Business definitions

?
  • Created by: charem97
  • Created on: 02-01-14 21:21
Enterprise
The process by which new businesses are formed in order to offer products and services in a market
1 of 54
Entrepreneur
An individual who sets up and runs a new business and takes on the risks associated with the business
2 of 54
Risk
The probability or chance that hoped for outcomes will not occur
3 of 54
Opportunity cost
The cost of missing out on the next best alternative
4 of 54
Patent
The right to be the only user of producer of a specified product or process
5 of 54
Trademarks
A word,symbol or phrase used to identify a particular company's product and make it seem different from other companies products
6 of 54
Copyright
The exclusive and assignable legal right given to the originator for a fixed number of years to print,perform,publish ,film or record literacy ,artistic or musical material
7 of 54
Added value
The difference between the price of a finished product and cost of inputs used in making it
8 of 54
Niche market
A smaller,specialist part of a larger market where customers have particular needs and wants
9 of 54
Franchise
The business format which a franchisor allows a franchisee to use under licence
10 of 54
Franchisor
The ultimate owner of the franchise format
11 of 54
Franchisee
The business which is granted the right to operate a franchise on behalf of the franchisor
12 of 54
Market research
Information that helps explain the size, structure and nature of a market
13 of 54
Primary research
Information collected first hand for a specific research purpose (field research)
14 of 54
Secondary research
Information that already exists (desk research)
15 of 54
Qualitative research
Research based on opinions,attitudes, beliefs and intentions - asks questions
16 of 54
Quantitative research
Based on proper sales and provides insights based on numerical values and data
17 of 54
Market
A market is any location where buyers and sellers come together to transact with each other
18 of 54
Demand
How much customers are prepared and willing to buy at a given price
19 of 54
Market share
Proportion/ percentage of a market owned by each competitor or product
20 of 54
Market growth
The percentage growth in side of a market over a period of time
21 of 54
Sole trader
a business owned by a single individual
22 of 54
Partnership
Where a business is wonder by two or more people
23 of 54
Limited company
A separate corporation owned by shareholders
24 of 54
Unlimited liability
The owner is liable for all the debts of the business
25 of 54
Limited liability
The liability of the owners is limited to the amount in which they initially invested
26 of 54
Location
The physical place from which a business is operated and controlled
27 of 54
Quantitative factors
Market research concerned with collecting data that can be quantified - sales statistics
28 of 54
Qualitative factors
Market research concerning collecting data on attitudes ,opinions ,beliefs and intentions
29 of 54
Full time employee
Contracted employee who works more than 30 hours per week
30 of 54
Part time employee
Person contracted to work less than 30 hours per week
31 of 54
Temporary employee
Employment is for a specific period and once complete the employment is terminated or renewed
32 of 54
Permanent employee
Employed by the business for a non-specified open-ended period of time
33 of 54
Consultant
Individuals and businesses external to the business that provide specific services and advice
34 of 54
Flexi-time
Employees choose the hours they work outside a standard set of hours set by the employer
35 of 54
Job sharing
Two workers share a full-time job
36 of 54
Term time working
Normal permanent contract, but the employee can take unpaid time off in school holidays
37 of 54
Zero hour contracts
Staff work only the hours in which they are needed - not set
38 of 54
Costs
Incurred in the making and delivery of products and services
39 of 54
Revenue
Amounts earned by a business by selling products and services
40 of 54
Profit
The difference between total revenues and total costs
41 of 54
Variable costs
Costs which change as a result of changes in output
42 of 54
Fixed costs
Costs which do not change in relation to changes in outputs
43 of 54
Breakeven point
The output at which total revenues are equal to total costs
44 of 54
Contribution
The difference between revenues and variable costs
45 of 54
Contribution per unit
Selling price per unit minus variable cost per unit
46 of 54
Margin of safety
The difference between actual output and the break-even output
47 of 54
Cash flow
The movements of cash into and out of a business
48 of 54
Cash flow forecast
A projection ,usually weekly or monthly , of the likely cash inflows and outflows in a business
49 of 54
Budget
A detailed plan of income and expenses expected over a certain period of time
50 of 54
Income (sales) budget
Takes into account factors such as size of the market,existing competitors and their response and the capacity of the business
51 of 54
Expenditure (costs) budget
What it will cost to deliver the planned product and support the business
52 of 54
Profit budget
The difference between the sales budget and the expenditure budget
53 of 54
Business plan
A detailed description of a new or existing business including the company's strategy,aims,objectives,marketing and financial plan
54 of 54

Other cards in this set

Card 2

Front

An individual who sets up and runs a new business and takes on the risks associated with the business

Back

Entrepreneur

Card 3

Front

The probability or chance that hoped for outcomes will not occur

Back

Preview of the back of card 3

Card 4

Front

The cost of missing out on the next best alternative

Back

Preview of the back of card 4

Card 5

Front

The right to be the only user of producer of a specified product or process

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 Planning and financing a business resources »