GCSE Business Studies Unit 1

Helen Rennie
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Flashcards on GCSE Business Studies Unit 1, created by Helen Rennie on 03/16/2015.

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Helen Rennie
Created by Helen Rennie over 4 years ago
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Question Answer
Primary Research (Field) collecting information that did not exist before. This is first-hand contact with customers/suppliers etc.
Secondary Research (Desk) is the process of gathering secondary data, which is information that already exists.
Qualitative data information about opinions, judgments and attitudes. Is is not as easily analysed.
Quantitative data that can be expressed as numbers and can easily be statistically analysed.
Market Segments A group of buyers with similar characteristics and buying habits. e.g Age and gender.
Market Map This is a diagram that allows a business to position and compare products in a market, and identify opportunities where customers needs are not being met.
'Gap in the Market' Where customer needs are not being met
brand A brand is a named product that customers see as being different from other products, and that they can associate or identify with.
USP Unique selling point (this adds value to a product/service)
Differentiate Making a product or service different in some way from their competition to stand out and reach customers.
added value increasing the worth that a business creates for a product (the difference between what the business pays a supplier and the price they sell it at).
Franchise the right given by one business to other businesses to sell goods or services using its name.
Franchisor The business that gives franchisees the right to sell its products of service.
Franchisee a business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor.
Entrepreneur A person who owns and runs their own business and takes risks.
deliberate creativity the intentional creation of new ideas through recognised and accepted techniques i.e. creating a list or mind mapping.
Blue skies thinking coming up with as many ideas as possible to solve a problem.
Lateral thinking thinking differently to try and find new and unexpected ideas (outside the box). e.g. De Bonos 6 thinking hats
Patents right of ownership of an invention, design or process when it is registered with the government.
Copyright legal ownership of material such as books, music and films which prevent these being copied by others.
trademarks the logo, symbol, sign or other features of a product or business that cannot be copied by others.
Calculated risk putting a numerical value or probability on a risk and the likelihood of it coming true.
Name 4 qualities of an entrepreneur planning, initiative, taking risks, determination, making decisions, persuasion, leadership, luck
Sales Revenue (turnover) the amount of income received from selling goods or services PRICE X QUANTITY = TOTAL REVENUE
FIXED COSTS do not vary with the output produced by the business
VARIABLE COSTS change directly with the number of products made
TOTAL COSTS FIXED COSTS + VARIABLE COSTS =
PROFIT/ LOSS TOTAL REVENUE - TOTAL COSTS
PROFIT when revenue is greater than a businesses total costs.
Loss when a businesses costs are greater than its total revenue
Cash flow forecast a document showing the predicted flow of cash coming into and out of a business over a period of time.
Inflows or Receipts money coming into the business e.g. loan, personal savings and sales
Outflows or payments money flowing out of the businesses e.g wages, raw materials, interest or bills.
Net Cash Flow RECEIPTS - PAYMENTS or TOTAL INFLOWS - TOTAL OUTFLOWS
OPENING BALANCE the amount of money in a business at the start of the month.
CLOSING BALANCE the amount of money in a business at the end of the month NET CASH FLOW + OPENING BALANCE
CUMULATIVE CASH FLOW the sum of money that flows into a business over time.
Insolvent without sufficient funds or cash within the business
Business Plan a plan for the development of a business, giving forecasts of items such as sales, costs and cash flow.
source of finance a means for a business to get capital to start up a business (long or short!)
Shareholder A person who owns a percentage of a business. they are entitled to share the profits.
collateral (security) when borrowing money, the lender will be given some collateral against the loan. i.e property or interest.
3 steps to be customer focused are... 1) identify needs 2) anticipate needs 3) meet customer needs
The marketing mix to ensure successful marketing a business must get the right mix of the following things : PRICE, PRODUCT, PLACE, PROMOTION
LIMITED LIABILITY the owner and the business are separate legal entities (Ltd and PLC)
UNLIMITED LIABILTY the owner is legally responsible for any debts of the business. (soletrader)
4 main differences between sole traders and Ltds 1) RISK 2) CONTROL 3) PROFITS 4)PRIVACY
CORPORATION TAX a tax paid by limited companies on profits of the company.
INCOME TAX a tax on the income earned by workers and sole traders
VAT value added tax on the value of sales of a business. Businesses that sell more than a certain amount will register to pay VAT
National Insurance Contributions a tax on earnings of workers and sole traders linked to state benefits.
repeat purchase when customers keep returning back to a business to buy a product or service.
product trial a customer tries a product or service for the first time and if they like it this could lead to repeat purchase.
customer loyalty a customer would continue to repeat purchase your brand or product over competition.
SUPPLY the amount that sellers are willing and able to sell at any given price
DEMAND the amount that buyers are willing and able to purchase at a given price.
A Market A place where buyers and sellers meet to exchange products and services
COMMODITY MARKETS markets for raw materials, such as oil, steel and wheat, used for the production of other goods.
Goods Markets (normal markets) markets for everyday products, such as clothes and food.
Costs The money going out of a business. It is what a business has to pay for e.g raw materials, bills, labour.
Price this is the amount of money or value of money that a businesses places on a product or service they sell. e.g. a hair cut is priced at £20
EXCHANGE RATES is the price of buying foreign currency.
The business cycle the fluctuations in the level of economic activity over time.
Stakeholders an individual or group of individuals that has an interest and is affected by the activities of a business.