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A-level Business EDEXCEL Theme 1: Marketing and people
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Entrepreneur
A person who sets up a business, taking on the financial risk. They organise a business venture by combining the other factors of production, such as land, labour and capital
Entrepreneurship
The activity of setting up a business, taking on the risks, normally in hope of making a profit
Resilience
The ability to recover from difficulties and try again
Risk
Something an entrepreneur can essentially plan for. Probabilities of outcomes are known or at least understood or considered
Entrepreneurial characteristics
Qualities or traits demonstrated by an individual starting up or running a business of their own
Entrepreneurial motive
Factors that drive a person to start a business
Ethical stance
In support of a moral belief
Home working
Setting up a business from home
Independance
The desire to be one’s own boss
Profit satisficing
Making enough profit to satisfy the needs of the business
Social entrepreneurship
Setting up a business for the intention of social issues
Business objective
A goal/target set by the business in the short/medium term to help achieve its aim/mission
Cost efficiency
Minimising costs/expenses/waste when producing a product or service
Customer satisfaction
The measure of how satisfied a customer is with their purchase
Employee welfare
Facilities and benefits provided by a business to meet the wellbeing of the employee
Profit maximisation
When the difference between sales revenue and costs is at its greatest
Sales maximisation
An attempt to sell as much as possible in a given time period (or to generate as much sales revenue as possible)
Social objectives
A goal to benefit/improve the community
Survival
A short-term business objective that aims to keep the business running
Franchise
Where a business buys the right to trade using the brand/logo/business model of an existing firm in return for a fee/royalty
Franchising
A type of business where a business operator (franchisor) allows others (franchisees) to trade under its name (for a fee)
Lifestyle business
A business set up with the aim of making no more than a set level of income from which to enjoy a particular lifestyle
Partnership
A type of business ownership/organisation owned by two or more people
Private limited company
A small to medium sized business, usually run by the family that owns it. Shares are sold to friends, family and business associates and it has limited liability
Public Limited Company
A business with limited liability whose shares are publicly traded on the stock market
Social Enterprise
A business which has aims/objectives which benefits society and isn’t for profits, it’s profits are reinvested into the business/community
Sole trader
A business owned by one person who has unlimited liability
Stock market flotation
When a business sells shares publicly on the stock exchange for the first time
Opportunity Cost
The next best alternative forgone when making decisions
Trade off
A situation where having more of one thing leads to less of something else
Leader
A person who inspires and motivates others to meet objectives
Demand
The quantity of goods/services that a customer is willing to buy at a given price and a given time
Complementary goods
Products used/consumed together, so they are purchased together (e.g printer + printer ink)
Consumer income
The money earned/received from work/investment
Demographics
The structure/groups of the population such as age, gender and geographical distribution
External shocks
Factors beyond the control of the business
Seasonality
When demand rises or falls at a particular times of year according to seasonal factors
Subsitutes
Goods that can be bought as an alternative to others, but perform the same function (e.g petrol car + electric car)
Demand curve dynamic
Inverse relationship/negative correlation - As one variable increases the other decreases