Book1 Flashcards
(292 cards)
1
Q
Business
A
Any unincorporated firm such as a sole trader or partnership.
2
Q
Company
A
Any incorporated firm such as a private limited company (Ltd) or public limited company (Plc)
3
Q
Asset-led Marketing
A
A business strategy based on the core strengths (core competencies) of the firm. Businesses that adopt this approach use their core assets, such as brand name, to develop and launch new products.
4
Q
Market Orientation
A
An outward-looking approach basing product decisions on consumer demand, as established by market research
5
Q
Product Orientation
A
A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
6
Q
Marketing
A
The action or business of promoting and selling products or services, including market research and advertising to satisfy customers.
7
Q
Unique Selling Point (USP)
A
Something that makes a product stand out from its competitors
8
Q
Product
A
A thing that you can touch (tangible) that you can offer for sale to your customers.
9
Q
Differentiation
A
The extent to which consumers view your product or service as being different from those of rivals.
10
Q
Product Portfolio
A
The range of products or brands provided by a business
11
Q
Brand
A
A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of a seller and differentiates them from those of competitors
12
Q
The 4P’s
A
Product, Price, Place, Promotion
13
Q
Product Life Cycle
A
The stages through which goods and services move from the time they are introduced on the market until they are taken off the market.
14
Q
Extension Strategy
A
Method used to increase the life of a product and prevent it falling into decline
15
Q
Cash Flow
A
The inflows and outflows of cash through a business
16
Q
Introduction Stage
A
The initial stage of a product’s life cycle; its first appearance in the marketplace, when sales start at zero and profits are negative
17
Q
Growth Stage
A
The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are starting to be made.
18
Q
Maturity Stage
A
Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them
19
Q
Saturation Stage
A
That stage of the product life cycle where additional growth in the market is very difficult as there are too many competitors.
20
Q
Decline Stage
A
Stage of the product life cycle when sales decline and the product might eventually exit the market
21
Q
The Boston Matrix
A
A model which analyses a product portfolio according to the growth rate of the whole market and the relative share of a product within that market; a product is placed in one of four categories - star, cash cow, problem child or dog
22
Q
Dog
A
In the Boston Matrix this is a product experiencing low market share in a low growth market.
23
Q
Star
A
In the Boston Matrix this is a product with a high market share of a high growth market.
24
Q
Problem Child
A
In the Boston Matrix this is a product that has a small share of a fast growing market
25
Cash Cow
In the Boston Matrix, this is a product with a high share of a low growth market which generates high returns to finance other elements of the matrix.
26
Penetration Pricing
Setting a low initial price on a new product to appeal immediately to the mass market
27
Price Skimming
A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion to attract the so-called 'early adopters'
28
Cost-Plus Pricing
Adding a standard markup to the cost of the product
29
Competitive Pricing
When the product is priced in line with or just below competitors' prices to try to capture more of the market.
30
Psychological Pricing
Pricing goods and services at price points that make the product appear less expensive than it is and give the perception of value e.g. £9.95
31
Contribution Pricing
The business calculates the variable costs of making or buying a product and then adds a contribution towards its fixed costs.
32
Pricing Strategy
The pricing policies or methods used by a business when deciding what to charge for its products
33
Promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
34
Above the Line Promotion
The use of mass media channels in order to increase consumer awareness of a product or service e.g. television.
35
Below the Line Promotion
A promotional effort that includes in-store promotions, coupons, dealer discounts, and product placement.
36
Distribution Channel
The means by which you deliver the product or service to the customer
37
Wholesaler
A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.
38
Retailer
A distribution channel that sells to the end consumer
39
Manufacturer
A person or company that makes goods for sale
40
Direct Distribution Channel
A manufacturer sells the product directly to the customer
41
Traditional Distribution Channel
Manufacturer to wholesaler to retailer to consumer
42
Global Marketing
A marketing strategy that consciously addresses customers, markets, and competition throughout the world.
43
Global Brand
A brand marketed under the same name in multiple countries
44
Digital Media
Electronic devices and media platforms such as computers, cell phones, social networking sites, and the Internet, that allow users to communicate, and interact with one another.
45
Social Media
Electronic media that allows people with similar interests to participate in a social network
46
E-tailing
Online retailing that involves retailers selling products over the Internet to customers.
