Business

Limited liability

Limited liability

Owner not legally responsible for business debts, separate legal entities

Unlimited liability

Owner legally responsible for business debts, not separate entities

Sole Trader

Unincorporated business owned by one person

Partnership

Unincorporated business by two or more people

Private Limited Company (LTD)

Incorporated business, shares not sold to public

Public Limited Company (PLC)

Incorporated business, shares sold to public

Annual General Meeting

Shareholders vote on board of directors

Dividends

Payments to shareholders from company profits

Franchising

Licensing established business to entrepreneurs

Joint Ventures

Businesses start new project together

Public Corporation

State-owned business

Recruitment

Process of employing someone

Employee selection

Evaluating candidates for a job

Job Analysis

Determining job responsibilities

Job Description

Summary of job duties

Job Specification

Outlines job requirements

Internal Recruitment

Filling vacancy with existing employee

External Recruitment

Filling vacancy with new employee

Part Time

Employment for 1-30 hours a week

Full Time

Employment for 35+ hours a week

Induction Training

Introduction to business for new employees

On the job training

Training by observing experienced worker

Off the job training

Training away from workplace

Dismissal

Ending employment against employee's will

Redundancy

Employee loses job due to no longer needed

Contract of employment

Legal agreement between employer and employee

Industrial Tribunal

Court for disputes between companies and employees

Ethical Decision

Decision based on moral code observed by firm

Marketing

Identifying customer wants and satisfying them

Customer

Person or organization buying goods/services

Customer Loyalty

Continual buying from the same business

Customer Relationships

Communication to encourage loyalty

Market Share

Percentage of total market sales held by a brand

Consumer

Buys goods/services for personal use

Mass Market

Large market selling same product to all

Niche Market

Specialized subpart of a larger market

Market Segment

Subgroup of a market with similar characteristics

Target Market

Group of consumers a product is aimed at

Market

Where goods/services are sold

Product-orientated

Focus on the product itself

Market-oriented

Focus on consumer wants before product development

Market Research

Gathering information about the market

Primary Research

Collection of original data

Secondary Research

Existing research data

Quantitative research

Numerical data collection

Qualitative research

Understanding opinions and motivations

Marketing Mix

Activities in marketing a product or service

Consumer goods

Tangible products for personal use

Consumer Services

Intangible products for personal use

Producer Goods

Tangible products for businesses to use

Producer Services

Intangible products for businesses to use

USP (Unique Selling Point)

Special feature differentiating a product

Brand Name

Unique name distinguishing a product

Brand Loyalty

Continual buying of the same brand

Brand Image

Identity given to a product distinguishing it

Packaging

Physical container for a product

Product Life Cycle

Stages from introduction to decline

Extension Strategy

Keeping a product at maturity stage

Cost-Plus Pricing

Cost of manufacturing plus profit mark-up

Competitive pricing

Pricing in line with competitors

Penetration Pricing

Setting price lower than competitors

Price Skimming

Setting high price for a new product

Promotional Pricing

Selling at low price for a short period

Dynamic Pricing

Changing prices based on demand

Price elastic demand

Consumers sensitive to price changes

Price inelastic demand

Consumers not sensitive to price changes

Distribution Channel

Means of passing product to customer

Agent

Independent person dealing with product sales

Promotion

Activities raising customer awareness

Advertising

Paid communication with customers about a product

Informative Advertising

Giving full information about a product

Persuasive advertising

Trying to persuade consumers to buy

Target audience

Potential buyers of a product or service

Sales Promotion

Incentives for short-term sales increase

Loyalty Cards

Personal selling with promotions

Sponsorship

Company support for events or teams

After Sales Service

Reassurance for product repairs

Gifts

Encouraging purchases with small gifts

BOGOF

Encouraging multiple purchases