Business

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  • Created by: Francesca
  • Created on: 13-02-14 10:50
Enterprise
The process in which new businesses are formed and new products or services created and brought to market.
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Entrepreneur
An individual that takes a risk and an idea to market in order to gain a reward.
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Opportunity Cost
The value of the next best opportunity foregone.
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Franchise
When a franchisor gives a franchisee the right to supply its business or service
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Copyright
Legal protection against copying for authors, composers and artists.
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Patent
An official document granting the holder the right to be the only user of a newly invented product for a specific time period
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Trademark
Signs, logos, symbols or words displayed on a company's products which distinguish the brand from other competitors
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Factors of production
4 elements - land,labour,capital and enterprise - used in the production of goods or services
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Adding value
The process of increasing the worth of resources by modifying them
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Added value
Sales revenue-the cost of brought in materials/services
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Unique Selling Point
A feature of a product that allows it to be differentiated from other products
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Business Plan
A report describing the marketing strategy, operational issues and financial implications of a business start-up
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Marketing
The anticipation and satisfying of customers wants in a way that delights the customers and meets the needs of the organisation
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Market Research
The systematic and objective collection, analysis and evaluation of information that is intended to assist the marketing process
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Primary Market Research
The collection of information first-hand for a specific purpse
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Secondary Market Research
The use of information that has already been collected but for a different purpose.
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Qualitative Market Research
The collection of information about the market based on subjective factors such as opinion and reasons.
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Quantitative Market Research
The collection of information about the market based on numbers
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Sample
A group of respondents or factors whose views or behavior should be representative of the target market as a whole
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Random Sample
A group of respondents in which each member of the target population has an equal chance of being chosen
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Quota Sample
A group of respondents comprising of several different segments each with a common feature. The number of interviewees in each classification is fixed to reflect their percentage in the total target population, but the interviewees are not random
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Stratified Sample
A group of respondents selected according to particular features, however the final selection is left to an interviewer.
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Demand
The amount of a product or service that consumers are willing and able to buy at any given price over a period of time
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Market Segmentation
The process of dividing a market into smaller sections (segments) which  contain customers with similar needs and wants 
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Market Growth
The percentage change in sales (volume or time) over a period of time
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Market Share
The & or proportion of the total sales of a product or service achieved by a firm or a specific brand of the product
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Unincorportated
No distinction in law between the business itself and the owner. The identity of the business and the owner is the same. (soletraders or partnerships)
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Incorporated
Has a legal identity that is separate from the individual owners. They can own assets, owe money and enter into contracts. (Private limited companies and public limited companies)
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Unlimited Liability
The owners of the business are liable for all the debts that the business may occur.
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Limited Liability
The liability of the owners of the business is limited to the fully paid-up value of the share capital
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Sole Trader
A business owned by one person. They may operate on their own or may employ others. Unlimited Liability,
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Partnership
A form of a business in which two or more people operate for the goal of making a profit.
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Private Limited Company
Usually run by the family or the small group of individuals that own it
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Public Limited Company
Limited Liability, a share capital of at least over £50,000, at least two shareholders, two directors, a secretary and usually lots of shareholders. "plc"
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Ownership
Providing finance and therefore taking risks
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Control
Managing the organisation and making decisions
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Stakeholders
A group of individuals with an interest in business.
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Bank Loan
A fixed amount loan from a bank which is generally used to finance long‐ term assets 
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Bank Overdraft
When a bank allows individuals to overspend on a current account up to an agreed limit over a stated period of time
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Venture Capital
l  Investment made by specialist funds to finance the launch, early  development or expansion of a private company 
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Personal Sources of Finance
Provided by the owners of the business from their savings or personal wealth
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Infrastructure
The network of utilities such as transport links, sewerage, telecommunications, health services and educational facilities
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Teleworking
Working in a location which is separate from a central workplace, using telecommunication technologies
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Least-cost Site
The business location that allows a firm to minimise its costs
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Total Revenue
Price per unit x Quantity of Units Sold
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Profit
Total Revenue - Total Costs
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Fixed Costs
Costs that do not vary directly with the output in the short run (rent)
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Variable Costs
Costs that vary directly with output in the short run (raw materials)
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Total Costs
Fixed Costs + Variable Costs
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Contribution per Unit
Selling price per unit - variable cost per unit
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Total Contribution
Sales Revenue - Total Variable Costs OR Contribution per Unit x Units Sold
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Breakeven Analysis
Study of the relationship between total costs and total revenue to identify the output at which a business breaks even.
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Breakeven Output
The level of output at which total sales revenue is equal to total costs of production. Fixed Costs/Contribution per Unit
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Cash Flow
The amount of money flowing into or out of a business over a period of time
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Cash Inflows
Receipts of cash, usually from sales of items, payments by debtors, loans received, rent charged, sales of assets and interest received
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Cash Outflows
Payments of cash, usually from purchase of items, payments to creditors, loans repaid or given, rental payments, purchase of assets and interest payments
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Net Cash Flow
Sum of cash inflows - sum of cash outflows over a period of time
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Cash Flow Cycle
The regular pattern of inflows and outflows of cash within a business
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Cash Flow Forecasting
The process of estimating the expected cash inflows and outflows over a period of time.
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Cash Flow Statement
A description of how cash flowed into and out of a business during a particular period of time.
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Liquidity
The ability to convert an asset into cash without loss or delay
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Budget
An agreed plan establishing the policy to be pursued and the anticipated outcomes of the policy
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Management accounting
The production and use of financial and accounting information for internal purposes of planning, review and control.
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Income Budget
The planned income of a business over a period of time.
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Expenditure Budget
Shows the planned expenditure of a business over a period of time.
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Profit Budget
Shows the planned profit of a business over a period of time.
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Other cards in this set

Card 2

Front

An individual that takes a risk and an idea to market in order to gain a reward.

Back

Entrepreneur

Card 3

Front

The value of the next best opportunity foregone.

Back

Preview of the back of card 3

Card 4

Front

When a franchisor gives a franchisee the right to supply its business or service

Back

Preview of the back of card 4

Card 5

Front

Legal protection against copying for authors, composers and artists.

Back

Preview of the back of card 5
View more cards

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