Setting up a Business Unit 1

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  • Created on: 06-01-13 00:09
a business owned and run by two or more people (but less than 20)
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Private Limited Company
a business with shareholders that has limited liability
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Sole Trader
a business with unlimited liability owned and run by one person
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the person who takes the risk of starting a business
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roads, railways, airports, power, communications
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Retail Outlet
any place where something is sold to a consumer (e.g. shop, vending machine)
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Start-up Costs
the initial costs paid once, when a business is first set up
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permission to use a successful business format
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the buyer of the franchise
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the seller of the franchise
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a percentage of the franchisee's income taken as payment by the franchiser
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long-terms goals towards which a business can work
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Ethical Aims and Objectives
aiming to 'do the right thing'
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Mission Statement
a statement of the values and ambitions of a business that defines how it operates
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shorter-term targets that can be measured
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Sustainable Aims and Objectives
aiming to be environmentally friendly
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External Stakeholders
individuals, groups or other businesses that have a less direct interest in a business
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Internal Stakeholders
those with a direct interest in a business
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owners of shares in a business
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a person, group or organisation with an interest in a business
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Business Plan
a detailed description and forecast for a business, used to reduce risk
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Market Research
details found out about the business' chosen market
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Marketing Strategy
the ways in which the business intends to promote and sell its product
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the factor that makes the business or product a 'one-off'
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the responsibility of the owner for the debts of the business
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Limited Liability
when liability is limited to the amount a shareholder has invested
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the amount of products and services customers are willing to pay for
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the person who takes the risk of starting a business
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Gap in the Market
where there is demand, but no product to fill it
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those things that can be touched
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the surplus of income (revenue) over costs
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those things done to or for a customer
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Social Enterprises
businesses set up to provide a service to a community like a charity
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raw figures, statistics and opinions; once interpreted, these become information
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Desk Research
secondary research that collects data already published
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Field Research
Primary research that collects new data
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Market Reseach
finding out about a market; who will buy, what when and why
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the good or service produced for sale
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Product Range
the variety of products on offer from a business
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the income of a business from sales
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Above the line
directly paid for advertising
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Below the line
promotion other than direct advertising
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how the product gets to the customer or the place where it is sold
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buying and selling online
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the place where a product is sold and how the product gets to that place
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how a business tells customers that its product exists, trying to persuade them to buy it
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bank permission to withdraw more from an account than is deposited
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Owners' funds
the money that the owners already have
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Retained profit
profit kept by the business to help finance growth
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Venture capitalists
private investors willing to risk money on new businesses
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where costs = revenue and the business is making neither a profit nor a loss
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Fixed Costs
costs that do not vary with output
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a deficit when costs are greater than revenue
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a surplus of revenue over cost
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money received for a sale (price x number sold)
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Variable costs
costs that vary directly with output
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the day to day running costs of the business (also called overheads or operating profit)
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Gross profit
total revenue minus costs of sales
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Net profit
gross profit minus expenses (also called overheads or operating profit)
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the price for land or buildings
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Wages and Salaries
the price for labour
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Cash flow
money flowing into and out of a business
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Cash flow Crisis
when there is insufficient funds to pay immediate bills
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Cash flow forecast
a predication of future flows
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Cash flow statement
flows that took place in the past
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curriculum vitae: an applicant's record of their skills, experience and qualifications
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External recruitment
recruiting from outside the business
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Internal recruitement
recruiting from inside the business
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the process of selecting and employing staff
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when someone works harder because they want to
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acting against someone for a reason they cannot control
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Employment rights
the rights of the workers
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Minimum wage
the least that, by law, an employer can pay
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when a person's job is no longer needed
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Batch production
producing different groups of core product from similar inputs
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Job production
when just one of a product is produced, using skills
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when parts, components etc, only arrive as needed
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where a product does what the customer expects it to do
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After sales service
the part of the customer service that takes place after a sale is made
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Customer Service
looking after customers to attract and retain them
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Caveat emptor
let the buyer beware - a key part of consumer law that says customers have a responsibility to check the products they are buying
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Cooling off period
a time when customers can decide to back out of a credit deal
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the mark given by the British Standards Institute (BSI) to show a product has been tested to a certain standerd
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Other cards in this set

Card 2


a business with shareholders that has limited liability


Private Limited Company

Card 3


a business with unlimited liability owned and run by one person


Preview of the back of card 3

Card 4


the person who takes the risk of starting a business


Preview of the back of card 4

Card 5


roads, railways, airports, power, communications


Preview of the back of card 5
View more cards




A superb set of 83 flash cards containing most of the definitions required for the unit 1 exam.

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