Business Studies Key Terms:

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"An agreement in which one business buys the rights to sell the goods or services of another business".
Franchise
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The person/business who buys the rights.
Franchisee
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The person/business who sells the rights.
Franchisor
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An individual or group with a direct interest in an organisation's performance.
Stakeholder
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An outline of what a new business will do and how it will do it.
Business plan
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A type of business owned by one person.
Sole Trader
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The personal possessions of the owner are at risk if there are any problems.
Unlimited liability
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A business with between 2 and 20 owners.
Partnership
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Sell shares to family and friends.
Private limited company (Ltd)
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Sell shares on the stock exchange.
Public limited company (Plc)
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Own a percentage of the business and get paid dividends every year.
Shareholders
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The collection of information on actual and potential customers.
Marketing
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The collection of first hand information e.g. surveys, focus groups, customer feedback, observation.
Primary research
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Other name for primary research.
Field research
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The gathering of existing data.
Secondary research
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The four Ps. Price, product, place, promotion.
Marketing mix
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Manufacturer> wholesaler> retailer> consumer.
Traditional
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Manufacturer> retailer> consumer.
Modern
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Manufacturer> cosumer.
Direct
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Charging a premium when you first launch a product and dropping the price as time goes on.
Creaming/skimming
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Charging a super low price to get people into the store and then charging more for replacements or other products.
Loss leader
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Working out cost of making product and adding on a percentage for profit.
Cost plus
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The use of internet for sales.
E-commerce
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To inform customers about products and to persuade them to buy them.
Promotion
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Promotion through mass media that is not personal.
Above the line
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Promotion specific to the target market.
Below the line
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The proportion of sales by once business in a market compared to the total size of the market.
Market share
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A part of market which contains a group of buyers with similar charteristics e.g. age, income, children, pensioners.
Market segment
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Other cards in this set

Card 2

Front

The person/business who buys the rights.

Back

Franchisee

Card 3

Front

The person/business who sells the rights.

Back

Preview of the front of card 3

Card 4

Front

An individual or group with a direct interest in an organisation's performance.

Back

Preview of the front of card 4

Card 5

Front

An outline of what a new business will do and how it will do it.

Back

Preview of the front of card 5
View more cards

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