bus

• share capital


  the money invested in a company by the shareholders.(long-term)
• trade credit 


  This source of finance allows a business to obtain raw materials and stock but pay for them at a later date ( short-term)
• venture capital 


  money invested by an individual or group that is funding a new business in exchange for a share of the profits (long-term)
• market segmentation 


  putting the target market into dif groups based on location, age,gender,income
• business plan 


  highlights its aims and objectives + how they are going to set up the business, all aspects
• marketing mix

  product, price,place, promotion - attract customers + customer needs
• entrepreneur role

  • organising resources + making decisions + leadership
• market map

  diagram -positions in the market

  
• cashflow forecast

  prediction of how much cash will flow out the business
• overdraft 


  bank allows you to spend more than you have - paid back w interest (short-term)
• crowd funding 


  lots of people put in a small amount of money (long-term)
• limited liability 


  only lose the money invested - separate from personal assets (limited to what they can give)
• unlimited liability

  company and personal assets are one - has to give personal assets if they go bankrupt
• sole trader

  business run by one person, who has unlimited liability
• private limited company (LTD)


  a business owned by shareholders + directors , that has limited liability
• public limited companies (PLC)


  sell shares on the stock exchange
• dividents

  a % of the business profit that are given to the shareholders
• tariffs

  a tax placed on imported goods
• trading bloc


  a group of countries that allow free trade between themselves (EU)
• stakeholders

  anyone who has an interest in the company
• design mix

  features a business considers when making a product- function,cost,aesthetics
• skimming

  setting an initial high price to maximise profit
• penetration pricing 


  setting an initial low price to attract customers - than raising it
• competition pricing

  similar price to competitors
• cost-plus pricing

  the total cost of the product then profit is added
• loss leader

  selling a product at a extreme low price
• span of control

  n. of workers who report directly to a manager
• tall structure + flat structure

  
• centralised organisation

  all decisions are made at the head office
• decentralised organisation

  branch managers are given the power to make decisions - make decisions that meet local needs
• directors

  overall responsibility for managing the company's business activities
• senior managers

  allocate jobs to managers - coordinate the overall business
• team leader

  responsible for making sure shop floor workers are doing their job
• operational staff


  do day to day tasks
• support staff

  carry out a specific role that supports the business ex. cleaning