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Business > Business Key Terms (DS) > Flashcards

Business Key Terms (DS) Flashcards

1
Q

Supplier

A

A business which sells (or supplies) products to another business.

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2
Q

Customer

A

Any person or organisation which buys or is supplied with a product or by a business.

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3
Q

Consumer

A

The person who ultimately uses (or consumes) a product

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4
Q

customer needs

A

Value for money
Disability access
Good quality
Safe environment

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5
Q

Primary (or field) research

A

The gathering of new information which has not been collected before. E.g Survey, focus group, interview

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6
Q

survey

A

Research involving asking questions of people or organisations.

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7
Q

respondents

A

Those who provide data for a survey usually by answering questions in a questionnaire or interview.

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8
Q

Questionnaire

A

A list of questions to be answered by respondents, designed to gather information about consumers’ tastes.

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9
Q

Focus Group

A

In market research, a group of people brought together to answer questions and discuss a product, brand or issue.

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10
Q

Secondary (or desk) research

A

Information that has already been gathered e.g sales records, government statistics, newspaper articles

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11
Q

Qualitative data

A

Information about opinions, judgements and attitudes. E.g interviews, focus groups, questionnaires

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12
Q

Quantitative data

A

Data that can be expressed as numbers and can be statistically analysed. E.g survey, sales data

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13
Q

Market segment

A

Part of a market that contains a group of buyers with similar buying habits, such as age or income.

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14
Q

Price sensitive

A

When the price is very important in the decision about whether or not to buy.

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15
Q

Market Map (Perceptual Map or Positioning Map)

A

A diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality.

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16
Q

Gap in the market

A

Occurs when no business is currently serving the needs of customers for a particular product.

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17
Q

Product range

A

A group of similar products made by a business like a number of different soap products.

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18
Q

Brand

A

A named product which customers see as being different from other products and which they can associate or identify with.

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19
Q

Added Value

A

The increase worth that a business creates for a product; it is the difference between what a business pays to its suppliers and the price that is able to charge for the product/ service.

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20
Q

Unique selling point or USP

A

A characteristic of a product that make it different from other similar products being sold in the market such as design, quality or image.

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21
Q

Franchise

A

The right given by one business to another to sell goods or services using its name.

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22
Q

Franchisee

A

A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor.

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23
Q

Franchisor

A

The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment.

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24
Q

A person who owns and runs their own business and takes risks.

A

Entrepreneur

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25
Q

A willingness by an individual or a business to take risks, show initiative and undertake new ventures.

A

Enterprise

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26
Q

Physical, tangible products like a car, a pair of scissors or a television set.

A

Goods

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27
Q

Non-physical, intangible products like a taxi journey, a haircut or a television programme.

A

Services

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28
Q

An advantage a business has that enable it to perform better than its rivals in the market and which is both distinctive and defensible.

A

Competitive Advantage

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29
Q

Thinking differently to try and find new and unexpected ideas.

A

Lateral Thinking

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30
Q

A technique of creative thinking where participants are encourage to think of as many ideas as possible about an issue or a problem.

A

Blue Skies Thinking

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31
Q

The discovery of new processes and potential new products, typically after a period of research.

A

Invention

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32
Q

The process of transforming inventions into products that can be sold to customers.

A

Innovation

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33
Q

Right of ownership of an invention or process when it is registered with the government.

A

Patent

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34
Q

Legal ownership of material such as books, music and films which prevents these being copied by others.

A

Copyright

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35
Q

The symbol, sign, or other features of a product or business that can be protected by law.

A

Trademarks

36
Q

The probability of a negative event occurring.

A

Calculated Risk

37
Q

Financial Objectives

A

Targets expressed in money terms such as making a profit, earning income or building wealth.

38
Q

SMART

A

Specific, measurable, achievable, realistic and timed

39
Q

Revenues
Sales Revenue
Turnover
Sales Turnover

A

The amount of income received from selling goods or services over a period of time

40
Q

Total Revenue

A

TR = P x Q

Total Revenue = Price x Quantity

41
Q

Sales volume

A

The number of items or products or services sold by a business over a period of time.

42
Q

Fixed costs

A

Costs which do not vary with the output produced such as rent, business rates, advertising costs, administration costs and salaries.

43
Q

Total Costs

A

All the costs of a business; it is equal to fixed costs plus variable costs.

