Business

?
  • 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.
1 of 66
Entrepreneur
An individual that takes a risk and an idea to market in order to gain a reward.
2 of 66
Opportunity Cost
The value of the next best opportunity foregone.
3 of 66
Franchise
When a franchisor gives a franchisee the right to supply its business or service
4 of 66
Copyright
Legal protection against copying for authors, composers and artists.
5 of 66
Patent
An official document granting the holder the right to be the only user of a newly invented product for a specific time period
6 of 66
Trademark
Signs, logos, symbols or words displayed on a company's products which distinguish the brand from other competitors
7 of 66
Factors of production
4 elements - land,labour,capital and enterprise - used in the production of goods or services
8 of 66
Adding value
The process of increasing the worth of resources by modifying them
9 of 66
Added value
Sales revenue-the cost of brought in materials/services
10 of 66
Unique Selling Point
A feature of a product that allows it to be differentiated from other products
11 of 66
Business Plan
A report describing the marketing strategy, operational issues and financial implications of a business start-up
12 of 66
Marketing
The anticipation and satisfying of customers wants in a way that delights the customers and meets the needs of the organisation
13 of 66
Market Research
The systematic and objective collection, analysis and evaluation of information that is intended to assist the marketing process
14 of 66
Primary Market Research
The collection of information first-hand for a specific purpse
15 of 66
Secondary Market Research
The use of information that has already been collected but for a different purpose.
16 of 66
Qualitative Market Research
The collection of information about the market based on subjective factors such as opinion and reasons.
17 of 66
Quantitative Market Research
The collection of information about the market based on numbers
18 of 66
Sample
A group of respondents or factors whose views or behavior should be representative of the target market as a whole
19 of 66
Random Sample
A group of respondents in which each member of the target population has an equal chance of being chosen
20 of 66
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
21 of 66
Stratified Sample
A group of respondents selected according to particular features, however the final selection is left to an interviewer.
22 of 66
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
23 of 66
Market Segmentation
The process of dividing a market into smaller sections (segments) which  contain customers with similar needs and wants 
24 of 66
Market Growth
The percentage change in sales (volume or time) over a period of time
25 of 66
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
26 of 66
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)
27 of 66
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)
28 of 66
Unlimited Liability
The owners of the business are liable for all the debts that the business may occur.
29 of 66
Limited Liability
The liability of the owners of the business is limited to the fully paid-up value of the share capital
30 of 66
Sole Trader
A business owned by one person. They may operate on their own or may employ others. Unlimited Liability,
31 of 66
Partnership
A form of a business in which two or more people operate for the goal of making a profit.
32 of 66
Private Limited Company
Usually run by the family or the small group of individuals that own it
33 of 66
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"
34 of 66
Ownership
Providing finance and therefore taking risks
35 of 66
Control
Managing the organisation and making decisions
36 of 66
Stakeholders
A group of individuals with an interest in business.
37 of 66
Bank Loan
A fixed amount loan from a bank which is generally used to finance long‐ term assets 
38 of 66
Bank Overdraft
When a bank allows individuals to overspend on a current account up to an agreed limit over a stated period of time
39 of 66
Venture Capital
l  Investment made by specialist funds to finance the launch, early  development or expansion of a private company 
40 of 66
Personal Sources of Finance
Provided by the owners of the business from their savings or personal wealth
41 of 66
Infrastructure
The network of utilities such as transport links, sewerage, telecommunications, health services and educational facilities
42 of 66
Teleworking
Working in a location which is separate from a central workplace, using telecommunication technologies
43 of 66
Least-cost Site
The business location that allows a firm to minimise its costs
44 of 66
Total Revenue
Price per unit x Quantity of Units Sold
45 of 66
Profit
Total Revenue - Total Costs
46 of 66
Fixed Costs
Costs that do not vary directly with the output in the short run (rent)
47 of 66
Variable Costs
Costs that vary directly with output in the short run (raw materials)
48 of 66
Total Costs
Fixed Costs + Variable Costs
49 of 66
Contribution per Unit
Selling price per unit - variable cost per unit
50 of 66
Total Contribution
Sales Revenue - Total Variable Costs OR Contribution per Unit x Units Sold
51 of 66
Breakeven Analysis
Study of the relationship between total costs and total revenue to identify the output at which a business breaks even.
52 of 66
Breakeven Output
The level of output at which total sales revenue is equal to total costs of production. Fixed Costs/Contribution per Unit
53 of 66
Cash Flow
The amount of money flowing into or out of a business over a period of time
54 of 66
Cash Inflows
Receipts of cash, usually from sales of items, payments by debtors, loans received, rent charged, sales of assets and interest received
55 of 66
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
56 of 66
Net Cash Flow
Sum of cash inflows - sum of cash outflows over a period of time
57 of 66
Cash Flow Cycle
The regular pattern of inflows and outflows of cash within a business
58 of 66
Cash Flow Forecasting
The process of estimating the expected cash inflows and outflows over a period of time.
59 of 66
Cash Flow Statement
A description of how cash flowed into and out of a business during a particular period of time.
60 of 66
Liquidity
The ability to convert an asset into cash without loss or delay
61 of 66
Budget
An agreed plan establishing the policy to be pursued and the anticipated outcomes of the policy
62 of 66
Management accounting
The production and use of financial and accounting information for internal purposes of planning, review and control.
63 of 66
Income Budget
The planned income of a business over a period of time.
64 of 66
Expenditure Budget
Shows the planned expenditure of a business over a period of time.
65 of 66
Profit Budget
Shows the planned profit of a business over a period of time.
66 of 66

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

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all BUSS1 resources »