Unit 1: Setting Up A Business Flashcards
An activity that requires the organisation of resources to achieve a reward, whilst running a risk
An individual with an idea or business
Gap in the market
A business opportunity that is either a completely new idea or adds something different to an existing product or service.
The legal right to use the name and logo of an existing firm and sell the same products.
A stated target for the future. For example, a new business may have the aim to survive its first year of trading.
A clearly defined target for a business to achieve over a certain period of time.
An increase in turnover(sales), market share or profit.
What is left after costs have been deducted from revenue.
Profit made as a proportion of sales revenue.
The amount sold or the value sold.
The proportion of total market sales sold by one business.
How happy the customer is with the product or service.
The moral questions on which decisions are made and the impact the business has on its internal and external environment.
The value of sales made during the trading period, also called revenue.
An individual or group with an interest in a business, such as employees, customers, managers, shareholders, suppliers, competitors and the local community.
A statement showing how a business sets out to achieve its aims and objectives.
The capital provided for the various stages of business growth by different sources of finance, either on a short- or long-term basis.
A technique where the business attempts to estimate future sales, or other financial variables.
The potential for loss but rewards in business make it a calculated gamble.
Not knowing the future, or what is going to happen.
The most common form of business organisation, often just one person
The simplest way two or more people can be in business together where partners are jointly and personally responsible for debts.
Unincorporated businesses, such as sole traders and partnerships, have unlimited liability, which means that the owners are responsible for all the business’s debts.
The process of forming limited liability company such as a private limited company or PLC.
Investors (shareholders) in a limited company can only lose their investment in the business if it fails; they cannot be forced to sell assets to pay off the firm’s debts.
In relation to business location, this refers to the use of e-technology, such as the Internet and email, to create a virtual market between the business and the consumer.
The process of buying, managing and delivering goods, from the point of manufacture to the end customer.
Research that enables a firm to find out about its market, its customers and its potential customers
Gathering new information specifically for the purpose identified by the business
Research that uses information that has already been gathered for another purpose
A set of questions designed to discover information relating to a product or service. These may be left for consumers to complete themselves, carried out by using face-to-face interviews by researchers or from the basis of a telephone or postal survey
Using information that has already been published on the internet to gather information about the market for a firm’s products or services
A series of set questions delivered over the telephone to consumers as a method of primary research
Gathering information from companies that supply products or services on their forecasts for what is likely to happen in the market in the future
Formal or informal responses from customers to the product or service offered by a business
In-depth discussion with a small group of consumers (8-10), which probes their feelings towards a product or service.
The 4 major variables for which decisions must be made when marketing a product
The service or physical good being sold by the company
The amount charged by a business for its product or service
All the ways a business communicates to consumers with the aim of selling products.
The methods used by a firm to sell its products or services to consumers
The collective term given to all the products made or sold by a business
Attempting to make your products stand out from those of your rivals through advertising, design or different product features
The quantity that consumers are willing and able to buy at the current price level