Chapter 1: Starting a Business Flashcards Preview

GCSE AQA Business Studies Unit 1 and Unit 2 > Chapter 1: Starting a Business > Flashcards

Flashcards in Chapter 1: Starting a Business Deck (27)
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1
Q

Business

A

an activity that requires the organisation of resources to achieve a reward, whilst running a risk

2
Q

Entrepreneur

A

an individual with an idea or business

3
Q

Gap in the market

A

a business opportunity that is either a completely new idea or adds something different to an existing product or service.

4
Q

Franchise

A

The legal right to use the name and logo of an existing firm and sell the same products.

5
Q

Business Aim

A

A stated target for the future. For example, a new business may have the aim to survive its first year of trading.

6
Q

Business Objective

A

A clearly defined target for a business to achieve over a cetain period of time.

7
Q

Growth

A

An increase in turnover(sales), market share or profit.

8
Q

Profit

A

What is left after costs have been deducted from revenue.

9
Q

Profit Margin

A

Profit made as a proportion of sales revenue.

10
Q

Sales

A

The amount sold or the value sold.

11
Q

Market Share

A

The proportion of total market sales sold by one business.

12
Q

Customer Satisfaction

A

How happy the customer is with the product or service.

13
Q

Ethics

A

The moral questions on which decisions are made and the impact the business has on its internal and external environment.

14
Q

Turnover

A

The value of sales made during the trading period, also called revenue.

15
Q

Stakeholder

A

An individual or group with an interest in a business, such as employees, customers, managers, shareholders, suppliers, competitors and the local community.

16
Q

Business Plan

A

A statement showing how a business sets out to achieve its aims and objectives.

17
Q

Funding

A

The capital provided for the various stages of business growth by different sources of finance, either on a short- or long-term basis.

18
Q

Forecast

A

A technique where the business attempts to estimate future sales, or other financial variables.

19
Q

Risk

A

The potential for loss but rewards in business make it a calculated gamble.

20
Q

Uncertainty

A

Not knowing the future, or what is going to happen.

21
Q

Sole Trader

A

The most common form of business organisation, often just one person

22
Q

Partnership

A

The simplest way two or more people can be in business together where partners are jointly and personally responsible for debts.

23
Q

Unlimited liability

A

Unincorporated businesses, such as sole traders and partnerships, have unlimited liability, which means that the owners are responsible for all the business’s debts.

24
Q

Incorporation

A

The process of forming limited liability company such as a private limited company or PLC.

25
Q

Limited Liability

A

Investors (shareholders) in a limited company can only lose their investment in the business if it fails; they cannot be forced to sell assests to pay off the firm’s debts.

26
Q

Technology

A

In relation to business location, this refers to the use of e-technology, such as the Internet and email, to create a virtual market between the business and the consumer.

27
Q

Logistics

A

The process of buying, managing and delivering goods, from the point of manufacture to the end customer.