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Key terms and Spelling List - Year 10 Business Studies
  • Topic 1.1 Enterprise and entrepreneurship
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    EnterpriseThe ability to turn an idea into a successful business. In economic terms – enterprise includes the combination of three of the factors of production. 
    EntrepreneurAn individual who has and then develops a business idea and is prepared to take risks to exploit a business opportunity. The entrepreneur may invent a brand new product or service or recognise and exploit a gap in the market 
    InventionThe creation of a brand new product or service that has not been available before.  
    InnovationBringing a new product to the market place or adapting an existing product by changing and improving it in some way.  
    Unique selling pointThe specific feature or features that make a product different from the competition.  
    Consumer/customerConsumer – the person who uses a good or service. Customer – the person who purchases a good or service from a business.  
    Added ValueThe way in which a business increases the worth of its inputs and sells them for a higher amount than they were purchased for. Main sources of added value are convenience and speed, branding, quality, design and the USP 
    Competitive advantageThe advantage that a business has over the rival firms in its market. 
    RiskAn event that may occur and if it does will have a harmful or negative effect. Calculated risk is a way of assessing and managing risk which considers the probability of a risk occurring and the financial implications if it does occur 
  • Topic 1.2 Spotting a business opportunity
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    Primary ResearchPrimary research is new research, carried out to answer specific issues or questions. It can involve questionnaires, surveys or interviews with individuals or small groups.  
    Secondary ResearchSecondary research makes use of information previously researched for other purposes and publicly available.  
    Market segmentsHow customers are divided, according to their different characteristics. 
    Marketing MixMarketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four Ps: price, product, promotion, and place.  
    Product life cycleThe natural life of a product or service 
    Market ResearchMarket research is any organised effort to gather information about target markets or customers. It is a very important component of business strategy 
  • Topic 1.3 Putting a business idea into practice
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    OverdraftA deficit in a bank account caused by drawing more money than the account holds 
    MortgageA large sum of money borrowed to buy a property, payments are made each month by the borrower 
    InflowMoney coming into a business.  
    OutflowMoney going out of a business 
    LeasingLending a property or business in exchange for money.  
    ProfitThe amount of money made on a product sale after deductions for things like staff costs, rent etc. are deducted 
  • Topic 1.4 Making the business effective
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    DistributionIndustries where costs of transport of raw materials and finished goods are relatively low, so that they can be situated in a wide variety of location.  
    Sole TraderThe individual who owns and controls a business, who has unlimited liability. 
    Public Limited Company (PLC)A company that can buy and sell their shares to the public, usually in the stock market. This type of company has limited liability. The owners are called shareholders.  
    FranchisingFranchise A business that is licensed to use the name, logo and expertise of an existing company in order to trade. Franchiser The company who licenses their name, logo and expertise to another company. Franchisee The person who applies for a license  
    Private SectorPrivate Sector All companies that are run and owned by individuals 
    Public SectorAll organisations that are controlled by either national or local government 
    RecruitmentThe process of finding the right people to work for you 
  • Topic 1.5 Understanding external influences on business
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    EconomyMarket Economy Producers and consumers are free to produce and consume as they wish. Government role is very small. Planned economy An economic system where the government decides what will be produced. Usually the government owns the businesses. 
    The Business CycleThe regular pattern of upturns and downturns in demand and output within the economy.  
    Economic growthThe increase in the total amount of goods and services produced by all firms in the economy.  
    Unemployment The number of people registered as out of work.  
    Interest ratesThe cost of borrowing money or the reward for saving money 
    E-CommerceCommercial transactions conducted electronically on the Internet.  
  • End of Year Examination and Topic 2.1 Growing the business
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    Corporate responsibilityAttempts by individual businesses to behave in an ethical manner. 
    Organic GrowthOrganic (or internal) growth involves expansion from within a business, for example by expanding the product range, or number of business units and location. 
    Inorganic growthWhere a business grows 'externally' usually through mergers or takeovers 
    EthicsA set of social principles that govern or influence how we behave. Ethical Behaviour Business behaviour which places moral values above maximising profits. 
    SustainabilityMeasure of whether a production process can be continued into the long term. A business policy based on sustainability focuses on recycling, waste management and replanting.  
    DiversificationMany companies have grown by diversifying. This means moving into other areas of production or sales. A conglomerate is a business that operates in many different markets.