47
M-Commerce
The use of a mobile device for the purpose of buying or selling goods or services
48
The Marketing Mix
The set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
49
Budget
A forward financial plan of the income and expenditure for a business over a specified period of time.
50
Owner's Capital
Money put into the business by the owner
51
Trade Credit
The practice of buying goods and services now and paying for them later but this usually incurs an interest charge.
52
Venture Capital
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable
53
Share Capital
Money raised from the sale of shares of a limited company
54
Leasing
Obtaining the use of equipment or vehicles and paying a rental or leasing charge over a fixed period. this avoids the need for the business to raise long-term capital to buy the asset. Ownership remains with the leasing company.
55
Debt Factoring
A financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee.
56
Loan
An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus the lending fee, called interest.
57
Bank Overdraft
The bank allows a business or individual to overdraw their account up to an agreed limit for a specified time, to help overcome a temporary cash shortfall. Interest is charged daily on the amount overdrawn.
58
Retained Profit
Profit which is kept back in the business and used to pay for investment in the business.
59
Sale of Assets
A method of raising short term finance by disposing of business assets in return for cash
60
Cash Flow Forecast
Predicts the cash inflows and outflows in future periods, usually months or quarters.
61
Cash Deficit
A situation where a business has more cash flowing out than flowing in.
62
Cash Surplus
When estimated income is greater than estimated expenses.
63
Income Statement
A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time.
64
Gross Profit
Net sales - cost of goods sold
65
Net Profit
Gross Profit - Expenses
66
Cost of Goods Sold
the amount of money a firm spent to buy or produce the products it sold during the period
67
Gross Profit Margin
Gross profit/sales revenue x 100
68
Net Profit Margin
Net profit/sales revenue x 100
69
Profitability Ratios
These measure the income and the operating success of a company for a given period of time
70
Flexible Working
Working arrangements that allow employees some flexibility in the hours and time that they work.
71
Job Sharing
An arrangement whereby two part-time employees share one full-time job
72
Temporary Staff
Workers employed for a fixed period of time after which the employment contract may not be renewed
73
Hot-Desking
Sharing desks or workstations between workers as a way of saving space and resources
74
Part-Time Work
Permanent employment in which individuals work less than a standard work week of 40 hours
75
Zero-hours contract
No minimum hours of work are offered and workers are only called in and paid when work is available
76
Home Working
Working at home, while communicating with your office by telephone, computer or other mobile device.
77
Multi-Skilling
Where workers are trained in more than one skill which enables them to do a range of jobs.
78
Workforce Planning
The process of predicting an organisation's future labour needs and the availability and skills of current employees and external hires to meet those employment needs and execute the organisation's business strategy
79
Recruitment
The process through which the organisation seeks applicants for potential employment
80
On the Job Training
Employee training at the place of work while he or she is doing the actual job.
81
Off the Job Training
Training that takes place away from the work area e.g. at a local college.
82
External Recruitment
The process of seeking new employees from outside the firm which brings in new skills and experiences.
83
Internal Recruitment
Appointing workers from inside the business
84
Job Analysis
The process of getting detailed information about jobs
85
Job Description
A written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
86
Person Specification
A detailed list of the qualities, skills and qualifications that a successful applicant will need to have. Often categorised as being desirable and essential.
87
Interview
A face-to-face or telephone questioning of a respondent to obtain desired information.
88
Work Trial
Giving an opportunity for a potential candidate to undertake the role on a trial basis to see how they fit in with the company and to assess their competency to undertake the job successfully.
89
Telephone Interview
Telephone conversation between an interviewer and a respondent
90
Staff Appraisal
A meeting in which a member of staff discusses with their manager how well they have been doing their job. It provides a means of assessing their performance and future training needs.
91
360-degree feedback
A performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves.
92
Peer Assessment
Assessment by co-workers of their performance in the workplace.
93
Induction Training
Training aimed at introducing new employees to a business and its procedures
94
Apprenticeships
These involve a combination of paid on-the-job training and classroom instruction.
