Business Unit 1

?
A place where buyers and sellers meet
Market
1 of 72
What the customer requires from the product or business
Customer Needs
2 of 72
Collecting information about customers, competitors and/or the market.
Market Research
3 of 72
Information that has been gathered for a specific purpose through direct investigation such as observation, surveys and experiments
Primary research
4 of 72
Information that already exists such as accounts and sales records, government statistics, newspaper and internet articles and reports from advertising agencies
Secondary research
5 of 72
Data about opinions, judgements and attitudes
Qualitative data
6 of 72
Data that can be expressed as number and can be statistically analysed
Quantitative data
7 of 72
primary research methods where groups of potential customers are asked about a product
Focus group
8 of 72
marketing tool that enables you to position products to find a gap in the market.
Market map
9 of 72
Part of a market that contains a group of buyers with similar buying habits
Market segment
10 of 72
The identity that a business creates
Brand image
11 of 72
The difference between the price and the cost of making a product. Can be achieved through quality, design, delivery USP and branding
Added value
12 of 72
Unique selling point
USP
13 of 72
Agreement to use the rights and name of another business
Franchise
14 of 72
The business that purchases the rights of the franchise
Franchisee
15 of 72
The business that sells the rights of the franchise
Franchisor
16 of 72
The 4 P's - product, price, promotion and place
Marketing mix
17 of 72
Business owned by 1 person. Has unlimited liability.
Sole trader
18 of 72
Where you are responsible for the whole debts of the business, which means you could lose personal possessions.
Unlimited liability
19 of 72
Where you are only responsible for the amounts you have invested into a business
Limited liability
20 of 72
Value added Tax - a tax on goods and services
VAT
21 of 72
A tax on incomes
Income tax
22 of 72
A tax paid by businesses and individuals towards social security benefits
National Insurance contribution
23 of 72
A tax paid by Ltd and PLC's. A tax on profits.
Corporation Tax
24 of 72
The experience that a customer has when dealing with a business
Customer service
25 of 72
The extent to which a business meets the customer needs
Customer satisfaction
26 of 72
Buying from the same business again
Repeat purchase
27 of 72
Information about the details of the duties of the job.
Job description
28 of 72
Objectives in relation to money e.g. increase sales, increase personal wealth
Financial objectives
29 of 72
Social, ethical objectives usually to benefit the community or others.
Non-financial objectives
30 of 72
Price x number sold
Revenue
31 of 72
Fixed costs + total variable costs
Total costs
32 of 72
Costs that do not change with output
Fixed costs
33 of 72
Costs that change directly with output - e.g. raw materials.
Variable costs
34 of 72
Total revenue - total costs
Profit
35 of 72
Money in the bank, notes and coins
Cash
36 of 72
Flow of money in and out of a business.
Cash flow
37 of 72
Cash coming into the business. Receipts
Inflow
38 of 72
Cash going out of the business. Payments
Outflow
39 of 72
Inflows - Outflows
Net cash flow
40 of 72
When you do not have enough cash for day to day bills
Insolvency
41 of 72
Cash at the start of the month
Opening balance
42 of 72
Opening balance + net cash flow. Becomes the opening balance for the next month
Closing balance
43 of 72
When suppliers give you 30 days to pay for the goods
Trade credit
44 of 72
Materials held by the business. can be raw materials, semi finished goods or finished goods.
Stocks
45 of 72
Someone who has paid money and controls part of the business
Shareholders
46 of 72
External finance from a bank where payments are fixed over a time period
Loan
47 of 72
Long term loan usually for property
Mortgage
48 of 72
Payment given to shareholders
Dividend
49 of 72
Profit which is kept back in the business and used to pay for investment in the company
Retained profit
50 of 72
Paying a monthly sum to use a product without ever owning it.
Leasing
51 of 72
Borrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn
Overdraft
52 of 72
The desire to want to complete a task
Motivation
53 of 72
the willingness of customer to buy a product
Demand
54 of 72
the willingness of businesses to supply/produce a product
Supply
55 of 72
products that are the same e.g. cocoa, oil, wheat and gold
Commodity
56 of 72
the cost of borrowing money or the reward for saving money
Interest Rate
57 of 72
stages that the economy goes through
Business Cycle
58 of 72
employment is high, demand is high, profits are high
Boom
59 of 72
unemployment increases, demand falls, profits fall
Recession
60 of 72
someone with an interest in a business
Stakeholder
61 of 72
the value of one currency expressed as another
Exchange Rate
62 of 72
purchasing goods that were made abroad
Import
63 of 72
selling UK made goods abroad
Exports
64 of 72
creating a brand new product or process
Invention
65 of 72
developing an existing idea
Innovation
66 of 72
protecting ideas
Patent
67 of 72
protecting images, logos and signs
Trademark
68 of 72
protecting books, music and films
Copyright
69 of 72
thinking outside of the box
Lateral thinking
70 of 72
quantifying the chance of something not happening
Calculated risk
71 of 72
someone willing to take a risk to undertake a new business venture.
Entrepreneur
72 of 72

Other cards in this set

Card 2

Front

Customer Needs

Back

What the customer requires from the product or business

Card 3

Front

Market Research

Back

Preview of the back of card 3

Card 4

Front

Primary research

Back

Preview of the back of card 4

Card 5

Front

Secondary research

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Starting a business resources »