5368241
Description
Flashcards by Aidan Clowes, updated more than 1 year ago
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Created by Aidan Clowes
almost 8 years ago
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| Question | Answer |
| Adding Value | The process of a business increasing the worth of a product |
| Adviser | An external contact of a business that provides support and advice, sometimes for free |
| Bank Loan | A fixed amount loan from a bank which is generally used to finance long-term assets |
| Bank Overdraft | Borrowings from a bank on a current account which are payable on demand |
| Breakeven Output (Point) | The point at which the total sales of a business equal total costs -i.e. the business is making neither profit nor loss |
| Budget | A detailed plan of expenses over a certain period of time |
| Business Angel | A particular type of investor, usually a successful entrepreneur, who is willing to invest in high-risk, high-growth firms at a very early stage |
| Business Plan | A detailed description of a new or existing business, including the company's strategy, aims and objectives, marketing and financial plan |
| Business Objective | A stated goal or target of a business |
| Cash Flow | The movements of cash into and out of a business |
| Cash Flow Forecast (CFF) | A projection, usually by week or month, of likely cash inflows and outflows in a business |
| Contribution | The difference between Total Sales and Total Variable Costs |
| Contribution Per Unit | A key number for break-even analysis: The difference between selling Price Per Unit and Variable Costs Per Unit |
| Costs | Amounts incurred by a business as a result of its trading operations |
| Demand | The amount of a product or service that customers are willing and able to pay at a given time |
| Demographic | Defining a market in terms of social-economic factors such as segmentation age, income, class etc. |
| Price Elasticity of Demand | The responsiveness of demand to a change in price or income |
| Electronic Market | A market in which buyers and sellers are bought together using digital means of communication (e.g. online) in order to exchange information (e.g. prices) and conduct transactions. Compare with physical markets where buyers and sellers meet face to face |
| Enterprise | The process by which new businesses are formed in order to offer products and services in a market |
| Entrepreneur | An individual who sets up and runs a new business and takes on the risks associated with the business |
| Expenditure Budget | The budget which sets out he expected costs to be incurred by the firm, usually split into various categories (e.g. production, marketing, administration) |
| Fixed Costs | Costs 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 the licence of a franchisor |
| Franchisor | The owner of a business format (franchise) which is licensed out to other people or businesses (franchisees) |
| Full-Time Employee | An employee who works more than 30 hours a week in a business |
| Part-Time Employee | An employee who works less than 30 hours a week in a business |
| Income Budget | The budget which sets out estimates of the likely demand for and value of the firms sales |
| Inputs | The resources (land, labour, capital, enterprise) that go into producing good and services |
| Limited Liability | Shareholders are only liable for the money that they have invested - not for the overall debts and liabilities of their company |
| Location | The place (or places) from which a firm does business. It can be both a physical location and also virtual |
| Margin of safety | The difference between the actual level of output and the break-even output |
| Market | Where buyers and sellers meet to exchange goods and services |
| Market Growth | The percentage growth in the size of the market measured over a specific time period |
| Market Research | The process of planning, collecting and analysing data to help make marketing decisions |
| Market Share | The share of the total market that is owned by a particular business, product or brand. Usually expressed in percentages |
| Market Size | The total value of quantity of demand in a specific market over a specific period of time |
| Niche Market | A smaller part of any larger market in which customers have more specific needs and wants |
| Opportunity Cost | The cost of a decision and measured by the benefits forgone of the next best alternative |
| Patent | The right to be the only user of producer of a specified products or process |
| Permanent Employee | An employee who is employed on a formal employment contract and remains with the firm for and open-ended period unit the contract is ended |
| Temporary Employee | An employee who is employed for a shorter amount of time with a formal contract |
| Primary Research | The market research that involves the collection of data that does not yet exist |
| Profit (calculation) | The difference between total sales and total costs |
| Qualitative Research | Market research concerned with collecting data on attitudes, opinions, beliefs and intentions |
| Quantitative Research | Market research concerned with collecting data that can be counted (e.g. sales statistics) |
| Return | The rewards to enterprise (e.g. profit) |
| Revenue | The income or sales that a business achieves in period of time |
| Revenue (Calculation) | Price per unit X quantity sold |
| Risk | The probability or chance that hoped-for outcomes will not occure |
| Sample | A sub-set of people from a population |
| Share Capital | The finance invested in a business (limited company) by the shareholders - part of the equity capital or a firm |
| Social Enterprise | A business that has objectives other than making profit |
| Sole Trader | A one-person business with unlimited liability |
| Supplier | A business that provides goods and services to other firms |
| Total Costs | The total of all variable and fixed costs in a business |
| Trade Credit | The amount owed to suppliers of a business - a source of finance |
| Trademark | A word, symbol or phrase used to identify a particular company's product and differentiate it from other companies products |
| Unlimited Liability | The business is responsible for all debts and costs to the business |
| USP (Unique Selling Point) | A feature of a product or service that makes it stand out compared with competition |
| Variable Costs | Costs that vary directly in proportion to output (e.g. materials, pay related to amounts produced or sold) |
| Venture Capital | Investment made by specialist funds to finance the launch, development or expansion of a private company |
| Working Capital | The amount of money that a business has available to conduct day-to-day activities |
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