95
Workforce Performance
Methods of measuring the effectiveness of employees including labour productivity, staff turnover and absenteeism
96
Labour Productivity
Output per time period / number of employees
97
Absenteeism
The number of working days lost as a result of an employee's deliberate or habitual absence from work
98
Labour Turnover
A measure of how many people leave a business over a given period of time. It is usually expressed as a percentage of the total labour force
99
Organisational Design
The framework that provides a business with a structure to achieve its objectives
100
Authority
The power or right to give orders, make decisions, and enforce obedience.
101
Delegation
The process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
102
Span of Control
The number of subordinates who report directly to a line manager
103
Hierarchy
A system or organisation in which people or groups are ranked one above the other according to status or authority.
104
Centralisation
Keeping all of the important decision-making powers within head office or the centre of the organisation
105
Decentralisation
Decision-making powers are passed down the organisation to empower subordinates and regional/product managers
106
Empowerment
Giving employees the authority to correct a problem without first checking with management
107
Chain of Command
The line of authority that moves from the top of a hierarchy to the lowest level
108
Delayering
The removal of one or more of the levels of hierarchy from an organisational structure
109
Tall Structure
Characterised by an overall narrow span of control and a relatively large number of hierarchical levels
110
Flat Structure
Characterised by an overall broad span of control and relatively few hierarchical levels
111
Matrix Structure
A company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have to report to more than one manager. Commonly used with project teams.
112
Motivation
The reason or reasons one has for acting or behaving in a particular way.
113
F.W. Taylor and Scientific Management
Theory on how to motivate workers to increase performance, used scientific management approach, believed in piece work payment and economic man.
114
Scientific Management
Studying workers to find the most efficient ways of doing things and then teaching people those techniques
115
Herzberg's Two-Factor Theory
A theorist who devised a two-factor theory that suggested that motivation depends on the satisfaction of both hygiene factors and the motivators.
116
Maslow's Hierarchy of Needs
Humanist psychologist who developed a pyramid representing heirarchy of human needs.
117
Elton Mayo and the Hawthorne Studies
Hawthorne Experiment 1928, founder of the human relations movement. His focus identified the importance of team working and recognition.
118
Hygiene Needs
Lower-level needs described in Herzberg's two-factor theory. Herzberg proposed that meeting these needs would eliminate dissatisfaction but would not result in motivated behavior or a state of positive satisfaction.
119
Motivator Factors
Refer to the presence or absence of sources of job satisfaction
120
Time and Motion Studies
Studies of which tasks must be performed to complete a job and the time needed to do each task.
121
Production Line
A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs
122
Vroom's Expectancy Theory
This theory states that people will behave based on what they expect as a result of their behaviour. In other words, people will work in relation to the expected reward.
123
The Porter-Lawler Extension of Expectancy Theory
If performance results in equitable and fair rewards, people will be more satisfied; high performance can lead to rewards and high satisfaction
124
Piece Rate Pay
Employees are paid for each item produced that meets the desired quality standard
125
Commission
An amount paid to an employee based on a percentage of the employee's sales
126
Salary
A fixed amount of money paid to an employee for each pay period (usually monthly).
127
Wage
An amount of money paid to an employee at a specific rate per hour worked.
128
Share Ownership
Is where shares in the company are given to employees so that they become part owners in the company
129
Performance Related Pay
A bonus scheme to reward staff for above-average work performance
130
Bonus
An additional amount of payment above basic pay as a reward for good work
131
Job Enlargement
Increasing the number of different tasks that a worker performs within one particular job
132
Job Enrichment
Changing a task to make it inherently more rewarding, motivating, and satisfying
133
Job Rotation
A job enrichment strategy that involves moving employees from one job to another. This requires additional training.
134
Team Working
Production is organised so that groups of workers undertake complete units of work
135
Consultation
A process in which two or more individuals with varying degrees of experience and expertise deliberate about a problem and its solution
136
Leadership
The ability to motivate individuals and groups to accomplish important goals
137
Management
The process of accomplishing the goals of an organisation through the effective use of people and other resources.
138
Management by Objectives (MBO)
A process of setting mutually agreed upon goals and using those goals to evaluate employee performance
139
Theory X
The assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform
140
Theory Y
The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction.
141
McGregor's Theory X and Theory Y
A theory of motivation based on *management perceptions of worker attitudes* in the workplace. *Theory X* managers are authoritarian and assume that employees need to be supervised. *Theory Y* managers assume that employees seek recognition and praise for their contributions and achievements.
