Business Unit 1

Front 1

franchise

Back 1

the legal right to use the name and logo of an exsiting firm and sell the same products

Front 2

market share

Back 2

the proportion of total market sales sold by one business

Front 3

turnover

Back 3

the value of sales made during a trading period, also known as revenue

Front 4

stakeholder

Back 4

an individual or group with an interest in a business, such as employees, customer, managers, shareholder, suppliers, competitors and the local community

Front 5

forecast

Back 5

where the business attempts to estimate future sales, or other financial variables

Front 6

unlimited liability

Back 6

unincorporated businesses, such as sole traders and partnerships, have unlimited liability, which means that the owners are responsible for all the businesses debts

Front 7

incorporation

Back 7

the process of forming a limited liability company such as a private limited company or plc

Front 8

limited liability

Back 8

shareholders in a limited company can lose their investment in the business if it fails; they cannot be forced to sell assets to pay off the firm's debts

Front 9

primary research

Back 9

gathering new information specifically for the purpose identified by the business

Front 10

secondary research

Back 10

research that uses information that has already been gathered for another purpose

Front 11

marketing mix

Back 11

the four major variables for which decisions must be made when marketing a product

Front 12

product

Back 12

the service or physical good being sold by the company

Front 13

price

Back 13

the amount charged by a business for its product or service

Front 14

promotion

Back 14

all the ways a business communicates to consumers with the aim of selling products

Front 15

price

Back 15

the amount charged by a business for its product or service

Front 16

place

Back 16

the methods used by a firm to sell its products or services to consumers

Front 17

channel of distribution

Back 17

the method used to transfer goods or services from the producer to the final consumer

Front 18

e-commerce

Back 18

transactions between people and business carried out entirely via the internet

Front 19

bank loan

Back 19

finance provided by the bank that will be paid back over a set period

Front 20

over drafts

Back 20

a flexible arrangement that allows a business to spend more money than it has in its bank account, as ad when its needs the finance

Front 21

trade credit

Back 21

suppliers who allow debts for goods and services to be paid one or two months after delivery

Front 22

job production

Back 22

making one-off specialised products for each customer

Front 23

batch production

Back 23

groups of identical items that pass through different stages of the production process at the same time

Front 24

Horizontal integration

Back 24

when two companies at the same stage of the production process merge or take over each other.

Front 25

Vertical integration

Back 25

occurs when firms at different stages of the production process merge together. There are two types called:

Forward vertical integration

Backward vertical integration

Front 26

Outsourcing

Back 26

when a company hires another business to do some work for them. Many firms outsource cleaning or IT operations to smaller, more specialist companies.