Theme 1.5 Flashcards Preview

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Flashcards in Theme 1.5 Deck (30):
1

Geographical mapping

Plotting on a map the locations of all the existing businesses in your market, in order to show where all your competitors are

2

Innovations

New ideas brought to the market

3

Line manager

A manager responsible for meeting specific business targets and responsible for specific staff

4

Market map

A grid plotting where each existing brand sits on scales based on two important features of a market

5

Market niche

A gap in the market-no one else is offering what you offer

6

Crowd funding

Obtaining external finance from many, individual, small investments

7

Entrepreneur

Someone who makes a business idea happen, either through their own effort or by organising others to do the work

8

Piece rate

Paying workers per piece they produce

9

Budgets

An agreed ceiling on the monthly spending by any department or manager

10

Corporate objectives

Targets for the whole business, such as profits to rise by 20%ba year for the next three years

11

Delegation

Passing authority down the hierarchy, to allow more junior employees some decision making power

12

Mission

A business aim expressed to make it seem especially purposeful and motivating

13

Mission statement

A short, powerfully expressed sentence or two that explains the business aims clearly yet motivationally

14

Objectives

Targets precise enough to allow praise or blame for the person in charge

15

Shareholder value

The mix of shareholder dividends and a rising share price that stem from high and rising profits

16

Staff retention

Keeping staff usually measured as staff still remaining at the end of the year as a percentage of the total workforce

17

Strategy

A medium to long term plan for meeting your objectives

18

Bankrupt

When an individual is unable to meet personal liabilities, some or all of which can be a consequence of business activities

19

Creditors

Those owed money by a business

20

Franchise

An independent business that has bought the rights to use a better known firm's logos and trading practices within a specified area

21

Incorporation

Establishing a business as a separate legal entity from its owners, and therefore giving the owners limited liability

22

Limited liability

Owners are not liable for the debts of the business; they can lose no more than the sum they invested

23

Registrar of Companies

The government department which can allow firms to become incorporated

24

Sole trader

A one person business with unlimited liability

25

Unlimited liability

Owners are liable for any debts incurred by the business

26

Opportunity cost

The cost of missing out on the next best alternative when making a decision

27

Trade off

Accepting less of one thing to achieve more of another

28

Liquidity

The ability of a business to pay its bills on time, which all depends upon having enough cash in the bank

29

Overtrading

When a business expands at a rate that cannot be sustained by its capital base

30

Franchise

A business that sells the rights to the use of its name and trading methods to local businesses