Business key words

Question 1

Profit

Answer 1

Revenue - Total costs

Question 2

Staff turnover

Answer 2

When staff leave the business

Question 3

Qualitative data

Answer 3

Opinions of people

Question 4

Quantitative data

Answer 4

Statistics and numbers

Question 5

Revenue

Answer 5

Price of product x Units sold

Question 6

Secondary Research

Answer 6

Research that has already been found and used in books and the internet

Question 7

Primary research

Answer 7

Research that has recently been carried out in person

Question 8

Net cash flow

Answer 8

Inflows - Outflows

Question 9

Opening balance

Answer 9

Last months closing balance

Question 10

Total costs

Answer 10

Fixed costs + Variable costs

Question 11

Fixed costs

Answer 11

Cost that doesn’t change with output

Question 12

Variable costs

Answer 12

Costs that do change with output

Question 13

Temporary agency workers

Answer 13

Not on a permanent contract

Question 14

Repeat purchase

Answer 14

when customers return to a business after there first time at the business

Question 15

Span of control

Answer 15

Number of workers a manager is responsible for

Question 16

Centralisation

Answer 16

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

Question 17

Decentralisation

Answer 17

A type of business where decisions are pushed down the hierarchy

Question 18

Entrepreneur

Answer 18

Someone who has ideas and takes risks

Question 19

Ethics

Answer 19

Ideas about what is morally correct in a business

Question 20

Customer

Answer 20

The person that buys the product

Question 21

Consumer

Answer 21

The person that uses the product

Question 22

Customer service

Answer 22

The quality of service that staff must provide for the customers

Question 23

Introduction

Answer 23

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

Question 24

Decline

Answer 24

Nobody buys the products anymore so sales begin to decline

Question 25

Maturity

Answer 25

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

Question 26

Growth

Answer 26

The new product begins to rise ion sales and gain popularity

Question 27

Interest rates

Answer 27

Proportion of the loan that needs to be paid back with added money

Question 28

Price

Answer 28

How much money a product is sold for

Question 29

Boston Matrix:

Answer 29

Cash cows, Stars, Dogs paw, question marks

Question 30

Market map

Answer 30

A map showing where there is a gap in the market

Question 31

Loan

Answer 31

Lump of money borrowed from a loaner such as a bank

Question 32

BLT

Answer 32

Because Leads to Therefore

Question 33

Market research can be found using

Answer 33

``` Internet Primary data Secondary data Books Surveys Loyalty cards Opinions ```

Question 34

Job description

Answer 34

What you’ll be doing if you get the job

Question 35

What can’t a business discriminate against ?

Answer 35

Age Sex Disability Race

Question 36

Sources of finance:

Answer 36

``` Bank Loaner Profit Personal savings Sale of assets Mortgages Investment Interest Grants ```

Question 37

Ways of motivating staff

Answer 37

``` Time and piece rates Empowerment Praise Promotion Bonus ```

Question 38

Motivation

Answer 38

The desire to complete a task and do your best

Question 39

Benefits of motivation

Answer 39

``` Work harder Productivity Less staff turnover Better quality Lower costs ```

Question 40

Limits to motivation

Answer 40

Expensive Time consuming Everyone has something different that motivates them

Question 41

Barriers of communication

Answer 41

Poor explanations Technical jargon Distorted messages Broken equipment

Question 42

Payment methods

Answer 42

``` Time based systems Salaries Result based systems Freelance work Fringe benefits ```

Question 43

Ethics

Answer 43

Ideas about what is morally correct or not

Question 44

Advantages of ethical behaviour

Answer 44

``` Repeat purchase Customer loyalty Better quality Good reputation Low staff turnover Motivated workers Unique selling point Attractive for new customers More profits ```

Question 45

Disadvantages of ethical behaviour

Answer 45

``` Expensive Expensive for customers Have to show that you’re ethical Lower sales No impact on a business ```

Question 46

An example of an unethical and ethical business

Answer 46

Ethical:body shop Unethical: sports direct and nestle

Question 47

Local communities ethical and unethical

Answer 47

Ethical business: provide money and support for the local community Unethical: too much noise or pollution and waste coming from the business so the business doesn’t care about the local community very much

Question 48

Supplier

Answer 48

A business which supplies products to another business

Question 49

Survey

Answer 49

Research involving questions

Question 50

Market segment

Answer 50

Part of a market that contains customers with similar buying habits

Question 51

Product range

Answer 51

A group of similar products made by a business

Question 52

Brand image

Answer 52

The idea that customers have in their minds about a brand

Question 53

Franchise

Answer 53

The right given by a business to another business to use its products

Question 54

Unique selling point

Answer 54

A characteristic of a product that makes it different from other similar products

Question 55

Enterprises

Answer 55

Just means business

Question 56

Risk

Answer 56

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

Question 57

Creative thinking

Answer 57

Coming up with new and unique ideas

Question 58

Invention

Answer 58

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

Question 59

Innovation

Answer 59

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

Question 60

Patent

Answer 60

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

Question 61

Copyright

Answer 61

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