GCSE - Small Business

James Dodd
Flashcards by James Dodd, updated more than 1 year ago
James Dodd
Created by James Dodd about 5 years ago
113
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GCSE Edexcel Business and Economics Flashcards on GCSE - Small Business, created by James Dodd on 02/26/2016.

Resource summary

Question Answer
Primary research When a firm carries out first-hand research by field work, e.g. a questionnaire about customer perceptions of its products
Qualitative research In depth research using depth interviews, used to find out customers' behaviour and attitudes
Quantitative research Research involving large quantities of data, which allows statisical analysis of the results
Secondary research Desk research; research that has been previously carried out or published for another body or purpose
Demand curve The downward sloping line drawn to show how falling prices lead to rising sales (the 'curve' may be a straight line)
Effective demand Demand backed by the ability to pay
Repeat purchase Customer loyalty reflected in regualr purchasing
Market map Grid that measures two different aspects of the brands within a market (e.g. young/old compared with luxury/economy)
Market research Finding out customer opinions and actions, usually by interviews and by gathering information about sales
Innovative A new perhaps original, product or process
Unethical An action or decision that is wrong from a moral standpoint
Market segments Sections of a market focused upon specific types of customer, such as children
Market share One brand's sales as a percentage of all the sales in the market
Adding value Creating something of a higher value to a customer than its bought-in costs
Unique Selling Point (USP) A feature of a product or service that is not shared by any competitior
Entrepreneur Someone who takes on the risk of starting up a new enterprise
Royalties Paying a percentage of the sales revenue generated by a business or product
Copyright Protection for a creator against his/her work being copied
Innovation Putting a new idea into practice
Invention Showing how an original idea can work in theory
Patent Registering a new way of producing something, to establish sole rights to its use
Trademark Registering a logo, name, brand or slogan so that other businesses can not imitate you
Profit Revenue minus costs. This is the surplus that can be used to reward shareholders or to invest in the expansion of the business
Revenue The value of sales (price x quantity sold). This does not allow for any costs
Sales forecasts Estimates of the future level of sales to be achieved by a new or exsisting product
Fixed costs Costs that do not change when sales/output change
Total costs All the costs of making a specific level of sales (i.e. fixed costs plus total variable costs)
Variable costs Costs that change in direct proportion to changes in sales/output
Business plan A formal document setting out a new business idea and how it is planned to make it succeed
Cash The money the firm holds in notes and coins and in its bank account
Cash flow The movement of money into and out of the fimr's bank account
Cash flow forecasting Prediccting the future flows of cash into and out of the firm's bank account
Cumulative cash The build-up of cash in a firm's bank account
Insolvency The inability to repay debts as they become due
Negative cash flow When cash out is greater than cash in
Net monthly cash The month's cash inflow minus the month's cash outflow
Dividends Payments to shareholders from the company's yearly profits. The directors of the company decide how large a dividend payment to make; in a year they can decide on zero
Liquidation Selling off a firm's assets in order to raise cash to pay off the firm's debts
Share captial Raising finance by selling part ownership in the business. Shareholders have the right to question the directors and to receive part of the yearly profits
Venture capital A combination of share capital and loan capital, provided by a bank that is willing to take a chance on the success of a small to medium-sized business
Mission Something that a person passionately wants to achieve
Patent Legal protection for the originator of a technical breakthrough
Limited liability Where responsibility for paying the debts of the business is limited to the business, and cannot be passed on to the owners (the shareholders)
Vision A clear view of what the business should be aiming for (e.g. bringing millions of people together)
Word of mouth People speaking to each other about a topic or a business
Customer focus Keeping your staff thinking about customers' needs and wants
Target audience The part of the market your product is aimed at (e.g. women aged 15-24)
Bankrupt When an individual is unable to pay his/her debts, even after all personal assets have been sold for cash
Private Limited Company (LTD) A small private business where shareholders enjoy limited liability but shares can only be sold to invited individuals
Sole Trader A business run by one person; that person has unlimited liability for any business debts
Unlimited liability Treating the business and the individual owner as inseparable, therefore making the individual responsible for all the debts of a fialed business
Corporation tax Tax paid as a percentage of a company's profit
Discrimination Treating some types of people worse than others for reasons of prejudice. This may include choosing one person other another for a job based upon race, sex or age.
Income tax Tax paid as a percentage of a person's wage/salary
Legal entity A person or company that is treated by the law as having its own independent rights and responsibilities
National Insurance A form of tax that is paid by employers and employees as a contribution towards welfare payments such as unemployment pay. Employers pay around 13 per cent of the employees salary
Customer satisfaction The degree to which buyers rate the quality of the service they have received
Repeat purchase Buyers returning regularly to buy from the same supplier
Supply chain The links in the chain from the start to the end of the supply process. For a bakery that might be: wheat from farm - ground to flour - delivered to baker - baked into bread - sliced and wrapped - delivered to shops
Curriculum Vitae (CV) The story of life (i.e. a summary of a person's qualifications, acheivements and interests)
Reference One brand's sales as a percentage of all the sales in the market
Induction Intial training to make newcomers feel comfortable in their new job
Off-the-job Training that takes place away from the job (e.g. at college or at a company's training centre)
On-the-job Training that takes place while working at the job (e.g. till training at a supermarket)
Absenteeism The percentage of the workforce that is absent on the average day. The national average is about 3 per cent, but in some organisations it is highas 10 per cent
Labour turnover The percentage of the workforce that leaves each year and has to be replaced
Consumer spending The total spent by all shoppers throughout the country
Exports Goods produced in one country but sold overseas (e.g. a british-made Mini sold in France)
Recession A downturn in sales and output throughout the economy, often leading to rising unemployment
Commodity A product in which all supplies are the same, such as a pound of sugar. By contrast, types of jam have different flavours and different brand names
Market Where buyers and sellers come together; it could be in a particular street, or at an internet location (such as eBay)
Monopoly Where sales in the market are dominated by a single supplier
Wholesale The middleman between and retailers; retailers can buy at discounts when they buy wholesale, and may pass that discounts on to the public
Economic Growth The rate of rise in total output per year within an economy. This rate will determine how wealthy the country becomes in the future
European Union (EU) The group of countries that trade freely with one another and have agreements on many areas of social and economic policy
Foreign exchange markets The places where currencies are bought and sold. The city of London is a major centre for the massive daily trade in foreign exchange
Bank of England The state-owned bank that lends to - and regulates - the high street banks such as Barclays and Lloyds TSB
Bank rate The interest rate set by the Bank of England, from which the high street banks decide the rates they will charge
Chancellor of the Exchequer The government minister responsible for decisions about the economy. The second most poweful politician in the country, after the Prime Minister
Booming An economy that is growing much faster than it usually does. The term 'boom' implies that it probably will not last (i.e. that the economy is heading for a bit of an explosion)
Forecast A prediction of the future based on evidence (e.g. forecasting what UK interest rates will be in six months' time)
Primary Stakeholders People or groups seen by the business to be fundamental to the organisation's success or failure
Secondary Stakeholders People or groups who feel involved in the organisation's success or failure, whether or not management agrees
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