Business Studies - KEY TERMS

Dani Whitrick
Flashcards by Dani Whitrick, updated more than 1 year ago
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Key terms for GCSE Business Studies
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Buffer Stock This is the MINIMUM amount of stock held by a business AT ALL TIMES
Cumulative Cash This is the BUILD UP of cash in a business' bank account
Adding Value IMPROVING a PRODUCT/SERVICE so that it is worth more than its bought-in cost
Dividends These are PAYMENTS to SHAREHOLDERS which are paid at the end of the year
Marketing Mix 4 Ps: PRICE, PRODUCT, PROMOTION, PLACE
Primary Research This is research that is BRAND NEW and has not been collected previously E.g. An interview or questionnaire
Secondary Research This type of research has ALREADY BEEN GATHERED PREVIOUSLY E.g. Web research or MINTEL reports
Stakeholder This is an individual/group that HAS AN INTEREST in the SUCCESS OF A BUSINESS or who is INVOLVED in it
Sales Forecasts These are PREDICTED FUTURE SALES of a product
Entrepreneur Someone with a BUSINESS IDEA
Social Entrepreneur Someone who sets up a business TO BENEFIT SOCIETY (money is NOT the first priority)
Product Something TANGIBLE (you can touch it)
Service Something INTANGIBLE (you can't touch it)
Sole Trader Someone who is the EXCLUSIVE OWNER of a business
Partnership Between 2 and 20 people (divide profits/shares)
Venture Capitalists People who want to INVEST MONEY into a business (E.g. Dragon's Den)
Insolvency The INABILITY TO REPAY DEBTS as they become due
Quantitative Data Factual information
Qualitative Data Information about opinions and views
Fixed costs These are costs which DO NOT CHANGE WHEN OUTPUT CHANGES E.g. water, rent, electricity, insurances, heat
Variable Costs These are costs which CHANGE WHEN OUTPUT CHANGES E.g. raw materials
Profit Revenue - total costs
Revenue Price of products x quantity sold
Patent LEGAL PROTECTION for the originator of a TECHNICAL BREAKTHROUGH
Cash Flow This is the FLOW OF CASH going INTO and OUT OF a business
Centralised Organisation (centralisation) An organisation in which MOST DECISIONS are MADE AT HEAD OFFICE
Decentralised Organisation (decentralisation) An organisation which ALLOWS STAFF TO MAKE DECISIONS at a local level
Primary Stakeholders People/groups SEEN BY THE BUSINESS to be FUNDAMENTAL TO ITS SUCCESS OR FAILURE E.g. staff/shareholders
Secondary Stakeholders People/groups who FEEL INVOLVED in a business' SUCCESS OR FAILURE, whether or not the management agrees E.g. pressure groups, local community, residents
Commodity A RAW MATERIAL which can be BOUGHT OR SOLD
Copyright This is LEGAL OWNERSHIP OF MATERIAL which prevents it from being copied E.g. music, books, films
Net Monthly Cash The month's cash inflow - the month's cash outflow
Liquidation This is the SELLING OF A FIRM'S ASSETS so that it can PAY OFF ITS DEBTS
Shareholder Someone that OWNS A SHARE in a business
Business Plan A FORMAL DOCUMENT which sets out a NEW BUSINESS IDEA and how it is planned to make it succeed
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