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  • Created by: Emily
  • Created on: 17-03-14 23:29
An accountant is a professional who works in the world of finance, they are able to offer financial advice to entrepreneurs
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Added Value
Added value is the value of the finished output over and above the cost of achieving it
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A person with a specific area of expertise whose services may be required by a business for a short period of time
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Bank Loan
A set amount of money provided to a business to be repaid, with interest, over a predetermined period of time
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Bank Managers
A senior professional within a bank who can offer help and advice to entrepreneurs
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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
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Break-Even Chart
A visual representation of total costs & total revenues identifying the point where break even is achieved
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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
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A target amount of money set by a business in a specific period of time
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Business Ideas
The identification of a potential business opportunity by an entrepeneur
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Business Objectives
A target that a business wants to achieve within a set period of time
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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
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Cash Flow
The movement of cash into and out of a business over a period of time
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Cash Flow Forecast
The process of estimating the size and timing of cash inflows & outflows within a business
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Cash Inflows
The receipt of cash into a business
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Cash Outflows
The transfer of cash from a business
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Cash Sales
Sales made by a business when the customer makes payment immediately
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Cash Purchases
Purchases made by a business where payment takes place immediately
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Closing Balance
The closing balance on a cash flow is the amount of money/cash left at the end of a period
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Competitive Advantage
A feature of a business that allows it to perform more successfully than others in the market
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Professionals who provide specialist help & advice to businesses
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Contribution Per Unit
The amount of money each unit sold contributes towards fixed costs & once break-even has been achieve then contributes to profit
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A legal protection for anyone that has produced work in a range of areas i.e. literature, drama, music, art, recordings etc.
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Credit Purchases
Purchases made by a business where they pay the supplier at a later date
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Credit Sales
Sales made by a business where the customers payment is after the date of the sale
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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
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A percentage of profit paid to share holder as a reward for their investment
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Electronic Market
EM's exist when there is only a virtual location where buyers and sellers trade e.g. internet retailing
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A person who works for a business in return for a wage or salary
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A business who pays employees a wage or salary to work for them
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The willingness to undertake new ventures & show initiative with a view to gaining rewards
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A person who is willing to take risks in order to set up a business
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Money spent by a business to pay for goods & services
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Expenditure Budget
A target amount of money a business is permitted to spend in a given period of time
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The inability of business to continue to operate
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Fixed Costs
Costs to a business that stay the same regardless of output
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When one business (the franchisor) gives another business (the franchisee) permission to trade using the franchisors name & selling the franchisors goods or services
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Full-Time Employee
A person who is contracted to work over 30 hours per week for a business
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Government Agencies
Government funded organisations whose remit is to support entrepreneurs & enterprising behaviour
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Government Grants
Financial support offered to entrepreneurs to ease the costs associated with start-ups
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Government Incentives
Actions taken by the government to encourage firms to locate in certain areas, normally with low levels of economic activity
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Government Support
Actions taken by the Government to encourage entrepreneurs & support enterprising behaviour
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Income Budget
A target amount of money to be received from sales in a given period of time
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A business with a separate legal identity from its owners
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The availability of external services which can be utilised by a business including: transport links, utilities, public services, telecommunications
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A new idea or invention which is launched onto the market normally with a view to financially gain
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The resources that are used in the production of a finished good or service
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Interest Rates
The cost of borrowing or reward for saving money
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Limited Liability
An investor's liability/financial commitment is limited to the total amount invested or promised in share capital
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The ability of a business to meet day to day expenses & short term debts
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Loan Capital
Money acquired by a business which must be repaid with interest e.g. bank loan or overdraft
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Local Markets
When entrepreneurs focus on selling to a small geographical area
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The deficit experienced by a business when costs exceed revenue
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Margin of Safety
The difference between the actual number of units produced & the number required to break-even
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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
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Market Niche
The identification or a previously unexploited gap in the market
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Market Segmentation
