GCSE Business Studies Unit 1

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Across
  1. 1. The amount of revenue a business has left after it has paid it's variable and fixed costs. Calculated using the formula Total Revenue - Total Costs = Profit
  2. 3. map "A method of analysing the market and potential competitors using two product attributes or customer requirements. For example cheap vs expensive and modern vs traditional"
  3. 5. The amount you charge your customer for your product or service. It should reflect the image you are aiming to portray of your product.
  4. 7. Products and services produced by foreign countries and exchanged in return for flows of cash from the home country.
  5. 12. Man who developed the Hierarchy of Needs in which he stated that needs such as self-esteem and fulfilling own potential were required for someone to be truly happy
  6. 14. "Legal ownership of material such as books music and films to prevent them being copied by others"
  7. 15. Factoring A process where a firm sells the debts it owns (i.e. where customers owe it money) to a factoring company. They give the firm say 95% of what they are owed and then pursue the customers for the debt themselves.
  8. 16. The low point in the business cycle when unemployment is at it's highest. Governments start to act to stimulate the economy again by lowering interest rates or increasing taxes. Defined by two consecutive quarters where economic activity falls.
  9. 17. Balance The amount of money expected to be in a business' bank account at the start of a month according to the cash flow forecast. The opening balance is always the closing balance from the previous month.
  10. 18. "Gross Domestic Product and the measure by which economic activity in the country is most commonly measured."
  11. 21. "Value Added Tax which is added on to the sale price of goods and services in the UK. Businesses pay the VAT they collect to the government via HMR&C."
  12. 22. A person or business who sells the right for someone to trade using the franchisor's name and products
  13. 25. "Non-physical intangible products such as a taxi journey"
  14. 27. creativity The intentional creation of new ideas through recognised and accepted techniques
  15. 31. cash flow The difference between what will be received in sales revenue and what will be spent on costs. Calculated using the formula Total Inflows - Total Outflows = Net Cash flow.
  16. 32. "The process of choosing a group of strong candidates to interview for a job vacancy from all the applicants."
  17. 34. Purchase Convincing customers to buy your product or service again after they have used it for the first time
  18. 38. risk The probability of a negative event occurring
  19. 40. cost The 'real cost' of a course of action measured by not choosing the next best alternative
  20. 41. The process of generating candidates for a job vacancy
  21. 44. The highest point in the business cycle where activity is at it's highest.
  22. 47. The process of transforming inventions in to new products that can be sold to customers
  23. 48. "The way in which you make potential customers aware of the product you are offering it's features and benefits."
  24. 51. "Whereby a person is chosen for a job or treated differently once in employment on the basis of age gender religion sexuality or race"
  25. 53. Satisfaction A measure of how much a product or service meets customer expectations
  26. 54. Trader "The most simple form of business ownership in which the entrepreneur simply needs to advise the Inland Revenue (taxman) that they are self-employed."
  27. 56. "A form of ownership in which two or more people each put up a proportion of the starting finance in the business and each own a certain agreed share of the business. They also need to agree how the profits will be shared how voting rights are split and what will happen if one person wants to leave or if a new partner joins."
  28. 58. "A naturally occurring resource in it's raw state without any added value."
  29. 61. Objective "An entrepreneur's more personal reasons for starting up a business. For example to achieve a better work/life balance or to have a chance to be more creative. Only the entrepreneur will know if they have succeeded in this objective."
  30. 64. Advocacy When your existing customers are actively recommending your business to friends and family
  31. 71. advantage "An advantage that a business has over it's rivals which is both distinct and defensible"
  32. 73. "In work the desire to complete a task and meet the needs of the business consistently"
  33. 74. Financial Reward An incentive provided to an employee which has no financial value but is intended to motivate them
  34. 75. Insurance Contributions (NICs) A tax on worker's earnings which is put towards the provision of state benefits such as the State pensions and job seekers allowance. You currently need to make 30 years of contributions to receive the full state pension.
  35. 76. Costs These are costs that a firm spends increasingly more on as production of their good or service increases.
  36. 77. Group "An organisation who campaign against/for a particular issue by demonstrations public relations exercises and campaigns to the public. Examples include Tescopoly who campaign against the dominance of Tesco."
