Definitions

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  • Created by: hannahthx
  • Created on: 02-02-17 23:00
Adding Value
The process by which a business increases the worth of the resources included in production so that customers perceive the product to be worth more than the cost of the inputs
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Adviser
An external contact of the business which provides support and advise, sometimes for free
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Bank loan
A fixed amount loan from a bank which is usually 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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Breakeven point
The point by which the total sales of the business equal the total costs - ie. the business is making neither a loss or a profit
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Budget
A detailed plan of income 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 company's strategy, aims and objectives, and marketing and financial plan
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Business objective
A stated goal or target of a business
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Cash flow
The movement of cash into "inflow" 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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Contribution per unit
A key figure for break-even analysis: the difference between selling price per unit and variable cost per unit
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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 or service that a customer is willing and able to pay at a given time
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Demographic
Defining a market in terms of socio-economic factors such as segmentation of 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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Electronic Market
A market in which buyers and sellers are brought together using digital means of communication (eg. online) in order to exchange information (e.g. prices) and conduct transactions.
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Enterprise
The process by which new businesses are formed in order to offer products and services into 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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Expenditure budget
The budget which sets out expected costs to be incurred by a firm, usually split into various categories (eg. marketing, production, administration)
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Fixed costs
Costs that do not vary with output (eg. rent)
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Franchisee
The person or company which operates a franchised business format - under licence from a franchisor
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Franchisor
The owner of a business format (franchise) which is licensed out to othr people or businesses (franchisees)
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Full-time employee
An employee who works more than 30 hours per week
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Income budget
The budget which sets out estimates for the likely demand for and the value of the firms sales
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Inputs
The resources (land, labour, capital, enterprise) that go into producing 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 the company
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Location
The place from which a firm does business. Can be both physical and virtual)
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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
Any place (physical, electronic) where buyers and sellers come together with the intention of exchanging transactions
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Market Growth
The percentage growth in the size of the market, over a given period of time
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Market Research
The process of planning, collecting and analysing relevant data to help make marketing decisions
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Market Segmentation
The process of dividing a market into smaller sections, 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 business. (%) The firm with the largest market share is the market leader.
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Market Size
The total value or quantity of demand of a specific market over a specific period of time. Can be measured in value terms (e.g. sales) or in terms of quantities (e.g units) bought or sold.
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Niche market
A smaller part of a larger market in which customers have more specific needs or wants.
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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 or producer of a certain product or process.
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Permanent employee
An employee who is employed on a formal employment contract and remains with the firm for an open-ended period until the contract is ended. Compare with a temporary employee (“temp”), who is employed for a shorter, time-limited period.
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Primary research
The market research which 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 based on opinions, attitudes, beliefs, intentions etc.
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Quantitative research
Market research concerned with collecting data that can be quantified, e.g sales.
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Return
The rewards to enterprise, e.g profits, satisfaction
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Revenue
The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.
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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. Sampling is the process of taking and analysing a research sample.
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Share capital
The finance invested in a business (limited company) by the shareholders - part of the equity capital of a firm.
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Social enterprise
A business that has other objectives than making profit. Part of a group of organisations in the "not for profit" sector.
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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 fixed and variable costs in a business.
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Trade credits
Amounts owed to suppliers of a business - a source of finance
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Trademark
A word, phrase or symbol used to identify a particular company's product and differentiate it from other company's 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 capital
Investment funds made by specialist funds to finance the launch, early development or expansion of a company
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Working capital
The amount of money that a business has available to conduct its day-to-day activities
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Other cards in this set

Card 2

Front

An external contact of the business which provides support and advise, sometimes for free

Back

Adviser

Card 3

Front

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

Back

Preview of the back of card 3

Card 4

Front

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

Back

Preview of the back of card 4

Card 5

Front

The point by which the total sales of the business equal the total costs - ie. the business is making neither a loss or a profit

Back

Preview of the back of card 5
View more cards

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O5c4r

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This is great thanks do you have any or all of ur notes that u could post as well???

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