Business

Pregunta	Respuesta
Business Unit 1	By Sophie
Primary research	Collecting data that did not exist before. E.g collecting data
Secondary research	Collecting data that already exists E.g internet research
Pros of primary research	More accurate Up to date Specific to needs Effective at collecting qualitative data Direct customer contact
Pros of secondary research	More general Less time-consuming Effective at collecting quantitative data
Quantitative data	Data that is in numerical form.
Qualitative data	Data that is opinions and views.
Market research	Researching the market.
Market segment	A group of buyers with similar characteristics and buying habits. E.g gender, age
Market segmentation	This allows a business to: Meet specific customer needs Differentiate their products Develop a unique brand image Target marking activity
Market mapping	A diagram can be used to position and compare products in a market, and identify opportunities where customer needs are not being met.
Gap in the market	Where there is a demand for a good or service that is not currently being met by any businesses.
Added value	It is the difference between what a business pays its supplier and the price that it is able to change for the product.
Give examples of way to add value	Improve quality Better design Branding More convenience USP
Importance of added value	The higher the added value of a product, the soon costs can be paired off and the quicker a business will make profit.
Unique selling point (USP)	Another way to add value to a product.
Franchise	The right given by one business to other businesses 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.
Benefits of starting a franchise?	An established brand name Training Equipment Ongoing support Advertising and promotion
Drawbacks of a franchise	Start-up cost can be expensive Royalty payment Complicated application process Lack of autonomy and control Limited flexibility to make your own decisions
Entrepreneur	A person who owns and runs their own business and takes risks.
Enterprise	The initial idea for a business and the willingness by an individual to show initiative.
Enterprises	Another word used for businesses
What are enterprise skills	Risk-taking Showing initiative Willingness to undertake a new venture
Blue sky thinking	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.
Patent	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.
Trademark	The logo, sign or other feature of a product or businesses that cannot be copied by others.
Calculated risk	Putting a numerical value or probability on a risk and the likely hood of it coming true.
Revenue / Turnover	Is the amount of income received from selling goods or services over a period of time. Total revenue = Price + Quantity
Fixed cost	Costs that do not vary with the output produced by a business e.g salaries
Variable cost	Cost that change directly with the number of products made. Eg. raw materials. Variable cost = Cost of one unit x Quantity produce
Profit	When revenues of a business are greater than its total cost.
Loss	If a business's cost are greater than its revenues then it will make a loss.
Cash flow	Is the money flowing into and out of a business on a day-to-day basis.
Cash-Flow Forecast	It predicts how the cash will flow through a business over time.
Cash-Flow problem	When the business does not have enough money flowing into the business to pay its day-to-day bills.
Net cash flow	The receipts of a business minus its payment, either positive or negative.
Insolvent	Without sufficient cash within the business.
Business plan	Is a plan for the development of the business, giving forecast of items such as sales, cost and cash flow.
Shares	Is part ownership in a business
Liability	The legal responsibility of a business towards its debts
Unlimited liability	The owner is legally responsible for any debts. They close lose his or hers personal belongings.
Limited Libility	The owners and the business are separate legal entities. They can only lose the amount that they have invested.
Interest Rate	Is the percentage reward or payment over a period of time that is given to savers or paid by borrowers on loans

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	Creado por Sophie Weldon hace alrededor de 8 años