Business studies flashcards

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a business which sells or supplies products to another business
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any person or organisation which buys or is supplied with a product by a business
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The person who ultimately uses a product
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where buyers and sellers meet to exchange goods and services
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market research
The process of gaining information about customers, competitors and market trends through collecting primary and secondary data
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Primary(or field) research
Gathering new information which has not been collected before
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4 examples of primary research?
Surveys, questionnaires, focus groups and observation
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What is a focus group?
A small group of people who talk together about a product or idea and their responses are recorded by the researcher
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What is meant by observation?
Looking at and recording events.
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2 examples of observation?
One example is looking at and recording how people or other business behave. Another is conducting an experiment i.e. a prototype and observing its reactions.
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those who provide data for a survey
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Secondary(or desk) research
Gathering already existing data
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4 examples of secondary research?
Sales records, government statistics, newspaper articles and reports from market research groups
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qualitative data
information about opinions, judgements and attitudes
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quantitative data
data that can be expressed as numbers and statistically analysed
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market segment
part of a market that contains a group of buyers with similar buying habits, such as age or income
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price sensitive
where the price of the product is very important in the decision about whether or not to buy
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gap in the market
occurs when no business is currently serving the needs of customers for a particular product
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product range
a group of similar products made by the same business, like a number of different soap powders
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a named product which customers can differentiate from other products and which they can identify
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brand image
the impression that a customer has in their mind about the brand
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added value
the difference between what a business pays its suppliers and the price it charges for the product
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unique selling point/USP
a characteristic of a product that makes it different from other similar products e.g. design,quality or image
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the right given by one business to another to sells goods or services using its name
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the business that gives franchisees the right to sell its product in return for a fixed sum of money
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a business that agrees to manufacture, distribute or provide a branded product under the licence of a franchisor
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3 advantages of a franchisee
training, an established brand name, an exclusive area(not in competition with its brother franchises)
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a disadvantage of a franchisee
the initial investment can be very high, and have to pay a royalty of a proportion of their sales to franchisor
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difference between goods and services
goods are tangible and physical, services are intangible and non-physical
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lateral thinking
thinking 'outside the box'
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blue skies thinking
a technique d creative thinking where participants are encouraged to think of as many ideas as possible about an issue or problem
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what colour are the six thinking hats?
white, red, black, yellow, green blue
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What do the six thinking hats mean?
white=thinking about facts. red=thinking about emotions. black=thinking about problems. yellow=thinking about positive aspects. green=lateral thinking. blue=thinking about thinking
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the process of transforming inventions into products that can be sold to customers
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right of ownership of an invention when it is registered with the government
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legal ownership of material e.g books which prevents them being copied by others
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the symbol, sign, or other feature of a product or business that can be protected in law
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ability to look at something new, in different ways, and try to make it happen
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financial objectives
targets expressed in money terms
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income before deducting costs
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fixed costs
costs that do not vary with the output such as salaries and rent
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variable costs
costs which change directly with the number of products made by a business such as buying raw materials
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total costs
total costs=fixed costs+variable costs
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when a business can no longer pay its debts
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cash flow
the flow of cash in and out of a business
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the cash flowing into a business, its receipts
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the cash flowing out of a business, its payments
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net clash flow
net cash flow=inflow-outflow
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cash flow forecast
a prediction of how cash with flow though a business in the future
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opening balance
the amount of money in a business at the start of the month
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closing balance
the amount of money in a business at the end of a month
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cumulative cash flow
the sum of money that flows through a business over time
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trade credit
where a supplier gives a customer a period of time to pay a bill for goods or dervices
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share capital
the value of money which belongs to its shareholders
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a share of the profits of a company received by shareholders
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retained profit
money that is kept from the profit to pay for further investment in the business
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when a business borrows more money from a bank than is actually in the account. They are later charged interest.
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Other cards in this set

Card 2


any person or organisation which buys or is supplied with a product by a business



Card 3


The person who ultimately uses a product


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Card 4


where buyers and sellers meet to exchange goods and services


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Card 5


The process of gaining information about customers, competitors and market trends through collecting primary and secondary data


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