Studied by 3 peopleaverage total cost
Where unit costs fall when output increases
brand
having a unique name/logo/identity
Current liabilities
Debts that the company must pay in the short term (in less than a year)
market segment
part of a market where consumers have similar characteristics
revenue
income from sales
variable costs
costs that change when output changes
above the line promotion
The use of mass media methods to promote a large audience
branding
A name/symbol/design that identifies and differentiates a product from other products
break-even
When total costs are the same as total sales
capital intensive production
Production methods that make more use of machinery than labour
commission
payment made to an employee linked to the number of sales made
crowdfunding
raising money from many people for a new project via the internet
delegation
the passing of responsibility to a subordinate
demographics
A particular section of the population
Diseconomies of scale
an increase in average costs per units
e-tailers
the use of electronic systems to sell goods or services
Economies of scale
When average costs fall as a result of business increasing in size
Fixed costs
Costs that do not vary with level of output
fringe benefits
Additional benefits over and above the normal wage or salary
Globalisation
Companies operating internationally across the world
Hierarchical structure
A structure with many levels
Insolvency
When a business can no longer meet its debts
Inventory
Inventory is the goods a business has for sale
Job production
A method of production that involves completing one unit of output at a time
Job share
Two part time employees share a single job
Multinational business
A business that is operational in more than one country
Liquidity
How easily a business can change its assets into cash
Non current assets
An investment owned for longer than a year
Non current liabilities
Debts that are payable after 12 months
Overdraft
An agreement to draw more money from a bank account that it has in it
Person specification
Details of the qualifications experience in the person appointed
Personal savings
Money that belongs to individual not a business
Skimming
Setting a high price for a new product and then lowering it later
Primary sector
The extraction of raw materials from the earth
Product life cycle
The stages a product will pass through from its introduction, through to growth, maturity and then decline
Profit
the difference between total revenue and total costs
Public corporation
Owned by the state government
Public relations
Building and maintaining a favorable image of a business for its products
Quality control
A product or service that meets the standard set by the business
Quantitative data
Data that is measured by value and represented as numbers
Remuneration
Money paid for work or a service
Short term finance
Money borrowed that must be paid back within 12 months
Social enterprise
A business whose profits are used to benefit it and the community or environment
Sole trader
A business owned exclusively by one person
Stakeholder
Individuals or groups with an interest in the success or failure of a business
Venture capital
A type of risk capital available to start up businesses
Note
Flashcard