Business: An organisation whos purpose is to produce goods and services to meet the needs of customers.
Supplier: A business that sells (supplies) products to another business.
Production: Using raw materials, labour and materials to make products.
Customer: A person or organisation that buys the product or service.
Consumer: The person that uses (consumes) the product.
Primary research: is collecting information that did not exist before.
Secondary research: is the process of gathering secondary data, information that already exists.
Qualitive data: Information about opinions, judgements and attitudes.
Quantitative data: Data that can be expressed as numbers and statistically analysed.
Market segments: Is a group of buyers with similar characteristics and buying habits.
Branding: Is a named product that customers see as being different from other products and that they can associate or identify with.
Added value: Is the increased worth that a business creates for the product.
Franchise: Is the right given by one business to other to sell goods or services using its name.
Franchisor: The business that gives franchisees the right to sell its product or service.
Franchisee: A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor.
Entrepreneur: A person who owns and runs their own business and takes risks.
Enterprise: The initial spark and idea for business and the willingness by an individual to show initiative take a risk and undertake a new venture.
Enterprises: Another word used for businesses.
Deliberate creativity: Is the intentional creational of new ideas through recognised and accepted techniques.
Blue skies thinking: Is coming up with as many ideas as possible to solve a problem.
Lateral thinking: Involves thinking differently to try to find new and unexpected ideas.
Invention: Coming up with a product.
Innovation: Bringing a product to the market.
Patents: Right of ownership of an invention, design or process when it is registered with the government.
Copyright: Legal ownership of material such as books, music and films which prevent these being copied by others.
Trademarks: The logo, symbol, sign or other features of a product or business that cannot be copied by others.
Planning: Identifying a direction and plan of action for the business.
Drive: Being hardworking and motivated to achieve success.
Thinking ahead- Having the foresight to identify potential problems.
Seeing Opportunities: Having the creativity and imagination to do things differently.
Profit: Occurs when revenues of a business are greater than its total costs.
Revenue: Money going in to the business.
Costs: Money going out of the business.
Cash flow: Is the money flowing into and out of a business on a day to day basis.
Business Plan: Is a plan for the development of a business.
Customer focused: Understanding customers and focusing on their needs is a vital if a business intends to attract people to buy their products.
Unlimited Liability: The owner is legally responsible for any debts of the business.
Limited Liability: The owners and the business are seperate legal entities.
Customer satisfaction: Is a measure of how much a business or its products meet customers expectations.
Supply: Is the amount that sellers are willing and able to sell at any given price.
Demand: Is the amount that buyers are willing and able to purchase.
Market: Is where buyers and sellers meet to exchange products and services.
Commodity markets: Markets for raw materials such as oil used in the production of other goods.
Goods markets: Are markets for everyday products such as clothes.
Interest rate: Is the percentage reward or payment over a period of time that is given to savers on savings or paid by borrowers on loan.
Exchange rate: Is the price of buying foreign currency.
Stakeholder: An individual or a group that has an interest in and is affected by the activities of a business.
Market research: Gathering information about customers, competitors and market trends by collecting primary and secondary data.
Product trial: When consumers buy a product for the first time to access whether or not they want to buy it again.
Product differentiation: About making a product different from others in some way.
Function: This is about how well a product does what it is meant to.
Just in Time stock control: Where stock is delivered only when it is needed by the production system and so no stock is kept by a business.
Just in Case stock control: Involves having a backup of stock at all times.
Quality Control: Seen as one part of the chain of production.
Quality Assurance: Involves focusing on quality at every stage of the production process.
Productivity: Is output per worker.
Margin of Safety: Amount of output between the actual level of output where profit is being made and the break even level of output.
Remuneration: Is the payments system adopted by a business to pay and reward employees.
Trade-Off: Is when something is given up in order to gain or achieve something else.
Pressure Groups: Are organisations that try to get businesses to change what they are doing.

	Created by sian.allison almost 11 years ago

GCSE Business Note on Equations and Definitions, created by sian.allison on 09/02/2014.

Equations and Definitions