BUSINESS STUDIES REVISION

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Enterprise
almost any business or organisation can be called an enterprise but the term usually refers to the process by which new busines are formed and new products and services created and brought to the market.
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Entrepreneur
idividuals who have an idea that they develop by setting up a new business and encourage it to gorw. They take the risk and the subsequent profits that come with success or the losses that come with failure.
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Oppurtunity Cost
The real cost of taking a particular action or the next best alternative.
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Franchise
When a business gives another business the right to supply its product 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 or producer of a newly invented product or process for a specified period.
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Trademark
Signs, logos, symbols or words displayed on a companies products or on its advertising, including sounds or music, which distinguish its brands from those of its competitors.
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Factors or production
the four elements - land, labour, capital and enterprise
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Production
The process whereby resources are converted into a form that is intended to satisfy the requirements of the potential customers
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Output
The finished products resulting from the transformation process
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Primary Sector
Thos organisations involved in extracting raw materials.
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Secondary Sector
Those organisations involved in processing or refining the raw materials from the primary sector into finished or semi-finished products
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Teritiary Sector
Thos organisations involved in providing services to customers and to other businesses in either the public or private sector.
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Adding Value
The process of increasing the worth of resources by modifying them.
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Unique Selling Point
A feature of a product or service that allows it to be differentiated from other products.
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Business Plan
A report describing the marketing strategy, operational issues and finacial implications of a business start - up.
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Marketing
The anticipation qand satisfying of customers wants in a way that delights consumers and also 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 purpose.
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Secondary Market Research
The use of information that has already been collected for a diffferent purpose.
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Qualititive Market Research
The collection of information about the market based on subjective factors such as opinions and reasons.
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Quantitive Market Research
The collection of information about the market based on numbers.
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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 several different segments each sharing a common feature e.g. gender.
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Stratified Sample
A group of respondents selected according to particular features e.g. gender/age.
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The Market
A place where buyers and sellers come together.
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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 classification of customers or potential customers into groups or sub-groups each of which responds differently to different products or marketing approaches.
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Segmentation Analysis
Where a firm uses quantitive and qualititive data or information to try to discover the types of consumer who buy its products and why.
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Market Size
The volume of sales of a prodct or the value of sales of a product.
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Market Growth
The percenatge change in sales over a period of time.
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Market Sharer
the percentage or proportion of the total sales of a product or service achieved by a firm or a specific brand of a product.
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Unlimited Liability
a situation in which the owners of a business are liable for all the debts the business may incur.
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Limited lIability
a situation in which the liability of the owners od a 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. The owner may operate on his or her own or may employ other people.
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Partnership
a form of business in which two or more people operate for the common goal of making profit.
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Private Limited Company
a small to medium sized business that is usually run by the family or the small group of individuals who own it.
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Public Limited Company
a business with limited liability; a share capital of over £50,000, at least two shareholders, two directors, a qualified company secretary and usually a wide spread of shareholders. It has "PLC" after the company name.
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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
any group of individuals with an interest in business. This includes employees, customers, shareholders and the local community.
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Ordinary Share Capital
money given to a compnay by shareholders in return for a share certificate that gives them part ownership of the company and entitles them to a share of the profits.
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Loan Capital
money received by an organisation in return for the organisations agreement to pay interest during the period of loan and to repay the loan within an agreed time.
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Bank Loan
a sum of money provided to a firm or an individual by a bank for a specific, agree purpose.
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Bank Overdraft
when a bank allows an individual or organisation to overspend its current account in the bank to an agreed limit and for a stated period of time.
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Venture Capital
finance that is provided to small or medium sized firms that seek growth but which may be considered as risks by typical share buyers or other lenders.
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Teleworking
working in a location that is separate from a central workplace, using telecommunication technologies.
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Least-cost Site
the business location that allows a firm to minimize its costs.
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Qualitative Factors
based of opinions and wishes of individuals. these factors can influence business decisions because am entrepreneur will want to include his or her own wishes and preferences in decisions taken.
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Total revenue
the income received from an organisations activities. Total revenue = price per unit x quantity of units sold (e.g. if price is £5 and 10 units are sold then the total revenue is £5 x 10 = £50)
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Profit
the difference between the income of a business and its total costs. Profit = total revenue - total costs.
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Fixed Costs
cost that do not vary directly with output in the short run.
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Variable Costs
costs that vary directly with output int he short run.
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Total Costs
the sum of fixed costs and variable costs.
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Contribution Per Unit
selling price per unit - variable cost per unit.
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Total Contribution
the difference between total revenue and total variable costs.
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Breakeven Analysis
study of the relationship between total costs and total revenue to identify the output at which business breaks even.
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Breakeven Output
the level of output at which sales revenue is equal to total costs of production.
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Cash Flow
the amounts of money flowing in and out of q business over a period of time.
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Cash Inflows
receipts of cash, typically arising from sales of items, payments by debtors, loans received, rent charged, sale of assets and interest received.
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Cash Outflows
payments of cash, typically arising from the 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
the sum of cash inflows to an organisation minus the 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 cash outflows over a period of time. cash flows is often seasonal, so it is advisable to forecast for a period of 1 year.
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Cash Flow Statement
a description of cash flowed into and out of the 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 that policy.
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Income Budget
shows the agreed, planned of income of a business over a period of time. it may also be described as revenue budget or sales budget.
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Expenditure Budget
shows the agreed, planned expenditure of a business over a period of time.
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Profit Budget
shows the agreed, planned profit of a business over a period of time.
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Other cards in this set

Card 2

Front

idividuals who have an idea that they develop by setting up a new business and encourage it to gorw. They take the risk and the subsequent profits that come with success or the losses that come with failure.

Back

Entrepreneur

Card 3

Front

The real cost of taking a particular action or the next best alternative.

Back

Preview of the back of card 3

Card 4

Front

When a business gives another business the right to supply its product 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
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