142
Fiedler's Contingency Theory
In order to maximize work group performance, leaders must be matched to the right leadership situation
143
Authoritarian Leadership Style
Characterised by a leader who takes charge, makes all the decisions, and dictates strategies and work tasks.
144
Paternalistic Leadership Style
Leaders who treat their employees as family members. They are consultative and act in the best interests of their employees
145
Democratic Leadership Style
A leadership style that is characterised by considerable input from group members
146
Trade Union
A trade body that seeks to gain higher wages and better working conditions for their members.
147
ACAS
Advisory, Conciliation and Arbitration Service
148
Negotiation
A form of communication between opposing sides in a conflict in which offers and counteroffers are made and a solution occurs only when both parties agree
149
Strike
To refuse to work in order to force an employer to meet certain demands.
150
Work to Rule
Situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions.
151
Equal Opportunities
The right to access the same opportunities, regardless of factors such as race, age, sex, mental or physical capability
152
Industrial Action
Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favour of employees.
153
Collective Bargaining
When unions represent workers in labour discussions with management
154
Contract of Employment
A legal document that sets out the terms and conditions governing a worker's job
155
Health and Safety
The process of ensuring that the working environment within a firm is both a healthy and a safe one.
156
Minimum Wage
A minimum price that an employer can pay a worker for an hour of labour
157
Dismissal
Being removed from a duty, position, or employment
158
Added Value
The process of increasing the worth of resources by modifying them in some way.
159
Added Value Calculation
Selling price - cost of inputs - cost of transformation (manufacture)
160
Job Production
Producing a one-off item specially designed for the customer
161
Batch Production
Producing a limited number of identical products - each item in the batch passes through one stage of production before passing on to the next stage
162
Flow Production
Large-scale production of a standard product, where each operation on a unit is performed continuously one after the other, usually on a production line
163
Productivity
Output per worker hour that is measured over a defined period of time
164
Productivity Formula
Number of Units Produced / Number of Workers
165
Capacity Utilisation
The proportion of total capacity that is used (expressed as a percentage)
166
Capacity utilisation formula
Current output/maximum possible output x 100
167
Computer Aided Design
The use of computers in the design of products
168
Computer-aided manufacturing (CAM)
Using computers to operate and control machines and processes to manufacture a product.
169
Automation
The replacement of human labour by machines in the production process
170
Lean Production
An approach to production that emphasises the elimination of waste in all aspects of production processes
171
Kaizen
Japanese term for continuous improvement
172
Just-in-Time Production
A production system that emphasises the production of goods to meet actual current demand, thus minimising the need to hold inventories of finished goods and work in process at each stage of the supply chain
173
Cell Production
A form of production where a team of employees take responsibility for a major part of the total production process. They carry out a range of different tasks and this can help to ensure that quality is maintained.
174
Time-Based Management
An approach that recognises the importance of time and seeks to reduce the level of 'unproductive' time within an organisation
175
Continuous Improvement
Ongoing small, incremental improvements in all parts of an organisation
176
Quality
A measurement of a product's ability to satisfy a customer's needs or requirements
177
Quality Control
A process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards. It seeks to inspect out fault but does not prevent it!
178
Quality Assurance
This is a system of agreeing and meeting quality standards at each stage of production to ensure customer satisfaction. It seeks to prevent faults and is not reliant upon a final inspection.
179
Total Quality Management (TQM)
The philosophy that everyone in the organisation is concerned about quality, throughout all of the firm's activities, to better serve customer needs
180
Quality Chains
A feature of TQM that views each link in the production process as a link between supplier and customer
181
Quality Circles
Voluntary groups of people drawn from various production teams who make suggestions about quality.
182
Benchmarking
A process of continuously measuring results against an industry leader, and identifying steps and procedures to improve performance. This needs to ideally be on a like-for-like basis for it to be effective.
183
Zero Defects
Eliminating quality defects by getting things right first time.
184
Stock Control
The processes and controls used by a business to ensure that it has sufficient (but not too much) stock for its purposes
185
Stock Control Charts
Overall objective of stock control is to maintain stock levels so that the total cost of holding stock is minimised. Charts include lead-time, buffer stock, reorder level and reorder quantity.
