Business Key Words

Question 1

Staff Turnover

Answer 1

When staff leave the business

Question 2

Primary Research

Answer 2

Research that hasn’t been done before, you have to get it

Question 3

Secondary Research

Answer 3

Research that has been done before by other people

Question 4

Quantitive Data

Answer 4

Data depending on numbers

Question 5

Qualitive Data

Answer 5

Data depending on opinions

Question 6

Revenue

Answer 6

Price of Product x Units sold

Question 7

Net Cash Flow

Answer 7

Inflows - Outflows

Question 8

Total Costs

Answer 8

Fixed Costs + Variable Costs

Question 9

Opening Balance

Answer 9

Last Months Closing Balance

Question 10

Fixed Costs

Answer 10

Costs that don’t change with output

Question 11

Variable Costs

Answer 11

Costs that change with output

Question 12

Temporary Agency Workers

Answer 12

Not on a permanent contract

Question 13

Profit

Answer 13

Revenue - Total Costs

Question 14

Repeat Purchase

Answer 14

When customers return to the business to buy a product or service

Question 15

Entrepreneur

Answer 15

Someone who has ideas and takes risks

Question 16

Span of Control

Answer 16

Number of Workers a manager is responsible for

Question 17

Centralisation

Answer 17

A type of business where decisions are made, at the core of the organisation

Question 18

Decentralisation

Answer 18

A type of business where decisions are pushed down the hierarchy

Question 19

Ethics

Answer 19

Ideas about what is morally correct in a business

Question 20

Customer

Answer 20

The person who buys the product or service

Question 21

Consumer

Answer 21

The person who uses the product or service

Question 22

Customer Service

Answer 22

The quality in which staff treat their customers

Question 23

Introduction

Answer 23

The first stage of the product life cycle and a new idea or product

Question 24

Maturity

Answer 24

The product is at its peak in its life cycle, making the most money

Question 25

Growth

Answer 25

When a product begins to get popular and make an increased number of sales

Question 26

Decline

Answer 26

When the product begins to make a reduced number of sales

Question 27

Interest Rate

Answer 27

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding

Question 28

Price

Answer 28

How much money a product is sold for

Question 29

Market Map

Answer 29

A map that shows where there is a gap in the market

Question 30

Loan

Answer 30

Lump of money borrowed from a loaner such as a bank

Question 31

Entrepreneur

Answer 31

Someone who is willing to take risks and runs a business

Question 32

Sole Trader

Answer 32

Someone who runs their own business and gets all profits after tax is paid but is liable for all losses

Question 33

Private Limited Company

Answer 33

A type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from trading shares

Question 34

Product Range

Answer 34

A group of similar products made by a business

Question 35

Franchise

Answer 35

The right given by a business to another business to sell goods or use their name

Question 36

Brand image

Answer 36

The idea that customers have in their mind about a brand

Question 37

Franchisee

Answer 37

An individual or company that holds a franchise for the sale of goods or the operation of a service

Question 38

Enterprises

Answer 38

Another word for business

Question 39

Risk

Answer 39

The chance of damage or loss occurring as a result of making a decision

Question 40

Invention

Answer 40

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

Question 41

Innovation

Answer 41

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

Question 42

Patent

Answer 42

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

Question 43

Copyright

Answer 43

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