BUSS1 Planning A Business - Key Terms (AQA Book)
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sgibbon123 on July 21, 2012
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36 terms
Terms | Definitions |
|---|---|
 Enterprise | the ability to handle uncertainty and deal effectively with change |
| Entrepreneur | someone who starts and runs a business and has responsibility for the risks involved. |
| Opportunity Cost | the cost of an activity expressed in terms of the next best alternative, which has to be given up when making a choice. |
| Government Grants | sums of money given to a business for a specific purpose or project. They often contribute to the costs of a project rather than fund the whole thing. Grants do not usually have to be paid back. |
| Franchise | a franchise is only one of a number of types of business structure |
| Copyright | the protection given to books, plays, films and music |
| Patent | an exclusive right to use or process or produce a product, usually for a fixed period of time, up to 20 years |
| Trademark | a word, image, sound or smell that enables a business to differentiate itself from its competitors |
| Input | something that contributes to the production of a product or service |
| Output | something that occurs as a result of the transformation of business inputs |
| Added Value | the difference in value between the price of the finished product and the cost of materials used |
| Primary Market Research Data | data collected by the entrepreneur, or paid to be collected, which does not already exist |
| Secondary Market Research Data | data already in existence that has been collected specifically for the purposes of the entrepreneur |
| Random Sample | one in which each potential member of a group has an equal chance of being in the sample |
| Quota Sample | this is not random, as not everyone has an equal chance of being in it, and the results cannot be used to predict the behaviour of everyone |
| Stratified Sample | popular with researchers as it has the benefits of being random, thus reducing bias, and is not as expensive or as difficult as a full random sample |
| Quantative Data | data in numerical form, usually collected from larger scale research in order to generate statistically reliable results |
| Qualitative Data | data about opinions, attitudes and feelings. It is usually expressed in terms of why people feel or behave the way the do |
| Local Market | customers are only a short distance away |
| National Market | a geographically dispersed market where customers are spread over a large area |
| Electronic Market | does not have a physical presence, but exists in terms of a virtual presence via the internet |
| Market Segmentation | the technique where the market is broken down into smaller sections with similar characteristics |
| Market Share | the proportion of a total market accounted for by one product or company |
| Market Growth | the measurement of the change in market size, usually expressed as a percentage of its original size |
| Market Size | the measurement of the size of total sales for a whole market, either expressed in terms of the value of sales (in currency) or the volume of sales (in units) |
| Unlimited Liability | a feature of unincorporated businesses where the owners are personally liable for all debts incurred by a business. All sole traders and most partnerships have unlimited liability |
| Limited Liability | a feature of incorporated businesses such as private and public limited companies, which means that the owners' liability is limited to the amount they have invested in the business |
| Separation of Ownership and Control | describes a situation in which the owners (often the shareholders) are not the same people as those controlling the business on a day-to-day basis (often the managers) |
| Overdraft | a temporary arrangement which allows the business to draw out more money than is in its account, up to an agreed limit |
| Loan | a good source of finance for assets such as machinery and equipment and other start-up costs |
| Incorporated | the process of forming a limited liability company. The process involves creating a separate legal identity for the business, and the creation of shares, or equity |
| Venture Capitalist | usually a professional investor, often another company, interested in high growth, high risk businesses, who will invest an amount into a business in return for shares, and an expectation for a high return. Venture capitalists are usually interested in larger investments of £250,000 or more |
| Business Angel | a wealthy, entrepreneurial individual willing to invest in a small, high risk business who expects a high return. The business is likely to have a high growth potential |
| Stakeholder | an individual or group with an interest in a business. Stakeholders include employees, management, shareholders, customers, suppliers and competitors |
| Temporary Employee | one who is employed for a fixed period or periods of time. Often these workers are seasonal workers and may work full or part time. They rarely have the same benefits as permanent employees such as pensions or health insurance. |
| Consultants | businesses or individuals who provide professional advice or services for a fee. Often the advice is on how to make the small business more successful or to deal with a specific problem |
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