component 1 defintions business oportunities Flashcards

1
Q

unlimited liability

A

situation where the owners of a business are personally resposible for all the debts and liablities of the business and if the business cant pay its debts the owners personal assets may be used to cover the debts

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2
Q

limited liability

A

where owners or shareholders of a company arent personally responsible for the companys debts and liabilities therefore personal belongings will not get repossesed if debts cant be paid

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3
Q

cooperatives

A

organisations that are owned and operated by a group of indivduals who come together to meet a common need or goal.

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4
Q

societies

A

a group of people who come together to start a club/ gorup sharing the same interests and not for benefits or profits

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5
Q

fixed costs

A

costs that do not vary with output no matter how much is sold fixed costs have to be paid for example rent, insurance tax

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6
Q

variable costs

A

vary in direct proportion to output, as output increases variable costs increase and vise versa for example raw materials and labour

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7
Q

semi variable costs

A

costs that contain both fixed and variable elements

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8
Q

direct costs

A

costs that arrise specifically from the produvtion of s product or provision of a service for example rent on a shop, materials, direct labour

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9
Q

overhead costs/ indirect costs

A

costs not directly related to the production of a specific product or service- rent, utliities

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10
Q

break even

A

point where a business makes neither a profit or incures a loss where total revenue = total costs

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11
Q

contribution

A

the difference between the selling price per unit and the variable cost per unit

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12
Q

margin of safety

A

difference between output level and break even output when output is above break even, thee amount by which demand can fall before a business incures losses.

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13
Q

demand

A

quantity off a good or service consumers are willing and able to purchace at a given price within a specific period of time

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14
Q

supply

A

quantity of a good or service that a producer is willing and able to supply at a given price during a given period of time

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15
Q

working capital

A

money needed to finance the day to say running of a business, allows stock to be bought and wages and bills to be paid.

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16
Q

investment capital

A

helps the business grow. funds businesses allocate for investment purposes

17
Q

capital expenditure

A

money to invest in fixed assets such as buildings and equipment

18
Q

market research

A

processs of collecting information about a businesses customers, the market place and the activities of competitors within the market place for exmaple quantitive and qualititve data

19
Q

primary research

A

field research, gathers first hand information directly relevant to the needs of a business for example, questionaires and focus groups

20
Q

secondary research

A

information not gathered specifically for the business but adapted for use, easily avaliable, for exmaple: official publications and online desk research

21
Q

sample

A

a group of respondants to a market research exercise who are selected to be representitive of the views of a target market as a whole

22
Q

random sampling

A

every member of the population has an equal chance of being chosen

23
Q

quota sampling

A

population is segmented into a number of groups that share the same characteristics

24
Q

market segmentation

A

a process of breaking down a market into sub- groups known as segmants that share similar characteristics for exmaple, income level, lifestyle and location

25
Q

business plan

A

a statement that outlines the way in which a business will attempt to achieve its objectives a clear ide of operation and direction

26
Q

market orientated

A

responding to competitive pressure and understanding market in which a business is operating in and monitoring competitors activities

27
Q

equilibrium price

A

In a free market, demand and supply equal the equilibrium price this is where the quantity demanded is equal to quantity supplied

28
Q

Demand

A

The amount of product consumers are willing and able to purchase at a given price

29
Q

Supply

A

The quantity of a product that suppliers are willing and able to supply at a given price

30
Q

market

A

a meeting place between buyers and sellers where goods and services are exchanged usually for money

31
Q

enterprise

A

a company or organisation involved in commercial actitvities

32
Q

competition

A

rivalry between organisations operating in the same market

33
Q

sme’s

A

small and medium enterprises, fewer employees and lower revenue ( add stats)

34
Q

costs

A

expenses incurred by a business or indivifual in the process of producing goods or providing a service

35
Q

reveunue

A

total amount of money that a business or organisation earns from its primary activities such as sales.
income generatef before deducting expenses tax and costs

36
Q

profits

A

financial gains or earnings a business generates from their operations/investments

37
Q

contribution

A