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

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davidsalter

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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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