The splitting of customers into categories in order to identify different types of consumer
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Market Share
The proportion if total market sales that a particular firm has
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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)
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National Markets
Involve selling to a wide geographical area
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Net Monthly Cash Flow
The balance of a months total cash inflows in relation to the months total cash outflows
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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
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Opening Balance
The opening balance on a cash flow is the amount of money/cash left at the end of the previous period
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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
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Opportunity Cost
The cost of one course of action in terms of the next best alternative foregone
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The finished goods or services which are achieved by the transformation of inputs
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The facility to borrow money, normally from a bank, in the short term
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Part-time Employee
A person who is contracted to work less than 30 hours per week for a business
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When two or more people join together to set up a business as a partnership
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A patent grants the holder, and individual or business, the sole right to use unique features of a new product or process
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Permanent Employee
A person who is contracted to work for a business for a non-specified period of time
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Personal Savings
When an entrepreneur invests their own money in a business
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Physical Markets
Exist when there is an actual location where buyers and sellers met e.g. shop, trade fair
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The cost of a good or service to the customer
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Primary Industry
Those at the start of the chain of production, they extract raw materials or natural resources of demand
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Primary Market Research
Involves the collection of first hand data that did not exist before. Therefore = original data
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Private Limited Company
An incorporated business that is owned by shareholders whom are family & friends of the entrepreneur(s)
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Product Niche
The identification of a product that will meet currently unsatisfied needs of a customer
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The surplus money made by a business when revenue exceeds costs
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Profit Budget
A target amount of profit to be achieved by a business in a specific period of time
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Public Limited Company
An incorporated business that is able to sell shares on the stock exchange
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Qualitative Factors
Factors influencing start-up location based upon the personal desires & needs of the entrepeneur
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Qualitative Research
The gathering of non-statistical information that gives a company in depth insight into reasons for human behaviour
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Quantitative Factors
Factors influencing start-up location based upon measurable & financial incentives
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Quantitative Research
The gathering of statistical data to inform the company about people's behaviour but doesn't identify the reasons
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Quota Sample
The sample chosen reflects the characteristics of the market
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Random Sample
Where each individual is chosen entirely by chance & has an equal chance of being selected for study
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Choosing a proportion of the whole population as representative of the market for market research purposes
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Secondary Market Research
Research that has already been undertaken by another organisation & already exists
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Secondary Industry
Those responsible for turning raw materials into partially finished or finished goods
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Setting Budgets
The process of setting financial targets to be achieved within a given period of time
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Investors who are part owners of a company
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Small Business Advisers
A person with an area of specialism who can offer support & information to a new enterprise
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Social Enterprise
A business whose motives are not financial gains but to provide a service of benefit to society
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Sole Trader
An individual who owns and runs their own business
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Start-Up Location
The physical place from which a business will operate
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Stratified Sample
One selected from a specific subsection of the population
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Defined differently by different firms deepening on their objectives e.g. survival, profit, growth
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The application of what has been learned through science
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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
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Tertiary Industry
Those responsible for providing a service e.g. retail, tourism
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Total contribution
Sales Revenue - Total Variable Costs
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Total Costs
Fixed Costs + Variable Costs
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Total Revenue
The amount of money coming in to a business from the sales of a good or service. Selling price x Quantity Sold
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Protects a feature that distinguishes your business from others. It might include words, pictures, logos or a combination
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The process of changing inputs into outputs to meet customer needs
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A business and its owners have the same legal identity
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Unlimited Liability
The owners of a business are responsible for the total amount of debt of the business
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Variable Costs
Costs to a business that change in relation to output
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Numerical factors that can change such as variable costs & selling price
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Venture Capital
Investment from an established business person or business into a new business in return for a percentage equity in the new business
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Other cards in this set

Card 2


Added Value


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

Card 3




Preview of the front of card 3

Card 4


Bank Loan


Preview of the front of card 4

Card 5


Bank Managers


Preview of the front of card 5
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