Business A Level Key Terms

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What is quantitative market research?
The collection of information based on opinions, attitudes, beliefs and intentions (subjective factors(
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What are inferior goods?
Goods that have negative income elasticity of demand - demand rises when real income falls
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What is a sample?
A group of respondents or factors whose views or behaviour should be representative of the target market as a whole.
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What is a Niche Market?
A small identifiable segment of a larger market, where customers will have specific needs and wants.
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What is the private sector?
The part of the economy that is owned and operated by the private individuals whose main aim is to make a profit.
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What is the Boston Matrix
A method of analysing the products in a business's portfolio based on relative market share and market growth.
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What is a mass market?
The largest part of the market, with similar products and customer tastes.
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What is a trade market?
A market in which businesses will sell to other businesses such as retailers, wholesalers, and other supply chain businesses instead of the consumer.
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What does monopolistic mean?
A type of market with a large number of relatively small firms selling similar products.
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What are public goods?
Goods which are non-diminishing and non-exclude-able and are provided by the public sector.
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What is quote sampling?
Dividing the population to be researched into a number of groups which share specific characteristics.
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What is market size?
The measurement of the size of total sales in a market expressed in either sales (£) or volume (units)
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What is marketing segmentation?
A method of breaking a market down into groups based on personality, lifestyle and behaviour;
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What does "Above the line" promotion mean?
Paid for communication using mass media, usually not targeted. eg advertising on TV or in the newspapers.
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What is a market orientated approach?
A business that makes decisions based on customers' needs and wants, rather than what it thinks is right for the customer.
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What is the margin of safety?
The difference between actual output and break even output
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What is contribution based pricing?
A pricing strategy which maximises the profit from an individual product, based on the difference between the product's price and variable costs.
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What is Direct Cost?
Costs that arise specifically from the production of a product or the provision of a service.
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What does the term 'Footloose' refer to?
Businesses that move from location to location, basing themselves wherever best suits their needs at a particular point in time.
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What is a product orientated approach?
A business that develops products based on what it is good at making or doing, rather than what a customer wants.
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What is contribution?
The difference between sales and variable costs of production, used to calculate how much selling products actually contributes to profits.
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What does 'promotion' mean?
Bringing a product or range of products to the attention of both existing and potential customers.
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What is Channel Distribution
Routes through which a product passes in moving from manufacturer to the consumer.
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What is 'Public relations'?
Activities where a business manages its relationships with different parts of the public, for example customers and local communities.
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What does the term 'containerisation' refer to?
The use of containers in the shipping industry in order to increase the efficiency and scale of distribution.
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What is an incorporated business?
A business which has a separate legal identity to its owners.
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What is debt factoring?
The sale of debts to a third party such as a bank, in return for a percentage of the value of the debts.
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What does the term 'personal selling' refer to?
Where businesses use people (the ''Sales Force'') to sell the product after meeting face-to-face with the customer.
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What do the terms 'middleman' and 'intermediary' refer to?
A firm or person who acts as a link between other people in the distribution channel (wholesaler, agent)
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What does unlimited liability mean?
Where the owners are personally liable for all debts incurred by a business and personal belongings can be taken to repay debts.
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What is a co-operative?
An organisation owned and run jointly by its members such as customers or employees.
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What is a business plan?
A written document describing the nature of the business, its objectives, marketing strategy and financial projections.
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What is a social enterprise?
A type of business organisation which does not have profit as its main objective ,for example charities and Fairtrade organisations.
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What is a budget?
A financial plan that is prepared and agreed in advance for a specific time period.
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What does the term venture capitalists stand for?
Professional investors in small to medium sized businesses (SMEs) which are usually considered risky by traditional lenders (i.e banks)
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What is 'Sale and Lease back?'
The selling of assets (buildings, machinery etc) to a finance company and then leasing the asset back.
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What is a variance?
The difference between actual and planned figures which might be favourable or adverse.
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What does the term 'overtrading' refer to?
Where a business expands too quickly, putting pressure on short term finance.
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What are Social and welfare economies of scale?
Where larger firms are more likely to be able to provide additional benefits for employees such as pension funds and sports facilities.
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What is a LIFO?
Issuing stock from the latest rather than the earliest deliveries.
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What does the term 'Diseconomies of scale' refer to?
When a business grows so large that it leads to a rise in the costs per unit.
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What does 'lead time' refer to?
The time difference between an order being placed and received.
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Other cards in this set

Card 2

Front

What are inferior goods?

Back

Goods that have negative income elasticity of demand - demand rises when real income falls

Card 3

Front

What is a sample?

Back

Preview of the front of card 3

Card 4

Front

What is a Niche Market?

Back

Preview of the front of card 4

Card 5

Front

What is the private sector?

Back

Preview of the front of card 5
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Comments

lucy rollins

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last question is wrong

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