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Year 10 Unit 1 Key Term-GCSE economics.

By Martin Ward,2014-01-10 02:39
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Year 10 Unit 1 Key Term-GCSE economics.

    Year 10 Unit 1 Business & Economics Key Terms

    Key Term Explanation

    Absenteeism the percentage of the workforce that is absent on the average

    day

    Adding Value creating something of a higher value to a customer than its

    bought-in costs

Business Plan a document which includes a detailed description of a business,

    financial forecasts, market research and information about the

    entrepreneur

Cash the money the firm holds in notes and coins and in the bank

Cash Flow the movement of money into and out of the firm’s bank account

    Cashflow Forecast a projection of the likely inflows and outflows of money over a

    period of time e.g. a month and helps ensure the business can

    meet its short terms debts and commitments

    Commodity a product in which all supplies are the same and therefore

    interchangeable, such as a pound of sugar

Copyright protection for a creative work being copied

Corporation Tax tax paid a s a percentage of a company’s profit

Curriculum Vitae a summary of a person’s qualifications and achievements

    Deliberate a way of thinking of new business ideas by breaking down existing creativity products into their component parts

    Demand the amount of a product or service that customers are willing and

    able to pay at a given time

Dividends a share of a firm’s profits distributed to its shareholders

Economic Growth the rate of rise in total output per year within an economy

    Entrepreneur an individual who sets up and runs their own business and takes

    the risk of success or failure

Exports goods that are produced in the UK that are sold overseas

Fixed Costs costs that do not change according to output e.g. rent

    Franchise a business format which involves buying the rights to trade under

    an established business name e.g. McDonald’s

Franchisee the entrepreneur who buys the rights to a franchise

    Franchisor the owner of a business format which is licensed out to other

    people or businesses

    Grant a source of finance issued by the government through

    organisations such as business link it does not have to be repaid

Imports goods produced overseas that are sold in the UK

Income Tax tax paid as a percentage of a person’s wage

Induction Training initial training to make newcomers feel comfortable in their job

Innovation bringing new ideas to market

Insolvency the inability to repay debts as they become due

Invention showing an original idea can work in theory

    Labour Turnover the percentage of the workforce that leaves each year and has to

    be replaced

Limited Liability restricting the losses suffered by owners to the sum they

    invested in the business

Liquidation selling off a firm’s assets in order to raise cash to pay off debts

Market the place where buyers and sellers meet

    Market Map grid that measures two different aspects of the brands within a

    market e.g. young/old and expensive/cheap

    Market Research finding out customer opinions and actions usually through

    interviews or gathering sales information

    Market Segments sections of a market focused upon specific types of customer,

    based on age; sex; lifestyle

Market Share the percentage of the sales within a market held by one business

Market Size the total value of all the sales within a particular market

Monopoly where sales within a market are dominated by a single business

    National Insurance a form of tax that is paid by employers and employees as a

    contribution towards welfare payments such as unemployment pay

    Not-For-Profit a type of business which is not concerned with making money e.g. a

    social enterprise such a community centre

Off-the-Job takes place away from the place of work e.g. at a training centre

    Training

    On-the-Job takes place while working at the job e.g. training at a supermarket

    Training

    Overdraft short-term loan from a bank which allows a business to go into a

    negative balance in their account

    Patent registering a new way of producing something or technological

    innovation, to establish sole rights to its use and distribution

Primary Research research carried out first-hand for a specific purpose

Primary owners/shareholders; staff; and customers

    Stakeholders

    Private Limited a small to medium size business which enjoys limited liability

    Company

    Profit sales revenue total costs

Qualitative in-depth research to find out customer behaviours and attitudes

    Research

    Quantitative research involving large quantities of data, which allows statistical Research analysis of the results

    Recession a downturn in sales and output throughout the economy, often

    leading to high unemployment

Repeat Purchase customer loyalty reflected in regular purchasing

Revenue calculated by multiplying the Selling Price by the Units Sold

    Royalties paying a percentage of the sales revenue generated by a business

    or product e.g. to a franchisor

Sales Forecast estimates of future levels of sales

Sales Revenue selling price x quantity sold

Secondary research that has previously been carried out for another purpose

    Research

    Secondary residents; governments; and pressure groups

    Stakeholders

    Share Capital finance raised by selling part-ownership in the business

Sole Trader a business run by one person with unlimited liability

    Stakeholders anyone who is interested in or effected by the activities of a

    business

Total Costs fixed costs + variable costs

Unethical an action or decision that is wrong form a moral standpoint e.g.

    exploiting child workers

    Unlimited Liability treating the business and the individual owner as inseparable,

    therefore making the individual responsible for all the debts of a

    failed business

USP a feature of a product or service that makes it stand out

    compared with the competition

Variable Costs costs that change according to output e.g. stock

    Venture Capital finance provided by an individual or organisation in return for a

    stake in the business. They will hope to get their investment back

    plus extra as reward for the risk

Workforce the total number of employees in the business

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