Flashcards
Business Key Terms Flash Cards
Cards in this deck (23)
- 1CostsAmounts incurred by a business as a result of its trading operations
- 2DemandThe amount of a product or service that customers are willing and able to pay at a given time
- 3MarketAny place (e.g. physical, electronic) where buyers and sellers come together with a view to exchanging transactions
- 4Market GrowthThe percentage growth in the size of the market, measured over a specific period
- 5InputsThe resources (land, labour, capital, enterprise) that go into producing goods and services
- 6Cash FlowThe movements of cash into (“inflows”) and out of (“outflows”) a business
- 7EntrepreneurAn individual who sets up and runs a new business and takes on the risks associated with the business
- 8LocationThe pace (or places) from which a firm does business. Can be both a physical location and also virtual.
- 9Limited LiabilityShareholders are only liable for the money they have invested - not for the overall debts and liabilities of their company
- 10Unlimited LiabilityUnlimited liability describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business
- 11TrademarkA word, symbol, or phrase used to identify a particular company’s product and differentiate it from other companies’ products
- 12Working CapitalThe amount of money that a business has available to conduct its day-to-day activities
- 13BudgetA detailed plan of income and expenses expected over a certain period of time
- 14EnterpriseThe process by which new businesses are formed in order to offer products and services in a market
- 15Fixed CostCosts that do not vary with the level of output – e.g. rent, salaries)Franchisee The person or company which operates a franchised business format - under licence from a franchisor
- 16Opportunity CostThe cost of a decision as measured by the benefits foregone of the next best alternative
- 17RevenueThe income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.
- 18Sole TraderA one-person business with unlimited liability for the debts of that business
- 19PartnershipA legal form of business operation between two or more individuals who share management and profits
- 20Public Limited CompanyIt is a limited liability company whose shares may be freely sold and traded to the public, with a minimum share capital of £50,000 and usually with the letters PLC after its name.
- 21Private Limited CompanyA private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.
- 22ProfitThe difference between total sales and total costs
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