  37. 81. Even "The no. of units a firms needs to produce of it's product or service to simply meet it's costs thereby making neither a profit or a loss."
  38. 82. Business Cycle "Also known as the economic cycle this term is used to describe the fluctuations in levels of economic activity over time."
  39. 83. Products and services produced by home country and exchanged in return of flows of cash from the foreign country.
  40. 84. Capital A form of long term finance where a firm's owner sells a proportion of the firm in return for cash that can be invested in the business.
  41. 85. value The way in which a business convinces a customer to pay significantly more for a product or service than it costs to produce. There are a variety of techniques business use.
  42. 88. Money available through government agencies and charitable organisations like the Prince's Trust to help business start-ups. The money does not need to be repaid and is therefore a form of long-term finance.
  43. 89. An established business operation which can be operated by a someone in return for an investment and share of the profit.
  44. 93. sky thinking A technique of creative thinking where people are encouraged to come up with as many ideas as possible
  45. 95. Limited Company "A business which benefits from limited liability and in which shares are bought and traded freely on the stock exchange"
  46. 96. Term Finance Finance that either never requires paying back or is paid pack over the long term i.e. in a year or many more's time. It is typically used on the high costs such as equipment & premises in order to get the business started.
  47. 97. of Trade The difference between a country's exports and imports.
  48. 98. A payment to shareholders so that they can share in the profits of a firm in return for the risk they take in investing their money.
  49. 99. The amount firms are prepared to supply at different prices.
  50. 100. Describes the system by which buyers and sellers of a particular product or service carry out transactions with each other
Down
  1. 1. Specification "A set of characteristics qualities knowledge or qualifications needed by someone to carry out the roles and responsibilities adequately. Often businesses will set out essential and desirable criteria."
  2. 2. Costs Costs that remain at the same level no matter how much of it's product or service a firm produces.
  3. 4. Liability "A situation where a business owner's personal assets are protected in the event of the business incurring debts which it cannot repay. The business will instead be wound up and the assets be sold in order to raise as much cash as possible to settle as much of debt as possible. Remaining debt is written off."
  4. 6. Tax "A tax collected from the income of workers including sole traders who must pay this tax on their earnings."
  5. 8. "A form of hire of equipment that eliminates the need for the firm to buy the equipment outright. The firm never owns the equipment but is able to update the type of equipment to ensure they keep pace with developments. The lease also includes repair and maintenance."
  6. 9. "Physical tangible products e.g. a television"
  7. 10. Someone who purchases the right to operate a business using an established trade name. They get marketing and training in return for a one-off fee up front and have to pay a % of their sales or profit.
  8. 11. Plan "A document setting out the forecasts and plans for future growth and development f a business. Will include market research competitor analysis cashflow and profit forecasts and should also consider employees suppliers and operation processes."
  9. 13. A short term facility offered by a bank to help a business borrow some money for a short period to overcome a problem with their cashflow. High interest rates are charged and the bank can withdraw the facility at any time.
  10. 19. "The name symbol or logo of products that can be protected by law"
  11. 20. "A person group or organisation affected by the actions of a business in a positive or negative way."
  12. 23. Tax A tax on the profits of limited companies.
  13. 24. A form of long term finance where banks lend to firms. These loans can be agreed to be paid back in a time frame that matches the business' ability to pay in the future. The monthly loan repayments could lead to cashflow problems if too much is borrowed.
  14. 26. Someone who is prepared to take risks in order to bring a business idea to life
  15. 28. hoc research Takes place at a specific time to support a particular project e.g. whether to develop and launch a new product or service
  16. 29. liability A situation in which a business owner could be forced to sell personal assets such as their home in order to settle business debts. This situation arises if businesses are sole traders or partnerships.
  17. 30. Credit "An arrangement whereby suppliers of raw materials allow a firm to receive the goods but pay for them at a later date. This gives the firm the chance to turn these materials in to finished goods and sell them generating a revenue before they have to pay for the materials which helps cash flow."
  18. 33. A decline in economic activity as governments seek to dampen down excessive demand in order to control price rises.