44
Q

Total Costs

A

TC = FC + VC

Total Costs = Fixed Costs + Variable Costs

45
Q

Variable Costs

A

Costs which change directly with the number of products made by a business such as the cost of buying raw materials.

46
Q

Profit

A

Occurs when the revenues of a business are greater than its costs over a period of time.
TR - TC = P

47
Q

Cash Flow

A

The flow of cash into and out of a business

48
Q

Inflow

A

The cash flowing into a business, its receipts

49
Q

Outflow

A

The cash flowing out of a business, its payments

50
Q

Net Cash Flow

A

The receipts of a business minus its payments

Inflows – Outflows = Net Cash Flow

51
Q

Insolvency

A

When a business can no longer pay its debts

52
Q

Cash Flow Forecast

A

A prediction of how cash will flow through a business in a period of time in future

53
Q

Opening Balance

A

The amount of money in a business at the start of the month

54
Q

Closing balance

A

The amount of money in a business at the end of the month

55
Q

Trade Credit

A

Where a supplier gives a customer a period of time to pay a bill (or invoice) for goods or services once they have been delivered

56
Q

Stocks

A

Materials that a business holds. Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers.

57
Q

Long term finance

A

Sources of money for businesses that are borrowed or invested typically for more than a year e.g Mortgage, Venture Capitalist

58
Q

Short term finance

A

Sources of money for businesses that may have to be repaid with immediately or fairly quickly, such as an overdraft, usually within a year.

59
Q

Personal Savings

A

Money that has been set aside and not spent by individuals and households.

60
Q

Share Capital

A

The monetary value of a company which belongs to its shareholders, for example, if five people each invest £10,000 into a business, the share capital will be £50,000

61
Q

Shareholders

A

The owners of a company

62
Q

Venture Capitalists

A

An individual or company which buys shares in what they hope will be a fast growing company with a long term view of selling the shares at a profit.

63
Q

loan

A

Borrowing a sum of money which has to be repaid with interest over a period of time, such as 1-5 years.

64
Q

security (or collateral)

A

Assets owned by a business which are used to guarantee repayments of a loan; if the business fails to pay off the loan, the lender can sell what has been offered as security.

65
Q

Mortgage

A

A loan where property is used as security

66
Q

Dividend

A

A share of the profits of a company received by shareholders who own shares.

67
Q

Retained Profit

A

Profit which is kept back in the business and used to pay for investment in the business.

68
Q

Leasing

A

Renting equipment or premises

69
Q

Overdraft facility

A

Borrowing money from a bank by drawing more money than is actually in ais actually in a current account. Interest is charged on the amount overdrawn.

70
Q

Factoring

A

A source of finance where a business is able to receive cash immediately for the invoices it has issued from a factor, such as a bank, instead of waiting the typical 30 days to be paid.

71
Q

The combination of factors which help the business to take into account customer needs when selling a product – usually summarised as the 4 Ps, which are price, product, promotion and place

A

Marketing Mix

72
Q

The amount of money customers have to give up to acquire a product

A

Price

73
Q

A good or service produced by a business or organisation and made available to customers for consumption

A

Product

74
Q

Communication between the business and customer, making the customer aware that the product is for sale, telling or explaining to them what is the product, making the customers aware of how the product will meet the customers’ needs and persuading them to buy it for the first time or again.

A

Promotion

75
Q

The way in which a product is distributed – how it gets from the producer to the consumer

A

Place

76
Q

The only owner of a business which has unlimited liability.

A

sole trader (or sole proprietor)

77
Q

A legal obligation on the owner of a business to settle (pay off) all debts of the business. In law there is no distinction between what the business owes and owns and what the business owns and owes.

A

Unlimited Liability

78
Q

When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company.

A

Limited Liability

79
Q

The government authorities in the UK responsible for collecting tax.

A

HM Revenues and Customs (HMRC)

80
Q

A tax on the value of sales: it is paid by businesses to government.

A

VAT (Value Added Tax)

81
Q

A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.

A

Income Tax

82
Q

A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.

A

National Insurance Contributions (NICs)

83
Q

A tax on the profits of limited companies.

A

Corporation Tax

84
Q

The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.

A

Customer Service

85
Q

A measure of how much products meet customers’ expectations.

A

Customer Satisfaction

86
Q

Orders or sales that occur from customers who have bought the product or service in the past.

A

Repeat Purchases (or repeat business)

87
Q

An individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful.

A

Stakeholder

Business (1 decks)

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