Setting up a Business Unit 1

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  • Created by: Lydia
  • Created on: 06-01-13 00:09
Partnership
a business owned and run by two or more people (but less than 20)
1 of 83
Private Limited Company
a business with shareholders that has limited liability
2 of 83
Sole Trader
a business with unlimited liability owned and run by one person
3 of 83
Entrepreneur
the person who takes the risk of starting a business
4 of 83
Infrastructure
roads, railways, airports, power, communications
5 of 83
Retail Outlet
any place where something is sold to a consumer (e.g. shop, vending machine)
6 of 83
Start-up Costs
the initial costs paid once, when a business is first set up
7 of 83
Franchise
permission to use a successful business format
8 of 83
Franchisee
the buyer of the franchise
9 of 83
Franchiser
the seller of the franchise
10 of 83
Royalty
a percentage of the franchisee's income taken as payment by the franchiser
11 of 83
Aims
long-terms goals towards which a business can work
12 of 83
Ethical Aims and Objectives
aiming to 'do the right thing'
13 of 83
Mission Statement
a statement of the values and ambitions of a business that defines how it operates
14 of 83
Objectives
shorter-term targets that can be measured
15 of 83
Sustainable Aims and Objectives
aiming to be environmentally friendly
16 of 83
External Stakeholders
individuals, groups or other businesses that have a less direct interest in a business
17 of 83
Internal Stakeholders
those with a direct interest in a business
18 of 83
Shareholders
owners of shares in a business
19 of 83
Stakeholder
a person, group or organisation with an interest in a business
20 of 83
Business Plan
a detailed description and forecast for a business, used to reduce risk
21 of 83
Market Research
details found out about the business' chosen market
22 of 83
Marketing Strategy
the ways in which the business intends to promote and sell its product
23 of 83
USP
the factor that makes the business or product a 'one-off'
24 of 83
Liability
the responsibility of the owner for the debts of the business
25 of 83
Limited Liability
when liability is limited to the amount a shareholder has invested
26 of 83
Demand
the amount of products and services customers are willing to pay for
27 of 83
Entrepreneurs
the person who takes the risk of starting a business
28 of 83
Gap in the Market
where there is demand, but no product to fill it
29 of 83
Goods
those things that can be touched
30 of 83
Profit
the surplus of income (revenue) over costs
31 of 83
Services
those things done to or for a customer
32 of 83
Social Enterprises
businesses set up to provide a service to a community like a charity
33 of 83
Data
raw figures, statistics and opinions; once interpreted, these become information
34 of 83
Desk Research
secondary research that collects data already published
35 of 83
Field Research
Primary research that collects new data
36 of 83
Market Reseach
finding out about a market; who will buy, what when and why
37 of 83
Product
the good or service produced for sale
38 of 83
Product Range
the variety of products on offer from a business
39 of 83
Revenue
the income of a business from sales
40 of 83
Above the line
directly paid for advertising
41 of 83
Below the line
promotion other than direct advertising
42 of 83
Distribution
how the product gets to the customer or the place where it is sold
43 of 83
E-Commerce
buying and selling online
44 of 83
Place
the place where a product is sold and how the product gets to that place
45 of 83
Promotion
how a business tells customers that its product exists, trying to persuade them to buy it
46 of 83
Overdraft
bank permission to withdraw more from an account than is deposited
47 of 83
Owners' funds
the money that the owners already have
48 of 83
Retained profit
profit kept by the business to help finance growth
49 of 83
Venture capitalists
private investors willing to risk money on new businesses
50 of 83
Breakeven
where costs = revenue and the business is making neither a profit nor a loss
51 of 83
Fixed Costs
costs that do not vary with output
52 of 83
Loss
a deficit when costs are greater than revenue
53 of 83
Profit
a surplus of revenue over cost
54 of 83
Revenue
money received for a sale (price x number sold)
55 of 83
Variable costs
costs that vary directly with output
56 of 83
Expenses
the day to day running costs of the business (also called overheads or operating profit)
57 of 83
Gross profit
total revenue minus costs of sales
58 of 83
Net profit
gross profit minus expenses (also called overheads or operating profit)
59 of 83
Rent
the price for land or buildings
60 of 83
Wages and Salaries
the price for labour
61 of 83
Cash flow
money flowing into and out of a business
62 of 83
Cash flow Crisis
when there is insufficient funds to pay immediate bills
63 of 83
Cash flow forecast
a predication of future flows
64 of 83
Cash flow statement
flows that took place in the past
65 of 83
CV
curriculum vitae: an applicant's record of their skills, experience and qualifications
66 of 83
External recruitment
recruiting from outside the business
67 of 83
Internal recruitement
recruiting from inside the business
68 of 83
Recruitment
the process of selecting and employing staff
69 of 83
Motivaton
when someone works harder because they want to
70 of 83
Discrimination
acting against someone for a reason they cannot control
71 of 83
Employment rights
the rights of the workers
72 of 83
Minimum wage
the least that, by law, an employer can pay
73 of 83
Redundancy
when a person's job is no longer needed
74 of 83
Batch production
producing different groups of core product from similar inputs
75 of 83
Job production
when just one of a product is produced, using skills
76 of 83
Just-in-time
when parts, components etc, only arrive as needed
77 of 83
Quality
where a product does what the customer expects it to do
78 of 83
After sales service
the part of the customer service that takes place after a sale is made
79 of 83
Customer Service
looking after customers to attract and retain them
80 of 83
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
81 of 83
Cooling off period
a time when customers can decide to back out of a credit deal
82 of 83
Kitemark
the mark given by the British Standards Institute (BSI) to show a product has been tested to a certain standerd
83 of 83

Other cards in this set

Card 2

Front

a business with shareholders that has limited liability

Back

Private Limited Company

Card 3

Front

a business with unlimited liability owned and run by one person

Back

Preview of the back of card 3

Card 4

Front

the person who takes the risk of starting a business

Back

Preview of the back of card 4

Card 5

Front

roads, railways, airports, power, communications

Back

Preview of the back of card 5
View more cards

Comments

davidsalter

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

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