Buss1

HideShow resource information
  • Created by: Emily
  • Created on: 17-03-14 23:29
Accountants
An accountant is a professional who works in the world of finance, they are able to offer financial advice to entrepreneurs
1 of 111
Added Value
Added value is the value of the finished output over and above the cost of achieving it
2 of 111
Advisers
A person with a specific area of expertise whose services may be required by a business for a short period of time
3 of 111
Bank Loan
A set amount of money provided to a business to be repaid, with interest, over a predetermined period of time
4 of 111
Bank Managers
A senior professional within a bank who can offer help and advice to entrepreneurs
5 of 111
Break-Even Analysis
A numerical technique used by a business to identify the number of units necessary to achieve an equilibrium where Total Costs = Total Revenue
6 of 111
Break-Even Chart
A visual representation of total costs & total revenues identifying the point where break even is achieved
7 of 111
Break-Even Output
The level of output at which the business is making neither a profit nor a loss, the point at which TC=TR
8 of 111
Budget
A target amount of money set by a business in a specific period of time
9 of 111
Business Ideas
The identification of a potential business opportunity by an entrepeneur
10 of 111
Business Objectives
A target that a business wants to achieve within a set period of time
11 of 111
Business Plans
A document that describes how an entrepreneur proposes to set up a new business, including the nature of the product or service, objectives, functional activities and financial forcasts
12 of 111
Cash Flow
The movement of cash into and out of a business over a period of time
13 of 111
Cash Flow Forecast
The process of estimating the size and timing of cash inflows & outflows within a business
14 of 111
Cash Inflows
The receipt of cash into a business
15 of 111
Cash Outflows
The transfer of cash from a business
16 of 111
Cash Sales
Sales made by a business when the customer makes payment immediately
17 of 111
Cash Purchases
Purchases made by a business where payment takes place immediately
18 of 111
Closing Balance
The closing balance on a cash flow is the amount of money/cash left at the end of a period
19 of 111
Competitive Advantage
A feature of a business that allows it to perform more successfully than others in the market
20 of 111
Consultants
Professionals who provide specialist help & advice to businesses
21 of 111
Contribution Per Unit
The amount of money each unit sold contributes towards fixed costs & once break-even has been achieve then contributes to profit
22 of 111
Copyright
A legal protection for anyone that has produced work in a range of areas i.e. literature, drama, music, art, recordings etc.
23 of 111
Credit Purchases
Purchases made by a business where they pay the supplier at a later date
24 of 111
Credit Sales
Sales made by a business where the customers payment is after the date of the sale
25 of 111
Demand
Shows the amount of goods or services that a consumer is willing & able to buy at a given price over a period of time. For a normal good as price falls demand will rise and vice versa
26 of 111
Dividend
A percentage of profit paid to share holder as a reward for their investment
27 of 111
Electronic Market
EM's exist when there is only a virtual location where buyers and sellers trade e.g. internet retailing
28 of 111
Employees
A person who works for a business in return for a wage or salary
29 of 111
Employers
A business who pays employees a wage or salary to work for them
30 of 111
Enterprise
The willingness to undertake new ventures & show initiative with a view to gaining rewards
31 of 111
Entrepeneur
A person who is willing to take risks in order to set up a business
32 of 111
Expenditure
Money spent by a business to pay for goods & services
33 of 111
Expenditure Budget
A target amount of money a business is permitted to spend in a given period of time
34 of 111
Failure
The inability of business to continue to operate
35 of 111
Fixed Costs
Costs to a business that stay the same regardless of output
36 of 111
Franchise
When one business (the franchisor) gives another business (the franchisee) permission to trade using the franchisors name & selling the franchisors goods or services
37 of 111
Full-Time Employee
A person who is contracted to work over 30 hours per week for a business
38 of 111
Government Agencies
Government funded organisations whose remit is to support entrepreneurs & enterprising behaviour
39 of 111
Government Grants
Financial support offered to entrepreneurs to ease the costs associated with start-ups
40 of 111
Government Incentives
Actions taken by the government to encourage firms to locate in certain areas, normally with low levels of economic activity
41 of 111
Government Support
Actions taken by the Government to encourage entrepreneurs & support enterprising behaviour
42 of 111
Income Budget
A target amount of money to be received from sales in a given period of time
43 of 111
Incorporated
A business with a separate legal identity from its owners
44 of 111
Infrastructure
The availability of external services which can be utilised by a business including: transport links, utilities, public services, telecommunications
45 of 111
Innovations
A new idea or invention which is launched onto the market normally with a view to financially gain
46 of 111
Inputs
The resources that are used in the production of a finished good or service
47 of 111
Interest Rates
The cost of borrowing or reward for saving money
48 of 111
Limited Liability
An investor's liability/financial commitment is limited to the total amount invested or promised in share capital
49 of 111
Liquidity
The ability of a business to meet day to day expenses & short term debts
50 of 111
Loan Capital
Money acquired by a business which must be repaid with interest e.g. bank loan or overdraft
51 of 111
Local Markets
When entrepreneurs focus on selling to a small geographical area
52 of 111
Loss
The deficit experienced by a business when costs exceed revenue
53 of 111
Margin of Safety
The difference between the actual number of units produced & the number required to break-even
54 of 111
Market Growth
The percentage increase in the size of the market i.e. by how much is the market growing in terms of value or volume
55 of 111
Market Niche
The identification or a previously unexploited gap in the market
56 of 111