186
Supplier
A business which sells (or supplies) products to another business.
187
Computerised Stock Control
Stock details held on a computer database or spreadsheet
188
Buffer Stock
Extra inventory held to guard against uncertainty in demand or supply
189
Reorder Level
The level at which stock has to be reordered
190
Lead Time
The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale.
191
Minimum Stock Level
The least amount of inventories that a business wishes to hold; generally this minimum is above zero as a precautionary measure.
192
Innovation
An improvement of an existing technological product, system, or method of doing something.
193
Research and Development (R&D)
A set of activities intended to identify new ideas that have the potential to result in new goods and services. This is classified as a sunk cost for a business.
194
Sunk Cost
A cost that has already been paid and cannot be recovered
195
Product Design
The characteristics or features of a product or service that determine its ability to meet the needs of the user.
196
Product Design Process
1. idea development
197
Economies of Scale
Factors that cause a producer's average cost per unit to fall as output rises
198
Managerial Economies of Scale
Reductions in average cost as a result of being able to employ specialist managers who are more productive
199
Financial Economies of Scale
A situation where large firms are able to borrow money on better terms than smaller firms which makes the cost of financing investment and therefore unit costs lower.
200
Purchasing Economies of Scale
A reduction in unit costs as a result of buying in large quantities; these are sometimes called bulk buying economies of scale.
201
Internal Diseconomies of Scale
Are forces within a firm that cause the average/unit cost of that firm to increase as it grows in size.
202
External Economies of Scale
The cost benefits that all firms in the industry can enjoy when the industry expands.
203
The organisation of factors of production in such a way as to generate profits.
Enterprise
204
Small and medium-sized enterprises employing fewer than 250 people.
SME
205
A person who organizes, manages, and takes on the risks of a business.
Entrepreneur
206
Basic requirements for human survival e.g. shelter, food and water
Needs
207
Desires that can be satisfied by consuming a good or service. They are not essential.
Wants
208
The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
Primary Sector
209
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
Secondary Sector
210
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
Tertiary Sector
211
A system by which goods and services are produced and distributed
Economy
212
An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.
Stakeholder
213
A formal written document that describes the nature of a business and how it will operate. It is a working document that contains a marketing plan, a financial plan, a human resources plan and an operational plan.
Business Plan
214
A place where buyers and sellers come together for the buying and selling of goods and services.
Market
215
A smaller section of a larger market in which customers have more specific needs and wants
Niche Market
216
A good is targeted at all possible customers in a market, regardless of the differences in their specific needs and wants.
Mass Market
217
A person who purchases goods and services for personal use
Consumer
218
Someone who pays for goods or services
Customer
219
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Service
220
A tangible good.
Product
221
Customers are only a short distance away
Local Market
222
The activity of buying or selling goods and services in all the countries of the world.
Global Market
223
The total value or quantity of demand in a specific market over a specific period of time. Can be measured in value terms (e.g. sales) or in terms of quantities (e.g. units) bought or sold.
Market Size
224
The portion of a market controlled by a particular company or product.
Market Share
225
The process of dividing the total market into smaller groups whose members have similar characteristics.
Market Segmentation
226
A range of market structures with the two extremes of monopoly and perfect competition at each end. Somewhere in between lie all markets.
Spectrum of Competition
227
A market in which there are many buyers but only one seller.
Monopoly
228
A market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products.
Monopolistic Competition
229
A market structure in which a few large firms dominate a market
Oligopoly
230
A market structure in which a large number of firms all produce the same product
Perfect Competition
231
Of the same kind
Homogenous
232
Protection for consumers against unfair, unethical or unjust business practices.
Consumer Protection
233
Consumer willingness and ability to buy products
Demand
234
The quantity of something that producers are willing and able to provide to the market.
Supply
235
A situation in which quantity demanded equals quantity supplied
Market Equilibrium
236
The situation that exists when demand is greater than supply.
Excess Demand
237
The situation that exists when supply is greater than demand.
