Business unit 1 definitions

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business aim
A stated target for the future e.g. surviving
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Business objective
A CLEARLY DEFINED target for a business to achieve over a certain period of time
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growth
Increase in turnover, market share/profit
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Market share
the proportion of total market sales sold by one business
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Customer satisfaction
How happy the customer is with the product/service
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Ethics
moral questions which decisions are made and the impact the business has on its internal and external environment
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turnover
value of sales made during a trading period, also called revenue
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Business plan
a statement showing how a business sets out to achieve its aims and objectives
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funding
the capital provided for the various stages of business growth by different sources of finance either on a short or long term basis
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Forecast
a technique where the business attempts tp estimate future sales or other financial variables
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Risk
potential for loss but rewards business in calculated gamble
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Sole trader
the most common form off business, just one person
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Partnership
The simplest way two or more people can be in business together where they are jointly responsible for debts
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Unlimited liability
unincorporated business such as sole traders and partnerships have thus, The owners are responsible for all of the businesses debts
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5 Sole trader benefits
simple and quick, inexpensive,profit kept by owner,owner has complete control, hours can be tailored by owner
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4 drawbacks for sole trader
unlimited liability, raising additional finance is difficult, decisions all made by owner - no expertise, reliant on health of owner
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3 benefits of partnership
few procedures to set up, expertise of no. of people combined, many sources of finance
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6 drawbacks of partnerships
ltd liability, profit is shared, max of 20 people, other decisions must be honoured, disagreements, partnership ends as soon as one partner leaves
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Incorporation
Forming a ltd liability company such as a private limited company or PLC
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Limited liability
investors/shareholders in a limited company can only lose their shares if the bruin mess fails they cannot be firced to sell their assets to pay off the firms debts
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Technology
use of e-technology, internet and e-mail to create a virtual market
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Logistics
process of buying managing and delivering goods from the point of manufacture to the end of the consumer
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Market
buyer and seller come together to exchange goofs for money. Face to afce or online
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Mail order
direct marketing trough mail shots leading to goofs being delivered to the customer
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Market research
research that enables the firm to find out about their market, customers and potential customers
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Product differentiation
attempting to make your products stand out from those of your rivals through advertising, design or different product features
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Channel of distribution
the method used to transfer goods or services from producers to final consumers
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e-commerce
transactions between people and business carried out entirely via the internet
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Forecast
a technique where the business attempts to predict future sale, cash flow or other financial variables
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Cash flow forecast
a prediction of a business future cash inflow and outflows showing the closing balance
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Net cash flow
difference between cash in and out of business over a time period
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recruitment
attracting people for a job vacancy
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Wage
when an employee is paid a fixed amount for each hour or day they work
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salary
when a worker is paid a fixed amount per month or year, no matter what hours they work
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Pension
payments made to retired workers in addition to the state pension
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Nn monetary rewards/ Fringe benefits
rewards to employees that do not involve the direct payment of money to them
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Commission
when the employee gets a percentage for the amount they sell
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Job production
making one off specialised [products for each customer
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Batch production
groups of identical items that pass through different stages of the production process at the same time
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Operational efficiency
producing goods and services to an acceptable standard w as few resources as possible yo keep the costs per unit low
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Unit costs
the average cost of making each unit
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specialisation
work is dived into operate tasks or jobs that allow workers to become skilled at one of them
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ICT
The use of electronic energy to gather, store process and communicate information
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robot
a computer controlled program machine able to perform a physical task
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computerised stock controlled programs
use of computers to keep records of all stocks and reorder necessary stock automatically
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CAD Computer aided design
using computer based tools to design products such as buildings car and clothes
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quality product
a good that meets customer expectations and therefore is fit for purpose
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customer expectation
minimum quality standards for a product or service that is acceptable to consumers
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Quality assurance
a system of agreeing and meeting quality standards at each stage of production
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customer service
providing services to customers before during and after purchase to standards that meet their expectations
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consumer protection
laws that protect the interests of consumers when buying goods or services
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Other cards in this set

Card 2

Front

A CLEARLY DEFINED target for a business to achieve over a certain period of time

Back

Business objective

Card 3

Front

Increase in turnover, market share/profit

Back

Preview of the back of card 3

Card 4

Front

the proportion of total market sales sold by one business

Back

Preview of the back of card 4

Card 5

Front

How happy the customer is with the product/service

Back

Preview of the back of card 5
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