Buss 1

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Adviser
An external contact of a business who provides support and advice, sometimes for free.
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Bank loan
A fixed amount loan from a bank which is generally used to finance long-term assets.
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Bank overdraft
Borrowings from a bank on a current account which are payable on demand.
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Break-even
The point at which the total sales of a business equal total costs - i.e. the business is making neither a profit nor a loss.
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Budget
A detailed plan of income and expenses expected over a certain period of time.
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Business angel
A particular type of investor, usually a successful entrepreneur, who is willing to invest in high-risk, high-growth firms at a very early age.
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Business plan
A detailed description of a new or existing business, including the companies strategy, aims and objectives, marketing and financial plan.
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Cash flow
The movements of cash into (inflows) and out of (outflows) a business.
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Cash flow forecast
A projection, usually by week or month, of the likely cash inflows and outflows in a business.
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Contribution
The difference between total sales and total variable costs.
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Costs
Amounts incurred by a business as a result of its trading operations.
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Demand
The amount of a product of service that customers are willing and able to pay at a given time.
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Demographic segmentation
Defining a market in terms of social-economic factors such as age, income, class etc.
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Elasticity of demand
The responsiveness of demand to a change in price or incomes.
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Enterprise
The process by which new businesses are formed in order to offer products and services in a market.
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Entrepreneur
An individual who sets up and runs a new business and takes on the risks associated with the business.
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Fixed costs
Costs that do not vary with the level of output.
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Franchisee
The person or company which operates a franchised business format under license from a franchisor.
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Franchisor
The owner of a business format (franchise) which is licensed out to other people or businesses (franchisees).
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Inputs
The resources (land, labour, capital, enterprise) that go into producing goods and services.
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Limited liability
Shareholders are only liable for the money they have invested - not for the overall debts and liabilities of their company.
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Margin of safety
The difference between the actual level of output and the break-even output.
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Market growth
The percentage growth in the size of the market, measured over a specific period.
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Market research
The process of planning, collecting, and analysing data relevant to help make marketing decisions.
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Market segmentation
The process dividing a market into smaller sections (segments) which contain customers with similar needs and wants.
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Market share
The share of the total market that is owned by a particular business, product or brand.
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Opportunity cost
The cost of a decision as measured by the benefits foregone of the next best alternative.
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Patent
The right to be the only user of producer of a specified product or process.
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Primary research
The market research that involves the collection of data that does not yet exist.
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Profit
The difference between total sales and total costs.
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Qualitative research
Market research concerned with collecting data on attitudes, opinions, beliefs, intentions etc.
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Quantitative research
Market research concerned with collecting data that can be quantified - e.g. sales statistics.
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Return
The rewards to enterprise - e.g. profit, satisfaction.
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Risk
The probability or chance that hoped-for outcomes will not occur.
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Sample
In market research, a sample is a subset of a population.
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Sole trader
A one-person business with unlimited liability for the debts of that business.
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Total costs
The total of variable and fixed costs in a business.
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Trade credit
Amounts owed to suppliers of a business - a source of finance.
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Trademark
A word, symbol, or phrase used to identify a particular company's product and differentiate it from other companies' products.
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Unlimited liability
Unlimited liability describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business.
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USP
Unique selling point - a feature of a product or service that makes it stand out compared with the competition.
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Variable costs
Costs that vary directly in proportion to output.
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Venture captial
Investment made by specialist funds to finance the launch, early development or expansion of a private company.
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Working capital
The amount of money that a business has available to conduct it's day-to-day activities.
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Copyright
Legal protection for artistic or creative works.
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A market
A market exists where buyers and sellers combine to exchange goods and services.
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Other cards in this set

Card 2

Front

A fixed amount loan from a bank which is generally used to finance long-term assets.

Back

Bank loan

Card 3

Front

Borrowings from a bank on a current account which are payable on demand.

Back

Preview of the back of card 3

Card 4

Front

The point at which the total sales of a business equal total costs - i.e. the business is making neither a profit nor a loss.

Back

Preview of the back of card 4

Card 5

Front

A detailed plan of income and expenses expected over a certain period of time.

Back

Preview of the back of card 5
View more cards

Comments

davidsalter

44 flash cards providing definitions of some of the main terms used in the first unit. Can be used to assess your learning or for joint revision.

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