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Flashcards in Business Ownerships Deck (59)
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1

Supplier 

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

2

customer

any customer or organisation which buys or is supplied with a product or by a business

3

Consumer

The person who ultimately uses (or consumes) a product.

4

Customer Needs

Value for money Disability access Good quality Safe environment

5

Primary (or field) research

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

6

Research involving asking questions of people or organisations.

Survey

7

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

Respondents

8

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

Questionnaire

9

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

Focus group

10

Secondary (or desk)

research

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

11

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

Qualitative data

12

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

Quantitative data

13

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

Market segment

14

Price sensitive

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

15

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.

Market Map (Perceptual

Map or Positioning Map)

16

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

Gap in the market

17

Product range

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

18

Brand

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

19

Added Value

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.

20

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

Unique selling point or

USP

21

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

Franchise

22

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

Franchisee

23

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

Franchisor

24

Entrepreneur

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

25

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

Enterprise

26

Goods

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

27

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

Services

28

Competitive Advantage

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

29

Thinking differently to try and find new and unexpected ideas.

Lateral Thinking

30

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

Blue Skies Thinking

31

Invention

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

32

Innovation

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

33

Patent

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

34

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

Copyright

35

Trademarks

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

36

Calculated Risk

The probability of a negative event occurring.

37

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

Financial Objectives

38

Specific, measurable, achievable, realistic and timed

SMART

39

Revenues

Sales Revenue

Turnover

Sales Turnover

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

40

TR = P x Q Total Revenue = Price x Quantity

Total Revenue

41

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

Sales volume

42

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

Fixed costs

43

Total Costs

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

44

Variable Costs

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

45

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

Profit

46

Cash Flow

The flow of cash into and out of a business

47

The cash flowing into a business, its receipts

Inflow

48

Outflow

The cash flowing out of a business, its payments

49

Net Cash Flow

The receipts of a business minus its payments Inflows – Outflows = Net Cash Flow

50

Insolvency

When a business can no longer pay its debts.

51

Cash Flow Forecast

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

52

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

Opening Balance

53

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

Closing Balance

54

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

Trade Credit

55

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.

Stocks

56

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

Long term finance

57

Short term finance

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

58

Personal Savings

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

59

Share Capital

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