Business Studies

Flashcards by lucy.merrell, updated more than 1 year ago
Created by lucy.merrell over 6 years ago



Resource summary

Question Answer
Added value the difference bewteen what the business pays it's suppliers and the price that it is avaliable to charge for the product/service, the increased worth that a business created for a product
Blue skies thinking a techniques of creative thinking where participunts are encouraged to think of as many ideas or a problem
boston matrix a model which analyses a product protfolio according to the growth rate of the whole maket of a product within that market; a product is placed in one of four categories - star, cash cows, problem child or dog.
brand a named product which customers see as being different from other products and which they can associate or identify with.
brand image the idea/impression/vision that customers have in their minds about the brand.
calculated risk the probability of a negative event occuring.
companies business whose shareholders have limited liability.
competivite advantage An advantage that a business has that enables it to perform better than it's rivals in the market and which is both distinctive and defeensible.
consumer The person who ultimatley uses (or consumes) a product.
copyright legal ownership of material such as books, music, films which prevents these being copied by others.
coroporation tax a tax on the profits of limited companies.
creative thinking coming up with new and unique ideas
customer Any person or organisation which buys or is supplied with a product by a business
customer loyalty the willingness of uyers to make repeated purchases of a product or a form a business.
customer needs The wants and desires of buyers of a product or the customers of a business
deliberate creativity the intentional creation of new ideas through recongnised and accepted technique
downsides the disadvantages of a course of action, including what can go wrong.
driven keen and motivated
enterprize A wilingmess by an individual or a business to take risks, show initiative and undertake new ventures.
entrepeeneur a person who runs and owns their own business and takes risks.
extension strateguy a method used to increase the life of a product and prevent it falling into decline.
financial objectives aims expressed in money terms such as making a profit, earning income or building wealth.
focus group In market research, a group of people brought together to answer questions abd discuss a product, band or issue.
franchise the right given by one business to another to sell goods or services using it's name.
franchisee a business that agrees to manacture, distribute or provide a branded product under license by a franchisor
franchisor the business that gives franchisees the right to sell it's product, in return for a fixed sum of money or a royalty product
gap in the market an orignial idea which fills a gap in the market
goods something you can touch
HM revenue & customs the government authorites in the uk responsible for collecting tax.
income tax a tax on the value of income earned by workers; this inlcudes sole traders who have to pay income tax on their net earnings.
innovation the process of transforming invetions into products that can be sold to customers.
invention the discovery of new processesses and potential new products typically after a period of research.
lateral thinking thinking diffrently to try and find new and unexpected ideas.
limited liability when shareholders of a company are not personally liable for the debts of the company ; the most they can loose is the value of their investment in the shares of the company.
Market map a diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality. Also called precerptual map or positioning map
markets where buyers and sellers meet to exchange goods and services.
marketing the management process that is responsible for anticipating , identifying and satisfying customer needs profitably.
marketing mix the combination of factors which help the business to take into account customer needs when selling a product also known as the 4p's price, product, place and promotion.
market research You need to find out customers wants and needs through primary and secoundary research.
market segment part of a market that contains a group of buyers with similar buying habits, such as age or income.
mind map a diagram that shows new ideas or anything you want it too,
national insurance contributions a tax on the earning of workers which are paid by the employers on the wages of their workers; employees and sole traders have to pay national insurance contributions on their earnings.
non-financial objectives goals for a business which aren't related to money but to personal satisfaction
patent right of ownership of an invention or process when it is registerd with the government.
sole trader the only owner of a business which has unlimited liability.
unlimited liability a legal obligation on the owner of a business to settle (pay of) debts of the business. In law, there is no distinction between what the business owes and owns and what the business owner owes and owns.
value added tax a tax on the value of sales; it is paid by business to government.
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