Market Segmentation
The splitting of customers into categories in order to identify different types of consumer
57 of 111
Market Share
The proportion if total market sales that a particular firm has
58 of 111
Market Size
The total value or volume of sales in the market. Can be measured in money terms (£20 mil) or by the amount sold (1 mil cars)
59 of 111
National Markets
Involve selling to a wide geographical area
60 of 111
Net Monthly Cash Flow
The balance of a months total cash inflows in relation to the months total cash outflows
61 of 111
Not-for-profit Business
Businesses with a motive other than profit, this may be to provide a social benefit or device to society or support a cause
62 of 111
Opening Balance
The opening balance on a cash flow is the amount of money/cash left at the end of the previous period
63 of 111
Ordinary Share Capital
Investment given to a business by shareholders in return for a share of profit (a dividend) and a voting right. The dividend isn't fixed so doesn't have to be paid
64 of 111
Opportunity Cost
The cost of one course of action in terms of the next best alternative foregone
65 of 111
Outputs
The finished goods or services which are achieved by the transformation of inputs
66 of 111
Overdraft
The facility to borrow money, normally from a bank, in the short term
67 of 111
Part-time Employee
A person who is contracted to work less than 30 hours per week for a business
68 of 111
Partnership
When two or more people join together to set up a business as a partnership
69 of 111
Patent
A patent grants the holder, and individual or business, the sole right to use unique features of a new product or process
70 of 111
Permanent Employee
A person who is contracted to work for a business for a non-specified period of time
71 of 111
Personal Savings
When an entrepreneur invests their own money in a business
72 of 111
Physical Markets
Exist when there is an actual location where buyers and sellers met e.g. shop, trade fair
73 of 111
Price
The cost of a good or service to the customer
74 of 111
Primary Industry
Those at the start of the chain of production, they extract raw materials or natural resources of demand
75 of 111
Primary Market Research
Involves the collection of first hand data that did not exist before. Therefore = original data
76 of 111
Private Limited Company
An incorporated business that is owned by shareholders whom are family & friends of the entrepreneur(s)
77 of 111
Product Niche
The identification of a product that will meet currently unsatisfied needs of a customer
78 of 111
Profit
The surplus money made by a business when revenue exceeds costs
79 of 111
Profit Budget
A target amount of profit to be achieved by a business in a specific period of time
80 of 111
Public Limited Company
An incorporated business that is able to sell shares on the stock exchange
81 of 111
Qualitative Factors
Factors influencing start-up location based upon the personal desires & needs of the entrepeneur
82 of 111
Qualitative Research
The gathering of non-statistical information that gives a company in depth insight into reasons for human behaviour
83 of 111
Quantitative Factors
Factors influencing start-up location based upon measurable & financial incentives
84 of 111
Quantitative Research
The gathering of statistical data to inform the company about people's behaviour but doesn't identify the reasons
85 of 111
Quota Sample
The sample chosen reflects the characteristics of the market
86 of 111
Random Sample
Where each individual is chosen entirely by chance & has an equal chance of being selected for study
87 of 111
Sampling
Choosing a proportion of the whole population as representative of the market for market research purposes
88 of 111
Secondary Market Research
Research that has already been undertaken by another organisation & already exists
89 of 111
Secondary Industry
Those responsible for turning raw materials into partially finished or finished goods
90 of 111
Setting Budgets
The process of setting financial targets to be achieved within a given period of time
91 of 111
Shareholders
Investors who are part owners of a company
92 of 111
Small Business Advisers
A person with an area of specialism who can offer support & information to a new enterprise
93 of 111
Social Enterprise
A business whose motives are not financial gains but to provide a service of benefit to society
94 of 111
Sole Trader
An individual who owns and runs their own business
95 of 111
Start-Up Location
The physical place from which a business will operate
96 of 111
Stratified Sample
One selected from a specific subsection of the population
97 of 111
Success
Defined differently by different firms deepening on their objectives e.g. survival, profit, growth
98 of 111
Technology
The application of what has been learned through science
99 of 111
Temporary Employee
A person who is contracted to work for a business for a specified period of time e.g. 6 months or cover maternity leave
100 of 111
Tertiary Industry
Those responsible for providing a service e.g. retail, tourism
101 of 111
Total contribution
Sales Revenue - Total Variable Costs
102 of 111
Total Costs
Fixed Costs + Variable Costs
103 of 111
Total Revenue
The amount of money coming in to a business from the sales of a good or service. Selling price x Quantity Sold
104 of 111
Trademark
Protects a feature that distinguishes your business from others. It might include words, pictures, logos or a combination
105 of 111
Transformation
The process of changing inputs into outputs to meet customer needs
106 of 111
Unincorporated
A business and its owners have the same legal identity
107 of 111
Unlimited Liability
The owners of a business are responsible for the total amount of debt of the business
108 of 111
Variable Costs
Costs to a business that change in relation to output
109 of 111
Variables
Numerical factors that can change such as variable costs & selling price
110 of 111
Venture Capital
Investment from an established business person or business into a new business in return for a percentage equity in the new business
111 of 111

Other cards in this set

Card 2

Front

Added Value

Back

Added value is the value of the finished output over and above the cost of achieving it

Card 3

Front

Advisers

Back

Preview of the front of card 3

Card 4

Front

Bank Loan

Back

Preview of the front of card 4

Card 5

Front

Bank Managers

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Key Terms resources »