business definitions

Question 1

market research

Answer 1

gathering info on how customers purchase goods and services and finding their wants and needs.

Question 2

product oriented

Answer 2

focuses on developing the product

Question 3

EOS

Answer 3

the reduction in average costs enjoyed by a business as output rises

Question 4

Distribution

Answer 4

the route a product takes from producer or manufacturer to consumer.

Question 5

specialisation

Answer 5

specialisation refers to when a business or country focussed on producing just one product or a narrow range of products.

Question 6

poters generic strategy

Answer 6

porters generic strategies describe the different strategies a business may use in order to gain a competitive advantage over their rivals there are 2 generic strategies either lower costs or differentiation which can be applied to mass or niche markets

Question 7

Productivity

Answer 7

The output per worker or per machine in a given time

Question 8

capacity utilisation

Answer 8

the percentage of total capacity that is actually being achieved in a given period.
bus wants to operate at a capacity of 85 - 90%

Question 9

motivation

Answer 9

factors that stimulate desire and energy in people to be continually interested and committed to their job,role or subject or to make an effort to attain a goal.

Question 10

market oriented

Answer 10

focuses on target markets wants and needs.

Question 11

differentiation

Answer 11

making product unique from competitors

Question 12

market mapping

Answer 12

A visual illustration of how current businesses are preceived in a market.

Question 13

What are the four elements of the marketing mix.

Answer 13

Price product place promotion

Question 14

Market segmentation

Answer 14

Grouping together customers but similar characteristics

Question 15

R&D prototype

Answer 15

First versions of a device From which others are developed

Question 16

Design mix

Answer 16

creating a product or service that people desire to have that they can afford to buy ot and works reliably

Question 17

Business plan

Answer 17

the business plan is a document that illustrates the thought process of the start up bus or the future planning of an established business

Question 18

Sales forecasting

Answer 18

A sales forecast is an attempt to estimate the likely number of products that will be sold by the business or market over a future period

Question 19

Breakeven

Answer 19

Number of units or customers a business needs to sell so the revenue matches the cost fixed+ variable.There is no profit or no loss.

Question 20

Stock market floatation

Answer 20

when a ltd becomes a plc by selling its shares publicly on a stock exchange for the public to buy.

Question 21

Interest

Answer 21

A fee paid for the use of another parties money to the borrower it is the cost of renting cash to the lender the income from lending it

Question 22

Asset

Answer 22

something valuable than entity own benefits from a has use of it in generating income

Question 23

Retained profit

Answer 23

profits that are reinvested back into the business rather than paid to shareholders as dividend

Question 24

overdraft

Answer 24

An agreement with the bank where businesses can make payments from their bank account exceeding the available cash balance

Question 25

Peer-to-peer funding

Answer 25

An agreement with the bank where businesses can make payments from their bank account exceeding the available cash balance

Question 26

Business Angel /venture capital list

Answer 26

an investor who is willing to invest in high-risk high growth firms at a very early stage they also usually carry out the role of a mentor to entrepreneurs.

Question 27

Crowd funding

Answer 27

The practice of funding a project venture by raising small amounts of cash from a large number of people via the Internet in return the funders get some form of award

Question 28

share capital

Answer 28

The funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares the owners are entitled to voting rights and a share of profits in the form of dividends

Question 29

Leasing/higher

Answer 29

A process by which a firm can obtain the use of a non-current asset for which it must pay regular payments rather than purchasing the asset outright

lessor is the person who is the owner of the assets

Lesse is the receiver of the service or asset on the lesse contract

Question 30

Grants

Answer 30

Is some of cash given by a government or other organisation for a particular purpose

Question 31

Trade credit

Answer 31

An agreement between businesses and its supplier that allows the exchange of goods and services without any immediate exchange of cash it’s a buy now pay later business scheme

Question 32

Unlimited liability

Answer 32

the business owner or owners are legally responsible for all of the debts of the business.

Question 33

limited liability

Answer 33

the business owner or owners are only responsible for business debts up to the value of their financial investment in the business

Question 34

PED

Answer 34

how consumers react to prices of good and services

Question 35

YED

Answer 35

How consumers react to change and income

Question 36

Organisational culture

Answer 36

The values and behaviour shared by people in the organisation, what they consider to be important in life and work. It is shared understanding and a way to act.