Learn: Business Studies: Marketing, Accounting, Ownership & Entrepreneurship

Promotion

Activities used to encourage customers to buy.

Advertising

Paid messages that promote a product or service.

Personal selling

A salesperson talks directly to a customer.

Sales promotion

Short-term offers like discounts and competitions.

Public relations (PR)

Activities that build a positive business image.

Direct marketing

Communicating directly with customers through emails or texts.

Sponsorship

Supporting an event or person in exchange for publicity.

Assets

Resources a business owns that have value.

Liabilities

Money a business owes to others.

Owner's equity

The owner's share of the business after debts.

Accounts payable

Money owed to suppliers.

Accounts receivable

Money customers owe the business.

Bank overdraft

An agreement to withdraw more money than is in the bank account.

Loan

Money borrowed that must be repaid, usually with interest.

Mortgage

A loan secured against property.

Drawings

Money or assets taken by the owner for personal use.

Accounting equation

Assets = Liabilities + Owner's Equity.

Extended accounting equation

Assets = Liabilities + Capital + Revenue - Expenses - Drawings.

GST

A 15% tax added to most goods and services in NZ.

Buying on credit

Getting something now and paying for it later.

Debit (Dr)

The left-hand side of an account.

Credit (Cr)

The right-hand side of an account.

Sole trader

A business owned and run by one person.

Partnership

A business owned by two or more people.

Public company

A company that can sell shares to the public.

Private company

A company whose shares are privately owned.

Unlimited liability

The owner can be personally responsible for business debts.

Limited liability

Owners generally only risk their investment.

Entrepreneur

Someone who starts a business and takes risks.

Creativity

Coming up with new ideas.

Initiative

Taking action without being told.

Risk-taking

Willingness to take calculated risks.

Perseverance

Continuing despite difficulties.

Stakeholder

A person or group who affects or is affected by a business.

Internal stakeholder

Someone who is part of the business.

External stakeholder

Someone outside the business.

Unique Selling Point (USP)

What makes a product different from competitors.

Target market

The group of customers a business wants to reach.

Primary research

New information collected first-hand.

Secondary research

Information already collected by someone else.

Aim

A broad goal a business wants to achieve.

Objectives

Specific results a business wants to achieve.

Social goals

Goals that benefit people, society or the environment.

Putake

An intended outcome or purpose.

SMART goals

Goals that are Specific, Measurable, Achievable, Relevant and Time-bound.

Marketing mix

The strategies a business uses to market its product.

Product

The good or service being sold.

Price

The amount customers pay.

Place

Where and how a product reaches customers.

Channel of distribution

The path a product takes to reach the customer.

Adding value

Making a product more useful or appealing.

Cost-plus pricing

Adding a mark-up to the product's cost.

Penetration pricing

Setting a low starting price to attract customers.

Predatory pricing

Setting extremely low prices to push competitors out.

Competitor pricing

Setting prices based on competitors' prices.

Price discrimination

Charging different customers different prices for the same product.

Psychological pricing

Setting prices to influence how customers view them.

Informative promotion

Promotion that gives customers facts about a product.

Persuasive promotion

Promotion that convinces customers to buy.

Reminder promotion

Promotion that reminds customers about a product.