the business structure.

Market research- Researching the market.

Primary/field research- First hand research.

Secondary/desk research- Research from what has already been produced.

Quantitative data- Data that is in numerical form.

Qualitative data- Data that is opinions and views.

The Boston Matrix- A way to analyse a product portfolio.

Product life cycle- The life cycle a product goes through in terms of levels of demand.

Cost plus pricing- Adding a percentage of profit to a products selling price.

Skimming pricing- Having a high price for a new product when people are willing to pay then decreasing the price later.

Penetration pricing- A low price on a product to gain market share.

Loss leaders- A low price…