Buss 1 Key Words

Front 1

Adding Value

Back 1

A process through which a business increases the worth of the resources included in production so that customers perceive the product to be worth more than the cost of inputs.

Front 2

Adviser

Back 2

An external contract of a business that provides support and advice, sometimes for free.

Front 3

Bank Loan

Back 3

A fixed amount loan from a bank which is generally used to finance long-term assets.

Front 4

Bank Overdraft

Back 4

Borrowings from a bank on a current account which are payable on demand.

Front 5

Breakeven Output (or Point)

Back 5

The point at which the total sales of a business equal costs - i.e. the business is making neither profit nor loss.

Front 6

Budget

Back 6

A detailed plan of income and expenses expected over a certain period of time.

Front 7

Business Angel

Back 7

A particular type of investor, usually a successful entrepreneur, who is willing to invest in high-risk, high-growth firms as a very early stage.

Front 8

Business Plan

Back 8

A detailed description of a new or existing business, including the company's strategy, aims and objectives, marketing and financial plan.

Front 9

Business Objective

Back 9

A stated goal or target of a business (can have more than one).

Front 10

Cash Flow

Back 10

The movements of cash into (inflows) and out of (outflows) a business.

Front 11

Cash Flow Forcast

Back 11

A projection, usually by week or month, of the likely cash inflows and outflows in a business.

Front 12

Contribution

Back 12

The difference between total sales and total variable costs.

Front 13

Contribution per Unit

Back 13

A key number for break even analysis: the difference between selling price per unit and variable cost per unit.

Front 14

Costs

Back 14

Amounts incurred by a business as a result of its trading operations.

Front 15

Demand

Back 15

The amount of a product or service that customers are willing and able to pay at a given.

Front 16

Demographic

Back 16

Defining a market in terms of social-economic factors such as segmentation age, income, class etc.

Front 17

Elasticity of Demand

Back 17

The responsiveness of demand to a change in price or incomes.

Front 18

Electronic Market

Back 18

A market in which buyers and sellers are brought together using digital means of communication (e.g. online) in order to exchange information (e.g.prices)and conduct transactions. Compare with physical markets where buyers and sellers meet face to face.

Front 19

Enterprise

Back 19

The process by which new businesses are formed in order to offer products and services in a market.

Front 20

Entrepreneur

Back 20

An individual who sets up and runs a new business and takes on the risks associated with the business.

Front 21

Expenditure Budget

Back 21

The budget which sets out the expected costs to be incurred by the firm, usually split into various categories (e.g. production, marketing, administration).

Front 22

Fixed Costs

Back 22

Costs that do not vary with the level of output (e.g. rent, salaries) Franchisee , the person or company which operates a franchised business format - under licence from a franchiser.

Front 23

Franchisor

Back 23

The owner of a business format (franchise) which is licensed out to other people or business (franchisees).

Front 24

Full-time Employee

Back 24

An employees who works more than 30 hours a week in a business (compare with part-time, which is working for less than 30 hours).

Front 25

Income Budget

Back 25

The budget which set out estimate of the likely demand for and value of the firms sales.

Front 26

Inputs

Back 26

The resources (land, labour, capital, enterprise) that go into producing goods and services.

Front 27

Limited Liability

Back 27

Shareholders are only liable for the money they have invested - not for the overall debts and liabilities of their company.

Front 28

Location

Back 28

The place (or places) from which a firm does business. Can be both a physical location and also virtual.

Front 29

Margin of Safety

Back 29

The difference between the actual level of output and the break even output.

Front 30

Market

Back 30

Any place (e.g. physical, electronic) where buyers and sellers come together with a view to exchanging transactions.

Front 31

Market Growth

Back 31

The % growth in the size of the market, measures over a specific period.

Front 32

Market Segmentation

Back 32

The process of planning, collecting, and analysing data relevant to help make marketing decisions.

Front 33

Market Share

Back 33

The share of the total market that is owned by particular business, product or brand. Usually expressed in % terms. The firm with the largest % market share is known as a market leader.

Front 34

Market Size

Back 34

The total value or quantity of demand in a specific market over a specific period of time. Can be measured in value terms (e.g. sale) or in terms of quantities (e.g. units) brought or sold.

Front 35

Niche Market

Back 35

A smaller part of larger market in which customers have more specific needs and wants.

Front 36

Opportunity Costs

Back 36

The costs of a decision as measured by the benefits foregone of the next best alternative.

Front 37

Patent

Back 37

The right to be the only user of the producer of a specified product or process.

Front 38

Permanent Employee

Back 38

An employee who is employed on a formal employment contract and remains with the firm for an open-ended period until the contract is ended. Compare with a temporary employee (temp) who is employed for shorter, time-limited period.

Front 39

Primary Research

Back 39

The market research that involved the collection of data that does not yet exist.

Front 40

Profit

Back 40

The difference between total sales and total costs.

Front 41

Qualitative Research

Back 41

Market research concerned with collecting data on attitudes, opinions, beliefs, intentions etc.

Front 42

Quantitative Research

Back 42

Market research concerned collecting data that can be quantifies - e.g. sales statistics.

(numbers)

Front 43

Return

Back 43

The rewards to enterprise - e.g. profit, satisfaction.

Front 44

Revenue

Back 44

The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.

Front 45

Risk

Back 45

The probability or chance that hoped-for outcomes will not occur.

Front 46

Sample

Back 46

In market research, a sample is a subset of a population. Sampling is the process of taking and analysing a research sample.

Front 47

Share Capital

Back 47

The finance invested in a business (limited company) by the shareholders - part of the equity capital of a firm.

Front 48

Social Enterprise

Back 48

A business that has objectives other than making profit. Part of a group of organisations in the 'not-the-profit' sector.

Front 49

Sole Trader

Back 49

A one-person business with unlimited liability for the the debts of that business.

Front 50

Supplier

Back 50

A business that provides goods and services to other firms.

Front 51

Total Costs

Back 51

The total of variable and fixed costs in a business.

Front 52

Trade Credit

Back 52

Amounts owned to suppliers of a business - a source of finance.

Front 53

Trademark

Back 53

A word, symbol, or phrase used to identify a particular company's product and differentiate it from other companies' product.

Front 54

Unlimited Liability

Back 54

Unlimited liability describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business.

Front 55

Unique Selling Point (USP)

Back 55

A feature of a product or service that makes it stand out compared with the competition.

Front 56

Variable Costs

Back 56

Costs that vary directly in proportion to output (e.g. material, pay related to amounts produced or sold).

Front 57

Venture Capital

Back 57

Investment made by specialist funds to finance the launch, early development or expansion of a private company.

Front 58

Working Capital

Back 58

The amount of money that a business has a available to conduct day-to-day activities.