  19. 35. People who own a share of a private limited company. They are given ownership of a share of the company in return for providing finance to get the business started. They may also provide advice and guidance to the person(s) who run the company on a day to day basis.
  20. 36. rate The value of one currency in relation to another.
  21. 37. thinking Thinking differently to try and find new and unexpected ideas
  22. 39. "The discovery of new processes and potential new products typically after a period of research"
  23. 42. research "Research that takes place on a regular basis such as monthly calls to customers to find out their views about the service received or annual research in to a market and the trends and developments within it."
  24. 43. analysis The process of investigating the strengths and weaknesses of potential competitors before starting a business. This enables an entrepreneur to target a customer need which may not be met very well at present.
  25. 45. Description A document setting out the key roles and responsibilities for a particular job so any applicant knows what a particular job will involve them doing
  26. 46. Mix A blend of marketing activities used together to persuade customers to do business with you. Also known as the 4 P's
  27. 49. forecast "A prediction usually on a monthly basis of the amount of money a business will receive from sales revenue and what it will spend on costs."
  28. 50. research "Research that takes the form of attitudes beliefs and opinions of people. Will require open questions that enable people to respond fully."
  29. 52. research Research that is already in existence which can be used by businesses to find out about the market in which they want to operate. (Cheaper and quicker but not tailored to specific requirements)
  30. 55. "Her Majesty's Revenue and Customs also sometimes referred to as the Inland Revenue. This is organisation is responsible for overseeing the accurate collection of tax from people and organisations."
  31. 57. research Research that takes the form of figures and data that can be analysed to look for trends and differences. Requires questions that have specific responses.
  32. 59. Partner A partner in a business who provides funding but does not work actively in it's day to day running
  33. 60. What people are willing and able to purchase at different prices.
  34. 62. Capital A form of share capital where professional investors called venture capitalists invest in businesses with high growth potential.
  35. 63. profit "Profits from previous years of trading which are reinvested in to the business to help it to grow. This approach avoids borrowing money which has to be repaid which in turn helps avoid cashflow problems."
  36. 65. The good or service you are selling. Unless you are committed to offering the lowest cost product you should try to offer unique features in your good or service to make it stand out from the crowd
  37. 66. Limited Company A form of business ownership in which the business owner(s) set up the business as a separate 'legal entity'. This keeps the business finances and assets separate from the personal finances and assets of the business owner(s). Shares can only be bought and sold with agreement of existing shareholders.
  38. 67. The process of assessing candidates and choosing the most suitable
  39. 68. Objective "An entrepreneur's objective for a firm in terms of measurable financial achievement of the business. For example to achieve £1 million sales revenue or achieve 10% market share. These are usually very specific and an outsider can see whether they have been achieved or not."
  40. 69. Right of ownership of an invention or process by registering it with the Intellectual Property Office
  41. 70. "The way in which you make your product available to customers for example retail outlets wholesalers internet call centres. Also known as distribution. Partners in distribution should match the image you wish to convey. For example you would not sell a very expensive fashion clothing item in a low cost fashion store such as Primark."
  42. 72. "A willingness by an individual or business to take risks show initiative and undertake new ventures"
  43. 78. Term Finance Finance that should be paid back within a year. The next three terms are all types of short term finance.
  44. 79. Balance The amount of money expected to be in a business' bank account at the end of a month according to the cash flow forecast. This can be calculated using the formula Opening Balance for the month + Net Cash Flow = Closing Balance.
  45. 80. The chance of damage or loss as a result of making a decision to undertake a course of action
  46. 86. Outflows The total of any money expected to be spent by a business on costs in it's cashflow forecast.
  47. 87. Activity The amount of products and services produced and sold within a country.
  48. 90. The economic activity starts to increase again. Investment increases and unemployment starts falling.
  49. 91. The mnemonic to remember how exchange rates affect the price of imports and exports. Strong Pound Imports Cheaper Exports Dearer.
  50. 92. research "Research carried out by or on behalf of a business specifically for their needs or requirements. (Expensive but tailored to the business' requirements)."
  51. 94. "The amount of money a business receives from sales of it's products and/or services. This is often known also as turnover sales income or receipts. Total Revenue is calculated by the formula Average Price per unit x Quantity of units sold."