Business Studies- Unit 2

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  • Created by: Nicola
  • Created on: 15-04-13 20:03
Aims
The overall goals of a business or organisations "what the business is trying to receive"
1 of 68
Business Ethics
Where a business does the right thing- behaving in a correct way
2 of 68
Company
A business with a separate legal identity that is owned by shareholders
3 of 68
Director
Responsible for managing a company on behalf of shareholders
4 of 68
Diseconomies of scale
Occurs when costs per unit increase as a business expands
5 of 68
Diversification
A strategy where a business expands by producing new products for new markets
6 of 68
Dividend
Payment made by a company to its shareholders out of profits earned
7 of 68
Economies of Scale
A benefit of increasing business size- unit costs fall as production output rises
8 of 68
Export
Where a business sells to customers located in another country
9 of 68
External Growth
Methods of business growth using acquisitions, mergers, takeovers etc
10 of 68
Franchise
Where a business acquires the right to use the name and products of another business
11 of 68
Franchisee
The business which runs a franchise in a specific territory or area
12 of 68
Franchisor
The seller of a right to operate a franchise
13 of 68
Globalisation
The trend for products and services to be traded and produced around the world
14 of 68
Horizontal Integration
Integration which involves business joining together that are at the same stage of the production process
15 of 68
Innovation
The use of technology & design to come up with new products and services
16 of 68
Limited Liability
The protection enjoyed by the shareholders who can only lose the money they have put in the company
17 of 68
Location
The place where a firm decides to conduct its business
18 of 68
Market Share
The proportion of a market that is heldy by a business, product or brand
19 of 68
Merger
Where two businesses of equal size are joined together
20 of 68
Multinational
A business that has operations in several countries
21 of 68
Objectives
The specific targets that a business wants to achieve
22 of 68
Offshoring
Where a firm has work done for it by people or suppliers located overseas
23 of 68
Organic Growth
Growth which occurs as a business sells more of its own products
24 of 68
Private Company
The most common kind of limited company in the UK
25 of 68
Public Company
The kind of limited company whose shares can be bought on a recognized stock exchange
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Quota
A limit on the quantity of imported goods and services that can be brought into a domestic market
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Shareholders
Owners of a company
28 of 68
Social Costs
Costs arising from business activity that are paid for by society in general
29 of 68
Stakeholder
An individual or group that is directly or indirectly affected by the actions of a business
30 of 68
Stock Exchange
A place where the shares of public companies are bought and sold
31 of 68
Strategy
The way in which a business sets out to achiece its aims and objectives
32 of 68
Subsidiary
A company that is owned by another company
33 of 68
Takeover
Where a business acquires another business
34 of 68
Tariff
A tax levied on the import of goods and services
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Unlimited Liability
The liability faced by sole traders and partners
36 of 68
Advertising
Paid-for communications, aimed at informing or persuading
37 of 68
Boston Matrix
A model to help a business manage a product portfolio
38 of 68
Brand
Any recognizable name, logo or symbol that identifies a product
39 of 68
Cash Cow
Product or brand with a high share of a mature or declining market
40 of 68
Cost-plus
Method of setting a price based on the costs of production
41 of 68
Direct Marketing
Where a promotional message is sent straight to the potential customer
42 of 68
Distribution Channel
How a business gets its products to the end customer
43 of 68
Loss Leader
Where a product is sold for less than its cost in order to attract customers into a store to buy it
44 of 68
Market Segment
Group of customers with similar needs and wants
45 of 68
Market Share
The proportion of a market that is owned by a specific business, product or brand
46 of 68
Marketing Mix
The marketing combination of product, price, promotion and place
47 of 68
Niche
A market where the product concerned appeals to a limited number of customers
48 of 68
Penetration Pricing
Setting a low price to gain a higher share of a market
49 of 68
Place
The part of the marketing mix that focuses on where a firm's products are sold
50 of 68
Price Skimming
Charging a higher price to benefit from customers who want a new product first
51 of 68
Price
How much customers pay when they buy goods and services
52 of 68
Product
Goods or services produced by a business
53 of 68
Product Extension
Strategies used to prolong the life of a product or brand stop sales from declining
54 of 68
Product Life Cycle
A theory which predicts the stages a product goes through
55 of 68
Product Portfolio
The range of products sold by a business
56 of 68
Product Range
The collection of products sold by a business
57 of 68
Promotion
The range of methods by which a business makes it products known to customers
58 of 68
Public Relation
The promotion of a business through news stories, sponsorship and similar activities
59 of 68
Retailer
Buys products from manufacturers and wholesalers and sells onto end customers
60 of 68
Sales Promotion
Techniques such as discounted prices, money-off coupons and BOGOF deals
61 of 68
Segmentation
The process of dividing up customers into groups based on their dig=fferent needs and wants
62 of 68
Sponorship
Where a business pays for an event or activity to gain publicity
63 of 68
Star
Products or brand with a high share of a fast growing market
64 of 68
Target Market
The group of consumers or customers aimed at by a business
65 of 68
Telesales
Promoting products by calling potential customers using the phone
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USP
The special features of a product that can be used to attract customers
67 of 68
Wholesaler
Distributor that buys in bulk and sells onto retailers
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Other cards in this set

Card 2

Front

Where a business does the right thing- behaving in a correct way

Back

Business Ethics

Card 3

Front

A business with a separate legal identity that is owned by shareholders

Back

Preview of the back of card 3

Card 4

Front

Responsible for managing a company on behalf of shareholders

Back

Preview of the back of card 4

Card 5

Front

Occurs when costs per unit increase as a business expands

Back

Preview of the back of card 5
View more cards

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This resource covers many of the key terms used in GCSE and A level Business Studies. It can be used for revision, testing (yourself or others) or adapted for other uses.

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