Unit 1 business

• Added value


  the difference between the cost of purchasing raw materials and the price the finished goods are sold for
• Aims


  Long-term plans of the business from which its corporate objectives are derived
• B2B (Business to Business)


  the process of selling merchandise or services from one business to another
• Cash flow


  the difference between cash coming in and cash going out of a business
• Costs


  The expenses involved with manufacturing, promoting, and distributing a product
• Functional objectives


  Set for each major business function (finance, marketing, operations, Human Resources) - designed to ensure that the corporate objectives are met
• Good


  a physical item that is produced and can be weighed or measured
• Objectives


  Specific, short-term statements detailing how to achieve the organization's goals.
• Profit


  A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something
• Semi-variable costs


  costs that have both a fixed and a variable cost element
• Stakeholders


  the people whose interests are affected by an organization's activities
• Total costs


  the sum of the fixed and variable costs for any given level of production
• Total variable costs


  Variable cost per unit x number of units sold
• USP


  unique selling point
• Company


  A business which has been registered with Companies House and has its own legal identity. Its owners have limited liability. Can either be Ltd or Plc.
• Dividend


  A share of the profit paid to the shareholder as a reward for their investment.
• Incorporated business


  A business model in which the business and the owner(s) have separate legal identities
• Limited liability


  the liability of a firm's owners for no more than the capital they have invested in the firm
• Private limited company


  A business registered with Companies House. It can be owned by one or more shareholders who have limited liability. Shares can only be bought and sold privately (the shareholders have a 'say' as to whom can invest in the business). It has Ltd after its names.
• Privatisation


  A transfer of ownership of the public sector (the government) to the private sector (the private owners).
• Public sector


  When the state sells businesses that it has previously owned and managed to private individuals and businesses eg. Royal Mail
• Share price


  The price of a single share in a company; share prices are usually determined by the supply and demand for shares
• Social enterprise


  A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners
• Takeover


  When one company acquires control of another by buying more than 50% of its share capital
• Competition


  The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, place and promotion
• Demand


  the quantity of a good or service that consumers are willing and able to buy
• Demographics


  Characteristics of human population groups including migration trends, birth and death rates, trends in age, ethnicity and gender, levels of education. marital status and size of family
• Ethics


  Moral principles which should underpin business decisions and actions
• External environment


  Those external forces (eg.competition, consumers incomes, market conditions) that can influence a business's activities
• Fair Trade


  A social movement that exists to promote improved trading terms and living conditions for producers of products in less-developed countries.
• Interest rates


  The cost of borrowing money and the return for saving.
• Market conditions


  Refers to number of features of a market such as the level of sales, the rate at which they are changing and the number and strength of competitors
• PESTLE analysis


  Analysis of the external political, economic, social, technological, legal and environmental factors affecting a business
• Real incomes


  Incomes that are adjusted for the rate of inflation (or increase in prices) to show changes in purchasing power