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21 Cards in this Set
- Front
- Back
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Franchise
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When a business (franchisor) gives another business (the franchisee) the right to supply its product or service.
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Copyright
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Legal protection against copying for authors, composers and artists.
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Patent
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An official document granting the holder sole right to use or produce a new invention for a given period of time (usually 20 years).
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Value added
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Sale price minus the cost of bought in materials
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Business plan
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A report describing the marketing strategy, operational issues and financial implications of a business start-up.
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Market research
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The systematic and objective collection, analysis and evaluation of data used to aid the marketing process.
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Market segmentation
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The classification of customers or potential customers into groups or sub groups (market segments), each of which respond to marketing approaches differently.
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Segmentation analysis
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When a firm uses quantitative and qualitative data or information to try to find out what kind of consumer buys their product and why.
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What is the calculation for market share
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Sales of one product or brand or company / total sales in the market x 100
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Unlimited liability
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A situation where the owners of a business are liable for any debts that may occur.
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Limited liability
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A situation where the owners of a business are in no way liable for any debts that may occur.
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Public limited company
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A limited liability company which can sell shares to the general public via floating on the stock market. It has to have share capital of over 50,000, at least two directors and a qualified company secretary. Usually it has PLC after its name.
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Stakeholders
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Any group of individuals with an interest in a business (inc. local community, employees, shareholders, suppliers)
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Ordinary share capital
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Money gives to companies in return for a share certificate that gives them part ownership in a company and a share of the profits.
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Least-cost site
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The business location that allows a firm to minimise its costs (and hence its selling price).
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Fixed costs
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Costs that do not vary with output in the short run.
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Variable costs
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Costs that do vary with output in the short run.
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Contribution per unit
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Selling price - variable cost per unit = contribution per unit
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Total contribution
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The difference between total revenue and total variable costs.
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How do you calculate break even output?
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breakeven output = fixed costs / contribution per unit
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Cash flow forecasting
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The process of estimating the total cash inflows and outflows of a business over a period of time. Due to the usual seasonal nature of business it is usually measured over a year.
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