OCR Cambridge National I Enterprise and Marketing Level 1/2 (Business Studies Keywords/Concepts Flashcards)

  • Created by: Humayrah
  • Created on: 03-12-18 18:56
Is the responsibility for a business's losses
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Money that's invested or available to a business
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From of ownership which includes 2 or more people up to 20 owning the business with unlimited liability
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People who purchase a SHARE of the company (either privately through an LTD or on stock markets physically)
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Private limited company
Small and medium companies companies which has shares for sale privately
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Public limited company
Large companies who can raise capital through the public buying shares on the stock market (with limited liability) run by a board of directors through a decision from the shareholding public (in annual general meeting)
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A business that allows people to buy the image and branding of a certain business to set up their own version (limited liability) - a Franchisor owns the rights to the Franchise
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Finance raised through internet where people donate a sum of money
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Business Angel
A wealthy individual who gives money to a business in return for a percentage of the business
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External Environment
Anything outside the business which has a direct impact on it but can't be controlled by the company (e.g. new competitors, change in laws or regulation such as diff. VAT, Tax, National Insurances and business rates, or the economy)
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Laws regarding the way that a business is run, often restrictions on what the business can and can't do (e.g. trading hours, what can be sold, who to and employees)
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Money TAKEN from company PROFITS that's used by GOVERNMENT to run the COUNTRY
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National Insurance
Paid by companies and employees to PAY for the BENEFIT fund in UK (e.g. unemployment benefit, pensions)
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Value of tax added onto the price of every good and service in the UK
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Business rates
A tax that a business has to pay because they are operation out of a shop, factory, or an office building (a building that isn't lived in)
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What are the 5 business DEPARTMENTS? (HOMAF)
Human resources, Operations, Marketing, Administration/ICT, Finance
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(4) What are the consequences if a department doesn't do its job/ doesn't operate efficiently?
Conflict between departments, Jobs not done at all, or jobs done twice ( = a loss of money or lose business customers ) and Resources ( overspending possibility )
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Give (4) examples of the Admin/ICT job roles
1. Reception (first initial greeting of customers) 2. Security (Looking after staff/business) 3. Clerical work (paper work/recording of business transactions) 4. ICT (ensuring that business tech works well)
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The department in a business that monitors money coming in and out
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Money going OUT of business on CREDIT SALES to other COMPANIES. The business that they BUY FROM is a creditor
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Companies that owe money on credit sales to businesses are called debtors
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How able the business is to pay its debts
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When a business goes through the process of selling of assets as it can't pay off its debts
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Balance Sheet
Adds up to value of a business' assets and what it owes to calc the value of a business
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Trade union
A body that protects workers rights in a certain industry
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Aims vs Objectives
Aims (i.e. be environmentally friendly or expansion, make profit) and Objectives (make 10% more sales by next three months)
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(3) Importance of Aims
Helps everyone understand what they have to do in business, decisions can be made on what has to be done to achieve aims, gives focus and motivates employees
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(3) Importance of Objectives
Each department can be set to work towards overall aim, objectives can measure business success rate, objectives can be changed over time based on progress towards meeting obj.
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Ethically and socially responsible businesses
When they ensure that their decisions benefit around the world, e.g. donating to chai
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Aims broken up into measurable targets (like make a mil profit in a year)
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Business Plan
A written document that describes in detail how a business is going to operate and achieve goals
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What are examples of market segmentation?
Age, gender, occupation, income, lifestyle, geographic
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Benefits of market segmenatation
Ensures customer satisfaction (needs are met), potential to increase profits, increased customer retention, allows to target market, potential for increased market share
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Forms of primary research are..?
Observations, questionnaires, surveys, focus groups, consumer trials
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Forms of secondary research are..?
Internal data, books, newspapers, magazines, competitor data, gov. publications, purchased research material
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Customer feedback techniques
Online surveys, social media, customer comment cards, email survey, email contact forms
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Purpose of market research
To understand market, to broaden market, gain customer views, promote organisation, aid decision making, gain views of customers, inform product development
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Primary research advantages
First hand information, find out customer views in specific detail, ask customers different questions, ask up to date and specific q's
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Primary research disadvantages
Expensive, time taking, customers may lie/find you annoying
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Secondary research adv and disadv
adv) quicker than primary, more cost effective than primary research. disadv) could be outdated, maybe expensive? may not be able to find info you were looking for
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Focus group
A planned discussion between a group of selected people to find out info abt a particular topic
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Consumer trial
A temporary offering that should provide the market info by allowing free trials
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Examples of fixed costs
Rent, loan payments, paying staff, ads, insurance, utilities, electricity bills, salaries
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Salary vs Wage
Salary (fixed amt money at end of year, usually payed at end of each month and doesn't change with hours) and wage (amt of money earned depending on hours worked)
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Variable costs examples
Stock, packaging, raw materials
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Break even point formula
fixed costs / (selling price per unit - variable price per unit)
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Variable cost
cost that varies with level of OUTPUT
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Fixed costs
Costs to a business that doesn't change according to the level of sales
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Revenue minus cost. Money made from sales after all costs have been deducted
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Amt of units sold x by selling price. The amt of money a business makes from selling units.
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Point of sale advertising
When a business advertises near checkout
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Price discrimination
Changing the price of a product depending on time of year/day/flight, e.g. train times
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Price skimming
Settling a price high at start to build a customer base then lower to broaden market as amount of sales increase (e.g. PS4)
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Penetration pricing
Setting price really low at first then higher as its popular like a chocolate bar for instance
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Increase in price of goods and services over a set period of time. It's the PERCENTAGE of HOW MUCH PRICES have gone UP from START of period to the END on AVERAGE
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Retail price index
A way to measure INFLATION. CPI including mortgage repayments and the cost of housing
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(CPI) Consumer price index
A way to measure inflation. Compares the average cost of a 'basket of goods' from start of period to end of period
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Loan given to buy a house, repaid monthly and often biggest loan people take out
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When a prod. bought from overseas
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Selling to another country
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Balance of trade
The amt of imports bought compared to exports sold, if imports are higher than exports then more money is going out the country than coming in
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Other cards in this set

Card 2


Money that's invested or available to a business



Card 3


From of ownership which includes 2 or more people up to 20 owning the business with unlimited liability


Preview of the back of card 3

Card 4


People who purchase a SHARE of the company (either privately through an LTD or on stock markets physically)


Preview of the back of card 4

Card 5


Small and medium companies companies which has shares for sale privately


Preview of the back of card 5
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