BUSINESS- key terms

• Asset?


  Something the business owns; it has a value
• Brand image?


  consumers perception of the brand. its character, qualities including shortcomings.

  developed over time and is a consistent theme through advertising
• business plan?


  detailed statement of how the business intends to operate

  can be at start up or during a given time

  based on forecasts so only cover a short time
• Cash?


  money the business has in cash or at the bank
• Competition?


  rivalry between businesses selling goods/services in the same market
• Consumer spending?


  money spent by households on goods and services to satisfy needs and wants
• Customer?


  individuals/businesses/organisations that purchase goods or services and make decisions around which supplier to choose
• demand?


  quantity of a particular product that will be bought at a particular price over a specific time
• directors?


  people elected by shareholders to run the business on their behalf
• E-commerce?


  business transactions carried out electronically on the internet
• employees?


  individuals who work full time/part time for the business

  have a contract of employment detailing their duties and rights
• Enterprise?


  ability to identify business ideas/ opportunities and bright them to fruition and take risks where appropriate
• entrepreneur?


  person who has the vision/ initiative to make business ideas happen (managing the resources and risks)
• Gap in the market?

  opportunity for a new business (may meet a need that is not being met or potential customers not yet purchasing a good/service)
• Gloabisation?


  trend for large businesses to operate on a worldwide scale

  (money, goods and services transferred across national boarders)
• Goods?


  items produced from raw materials for sale to businesses/consumers
• Market?


  where those wishing to buy goods/services make contact with those selling them
• M-commerce?


  business transactions carried out electronically by mobile phone
• Needs?


  human wants essential to survival (clothing,food,water,warmth)
• Not-for-profit organisations?


  associations/charities set up to further non-monetary ideals such as cultural/educational/religious/public service

  (profit losses are retained/ absorbed)
• Owners?


  individuals who own the business or a share

  have rights to decision making and profits
• PR?


  managing relations with groups (consumers/media/investors)

  aim to generate interest
• Profit?


  Difference between money received from a sale of a good/service and amount it cost

  total revenues- total cost

  (Amount that remains after all costs paid)
• Revenue/ turnover?


  income generated from sale of goods/services
• retailer?


  business/person that sells good to the consumer
• risk?


  possibility the return on an investment will be lower than expected
• service?


  action carried out to fulfil a demand (in return for payment)
• shareholder?


  PART OWNER/ people who own shares in a limited company
• stakeholders?

  people interested in the way a business operates
• supply chain?


  network of organisations/people/activities that take product/service from supplier ————>consumer
• Unique selling point?


  key benefit of a good/service

  the focus of advertising and promotion
• wage?


  method of paying employees for their work

  could be based on hourly, weekly or piece of work

  paid weekly or monthly
• Wants?


  things people would like to have NOT limited to the things they need ti survive
• Wholesaler?


  business/person that buys goods in large quantities from producers, stores them in a warehouse and sells them to retailers