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Business Main Definitions

Terms in this set (54)

Asset
An item of value that a business owns e.g machinery or premises
Bank overdraft
A facility offered by a bank that allows an account holder to borrow money at short notice
Biased
unbalanced or inclined to agree with a particular judgement or idea rather than presenting the evidence fairly
Brand loyalty
A customers willingness to buy a product from a particular business rather than from its competitors
business plan
A document that outlines how an entrepreneur is going to set up a new business
competitive advantage
An advantage a business has over its rivals that is unique and sustainable
convenience
A product or service's ability to fit in well with a customer's lifestyle or routine, the ease with which it can be used and/or its easy to reach location
customer base
The clients who buy products/services of a business, a proportion of whom are repeat customers
Demogrpahics
statistical data relating to the population and particular groups within it.
differentiate
Show that a product is different from similar products
E-commerce
Using the internet to carry out business transactions
Enterprise
A person or organisation with the purpose of producing goods and services to meet the needs of customers
E-tailing
Retailing to customers through the internet, such as through an e-commerce website
Exports
The flow of goods and services out of a country into another country
Imports
The flow of goods and services into a country from another country
innovation
changing an existing product or process
interest
The cost of borrowing, or percentage of the amount of money borrowed that must be repaid in addition to the original amount borrowed
Invention
Creating something completely new
Investment
Putting money into a business with the intention of making a profit
Legislation
The laws that a business must comply with
Logistics
The organisation and management of the transport of raw materials and goods
Marketing Mix
Product, price, place, and promotion (4ps of marketing; can be controlled to match the wants of the target demographic)
market research
The process of gathering information about the market and customers' needs and wants in order to help inform business decisions, including product design and marketing
market share
The proportion of sales in a market that are taken by one business
Multinational
a business with operations or production bases in more than one country
Obsolete
out-of-date, no longer in use
Partnership
A business that is owned by a group of two or more people who share the financial risk, the decision-making and the profits
Pressure group
A group of people who join together to try to influence government policy or business policy for a particular cause
Price point
The point on scale of possible prices at which a business fixes the price of its product
Private Limited Company (Ltd)
an incorporated business owned by two or more shareholders who invest in the business in return for a share of the profits and voting rights at the general meeting
profit
The amount of revenue left over once costs have been deducted
Profit margin
The proportion of revenue left over after costs have been deducted
Public limited company
An incorporated business that can sell shares to the public
Qualitative
Concerning the quality or amount of something that can be measured in numbers
Reasonable care
Taking enough care to ensure that a product or service is suitable for customers, such as providing a meal that can be eaten
Redundancy procedures
The process through which a business stops employing some of its staff because their roles are no longer needed
repeat purchases
Products or services that are repeatedly purchased by the same group of customers
Retailing
Selling products or services to customers in a physical shop
Retained profit
Money that a business keeps rather than paying out to its shareholders
Revenue
The money that comes into the business from sales
Reward
The money that an entrepreneur or investor receives when a business succeeds
Risk
The possibility that an enterprise will have lower than anticipated profits or experience loss
Roles
Different jobs within a buisness
Share capital
Money that is raised by a business issuing shares that it then sells to those who wish to invest in the company
Shareholders
Investors who are part-owners of a company
Social media
Websites that allow users to interact with other users, by sharing text based messages, pictures or links to online content
Used a lot in marketing
Sole trader
A type of unincorporated business that is owned by just one person
Span of control
The number of employees that are managed by a manager (e.g if a person manages 5 employees their span of control is 5)
Start up
A new business usually with only a small number of employees - perhaps one
Stock
The products held by a business in a shop or a warehouse, usually for sale to customers
stock exchange
A place where shakes in PLCs can be bought
Trade credit
Credit arrangement that is offered only to a business by suppliers
Unique selling point
Something that makes a product or service stand out from its competitors
Venture capital
Money gang a business sources from individuals or groups of people who wish to invest their own money into a new business
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