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Description
Flashcards by Sophie Weldon, updated more than 1 year ago
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Created by Sophie Weldon
almost 8 years ago
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| Question | Answer |
| Business Unit 1 | By Sophie |
| Primary research | Collecting data that did not exist before. E.g collecting data |
| Secondary research | Collecting data that already exists E.g internet research |
| Pros of primary research | More accurate Up to date Specific to needs Effective at collecting qualitative data Direct customer contact |
| Pros of secondary research | More general Less time-consuming Effective at collecting quantitative data |
| Quantitative data | Data that is in numerical form. |
| Qualitative data | Data that is opinions and views. |
| Market research | Researching the market. |
| Market segment | A group of buyers with similar characteristics and buying habits. E.g gender, age |
| Market segmentation | This allows a business to: Meet specific customer needs Differentiate their products Develop a unique brand image Target marking activity |
| Market mapping | A diagram can be used to position and compare products in a market, and identify opportunities where customer needs are not being met. |
| Gap in the market | Where there is a demand for a good or service that is not currently being met by any businesses. |
| Added value | It is the difference between what a business pays its supplier and the price that it is able to change for the product. |
| Give examples of way to add value | Improve quality Better design Branding More convenience USP |
| Importance of added value | The higher the added value of a product, the soon costs can be paired off and the quicker a business will make profit. |
| Unique selling point (USP) | Another way to add value to a product. |
| 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 product or service. |
| Franchisee | A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor. |
| Benefits of starting a franchise? | An established brand name Training Equipment Ongoing support Advertising and promotion |
| Drawbacks of a franchise | Start-up cost can be expensive Royalty payment Complicated application process Lack of autonomy and control Limited flexibility to make your own decisions |
| Entrepreneur | A person who owns and runs their own business and takes risks. |
| Enterprise | The initial idea for a business and the willingness by an individual to show initiative. |
| Enterprises | Another word used for businesses |
| What are enterprise skills | Risk-taking Showing initiative Willingness to undertake a new venture |
| Blue sky thinking | Coming up with as many ideas as possible to solve a problem. |
| Lateral thinking | Involves thinking differently to try to find new and unexpected ideas. |
| Patent | 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. |
| Trademark | The logo, sign or other feature of a product or businesses that cannot be copied by others. |
| Calculated risk | Putting a numerical value or probability on a risk and the likely hood of it coming true. |
| Revenue / Turnover | Is the amount of income received from selling goods or services over a period of time. Total revenue = Price + Quantity |
| Fixed cost | Costs that do not vary with the output produced by a business e.g salaries |
| Variable cost | Cost that change directly with the number of products made. Eg. raw materials. Variable cost = Cost of one unit x Quantity produce |
| Profit | When revenues of a business are greater than its total cost. |
| Loss | If a business's cost are greater than its revenues then it will make a loss. |
| Cash flow | Is the money flowing into and out of a business on a day-to-day basis. |
| Cash-Flow Forecast | It predicts how the cash will flow through a business over time. |
| Cash-Flow problem | When the business does not have enough money flowing into the business to pay its day-to-day bills. |
| Net cash flow | The receipts of a business minus its payment, either positive or negative. |
| Insolvent | Without sufficient cash within the business. |
| Business plan | Is a plan for the development of the business, giving forecast of items such as sales, cost and cash flow. |
| Shares | Is part ownership in a business |
| Liability | The legal responsibility of a business towards its debts |
| Unlimited liability | The owner is legally responsible for any debts. They close lose his or hers personal belongings. |
| Limited Libility | The owners and the business are separate legal entities. They can only lose the amount that they have invested. |
| Interest Rate | Is the percentage reward or payment over a period of time that is given to savers or paid by borrowers on loans |
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