Excess Supply
238
A government department in the United Kingdom for strengthening business competition and preventing/reducing anti-competitive strategies
Competition and Markets Authority (CMA)
239
Occurring at or dependent on a particular season
Seasonal
240
Monetary value of a product as established by supply and demand
Price
241
A measure of the sensitivity of demand to changes in price
Price Elasticity of Demand
242
A measure of the responsiveness of the quantity demanded to changes in income, measured by the percentage change in the quantity demanded divided by the percentage change in income
Income Elasticity of Demand
243
Consumers are very sensitive to price changes and buy more at low prices and less at high prices.
Price Elastic
244
Buyers are not sensitive to price changes and demand is relatively unchanged.
Price Inelastic
245
When the percentage change in price and quantity demanded are the same
Unit Elastic
246
good for which demand increases faster than income when income rises. They are goods with an income elasticity greater than 1.
Luxury Good
247
A good for which, other things being equal, an increase in income leads to a decrease in demand e.g. white sliced bread
Inferior Good
248
A good for which, other things equal, an increase in income leads to an increase in demand and vice versa.
Normal Good
249
A good that can be used in place of another good e.g. water instead of Coca-Cola
Substitute
250
Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely).
Complementary Good
251
The action or activity of gathering information about consumers' needs and preferences.
Market Research
252
First hand research that is specific to the needs of the individual business.
Primary Research
253
Past research which has already been performed and often already published.
Secondary Research
254
Descriptive data drawn from non statistical sources that give an insight into the reasons behind consumer buying behaviour.
Qualitative Data
255
The use of numerical and statistical data.
Quantitative Data
256
The process of selecting representative units from a total population
Sampling
257
Method of selecting from a population in which each person has an equal probability of being selected
Random Sample
258
A sample constructed to reflect the major characteristics of a given population e.g. if 40% of a target market are female, then 40% of respondents must be female.
Quota Sample
259
Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.
Bias
260
The part of an economy that is controlled by the government.
Public Sector
261
The part of the economy that involves the transactions of private individuals and businesses. They are not associated with government.
Private Sector
262
A business owned by one person
Sole Trader
263
A business owned by two or more people
Partnership
264
A business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.
Private Limited Company
265
An incorporated business that allows the general public to buy and sell shares in the company via a stock exchange. All shareholders enjoy limited liability.
Public Limited Company
266
The owner is personally and fully responsible for all losses and debts of the business
Unlimited Liability
267
A form of business ownership in which the owners are liable only up to the amount of their individual investments.
Limited Liability
268
Organisations that do not aim to make a profit; rather, they use any profit or surplus they generate to support their aims (eg. a charity)
Not-for-Profit Organisations
269
Non-profit social enterprises that provide voluntary support for good causes
Charities
270
Businesses owned jointly by their members, who share the profits equally
Co-Operatives
271
The geographical site of a business.
Business Location
272
The number of people passing a particular location within a given time period
Footfall
273
Where the businesses get money from internally or externally and whether it's needed for the short term or long term.
Sources of Finance
274
A fixed amount loan from a bank which is generally used to finance long-term assets.
Bank Loan
275
A deficit in a bank account caused by drawing more money than the account holds.
Overdraft
276
The process of selling accounts receivable for cash to a third party who will collect the outstanding debt.
Factoring
277
A long-term loan extended to someone who buys property.
Mortgage
278
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.
Venture Capitalist
279
Something, typically money, that is owed or due
Debt
280
Total revenue minus total cost
Profit
281
A method of determining what sales volume must be reached before total revenue equals total costs. Calculated by dividing fixed costs by contribution per unit.
Break-Even Analysis
282
Selling price - variable cost per unit
Contribution per Unit
283
Contribution per unit x number of units sold
Total Contribution
284
The difference between actual or expected sales and sales at the break-even point.
Margin of Safety
285
Costs that do not vary with the quantity of output produced
Fixed Costs
286
Costs that vary with the quantity of output produced
Variable Costs
287
Costs comprising both fixed and variable components e.g. a phone has a line rental cost which is fixed and then you pay for calls on top which is a variable cost.
Semi-Variable Costs
288
A cost that can be easily traced to a specified cost object
Direct Cost
289
Cost that cannot be easily or cost-effectively traced to a cost object.
Indirect Cost
290
The costs not directly related to the production or selling of goods.
Overhead Costs
291
The amount that a business earns from selling its goods or services.
Sales Revenue
292
A business that is set up to help society rather than to make a profit.
Social Enterprise
