Key terms

Pregunta	Respuesta
Sole Trader	A business owned and run by one person, unlimited liability, keep all profits, difficult to get finance
Partnership	2-20 people, more skills, more expertise, more finance, shared profits, unlimited liability, disagreements
Unlimited liability	If the business is in debt the owner could lose their personal possessions
Franchisee	Where an individual pays for the right to use an established business' brand name and trading format- they receive training, advice, marketing etc.
Marketing Mix	The combination of Price, Product, Place, Promotion- marketing activities to encourage sales
Cash flow forecast	A forecast of future cash inflows and outflows.
Business plan	Sections include: Aims/objectives, finance, marketing, etc. Used to get a bank loan, organise/motivate owner.
Ethical	Doing what is morally right rather than legally enforced.
Social Enterprise	A business whose main aim is to benefit society e.g. Big Issue.
Aims/Objectives	Goals of the business, e.g. Survival, profit, customer satisfaction, growth
Market research	Could be primary or secondary. Used for find out about the needs and wants of customers and the nature of the market
Primary research	Research carried out first hand e.g. questionnaires, interviews, focus groups
Secondary research	Second hand research- internet research, government statistics.
Production methods	Job- one off, individual, bespoke, usually high quality, high price Batch- groups of products- more efficient
Fringe benefits	Non financial benefits to employees- e.g. discounts, free meals, free uniform
Legislation to protect consumers	Products need to be Satisfactory quality, As Described, Fit for purpose, And last for a Reasonable length of Time.
Financial methods of motivation	Bonus, commission, piece rate pay, hourly wage
Limited Liability	If the business is in debt, owners (shareholders) will only lose what they have invested. Only applies to limited companies (private and public)
Stakeholder	Someone with an interest in the business e.g. employee, customer, owner, local community
Efficiency	Maximising outputs whilst minimising inputs
E-commerce	Selling on the internet- worldwide, 24/7, cheaper if business has no retail outlet
Quality control	Checking quality at end of process
Quality assusrance	Checking quality throughout the process
Laws which protect workers	Health and safety, equality act, minimum wage
Niche market	A small, specialised segment of the market, less competitors and can charge a higher price.
Sources of Finance	How the business can access money- e.g. bank loan, owner's own funds, loan from family and friends, overdraft, retaining profits (if they are an established business)
Revenue	Money made from sales- also called turnover, sales income, sales turnover. Calculated by quantity sold x selling price
Profit	Money made after costs have been taken away from revenue. Profit = revenue - total costs
Variable costs	Costs which change directly with output. If the variable costs of producing one sandwich is £1, if the business sells 30 sandwiches, their variable costs are £30.
Fixed costs	Costs which do not change with output. If the business sells 0 sandwiches or 300 sandwiches, their fixed costs will still stay the same. E.g. rent, salaries.
Total costs	Fixed costs + variable costs. You need this calculation to work out profit (revenue - total costs)
Motivation- why is it important?	Good for businesses as motivated workers perform better- they produce more and better quality products
How to improve motivation of workers	Training, recognition and praise, better communication, giving staff more responsibility
Recruitment- How to select the right employee	Interview, skills tests, shortlisting
Advertising a job vacancy	business website, shop window, job centre, recruitment agency
What affects the rate of pay (wage or salary) an employee is offered	Their skills, experience, qualifications.
Why employ part time staff rather than full time?	More flexible, cheaper, can have more staff working at busy times
Why employ full time staff rather than part time?	Could be more motivated (as more job security), more productive, understand their job better
How can a business improve cash flow?	Increase trade credit periods (delay their payments to suppliers), reduce or delay costs e.g. investing in a website, get an overdraft or loan
Help and support available to businesses	Banks- give advice on business plans Charities- e.g. Prince's trust offer advice and grants

Siguiente

Descripción

Resumen del Recurso

Similar

	Creado por Miss Maclachlan hace alrededor de 8 años