KEY TERMS theme 1

• What does "adapting existing products" mean?

  Finding new products based on the original one
• What is an aim in business?

  An overall or long-term target
• How do aims and objectives differ?

  Aims are long-term, objectives are measurable goals
• What is an asset?

  Any item of value owned by a business
• What is branding?

  The process of creating a distinct identity for a product
• What does "break-even level of output" refer to?

  The point where revenue meets all costs
• What are business decisions?

  Choices made by a business within a short time
• What is business failure (insolvency)?

  The collapse of a business leading to closure
• What is a business plan?

  A detailed document for a proposed new business
• What is a cash flow forecast?

  Estimating cash inflows and outflows over time
• What is cash flow?

  The money coming in and out of a business
• What is competition in business?

  The rivalry between businesses selling products
• What is competitive advantage?

  A feature that helps a business succeed
• What does competitive environment refer to?

  The strength of competition in the market
• Who is a consumer?

  The person who uses a product
• What is consumer income?

  The amount available to spend after taxes
• What is consumer law?

  Acts protecting customers from misleading practices
• What are consumer rights?

  Laws empowering consumers to demand standards
• What does convenience mean in business?

  The ability of a product to fit a customer's lifestyle
• What is crowd funding?

  Raising capital online from many small investors
• What are customer needs?

  Requirements when purchasing a product
• What is data in business?

  Information, particularly statistics, for analysis
• What are demographics?

  Characteristics of a population like age and gender
• What is digital communication?

  Messages conducted via email, text, or social media
• What is discrimination in business?

  Treating someone differently due to characteristics
• What does the dynamic nature of business mean?

  Business is ever-changing due to external factors
• What is e-commerce?

  Using the internet for business transactions
• What is the economic climate?

  Measurement of economic activity within a country
• What is the economy?

  The system by which money is produced
• What is enterprise?

  Entrepreneurial activity or a business
• Who is an entrepreneur?

  A person who sets up a business
• What are ethics in business?

  Moral principles guiding behavior in business
• What is an exchange rate?

  The value of one currency in terms of another
• What are exports?

  Goods sold to other countries
• What are fixed costs?

  Costs that do not change with output
• What is a focus group?

  A group discussion for qualitative consumer insights
• What is a franchise?

  The right to sell goods using another's name
• What is franchising?

  Paying for the right to use a business name
• What is globalization?

  Businesses operating on an international scale
• What are goods?

  Physical products a consumer can buy