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Definition
| An individual that takes calculated risks when deciding on setting up a business venture in pursuit of an idea. |
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| This cost is the 'real cost' of any action in terms of the next best alternative forgone. |
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| A franchise is established when a business (franchisor) gives the right to supply its product or service to another business (franchisee). |
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| Copyright is the legal protection against copying for authors, composers and artists. |
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Definition
| This is an official document granting the holder the right to be the only user or producer of a newly invented product or process. |
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Definition
| A trademark is a sign, logo, symbol or word(s) displayed by a company that distinguishes its brands from its competitors. |
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Definition
| A business plan is a document that sets out the goals of a new or existing business and how they can be achieved, specifying the marketing, operational and financial implications. |
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Definition
| Market research is the collection, collation and analysis of data relating to the marketing and consumption of goods and services. |
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Definition
| This involves the first hand collection of data for a specific purpose. |
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Definition
| This is the use of data that has already been collected. |
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Definition
| Gives numerical data gathered by a 'closed' question. |
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Definition
| Gives opinions and views gathered by asking 'open' questions. |
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Term
| Secondary Internal Sources |
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Definition
| Data that the business might already have gathered. |
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Term
| Secondary External Sources |
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Definition
| Data that a third party may have already gathered. |
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Definition
| Sampling is where firms select a group of people whose views or behaviour should be representative of the target market as a whole. |
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Definition
| A market segment is a subgroup of consumers with similar characteristics. |
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Definition
| This is the proportion of the total sales of a product achieved by a firm. |
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Definition
| This is the measurement by volume or value of the total sales of a product. |
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Definition
| This is the percentage in change in sales by volume or value over a specific time period. |
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Definition
| Means that the personal assets of the owner of a business can be used to pay of debts if the business gets into financial trouble. |
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Definition
| Means that it is only the owners' investment in the business that is at risk if the business gets into financial difficulty. |
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Definition
| These are costs that vary directly with output. The more that is produced, the higher the variable costs will be. |
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Definition
| These are costs that do not vary directly with output, such as rent. |
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Definition
| The amount paid by a customer to purchase one unit of a product. |
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Term
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Definition
| Is a measure of the income received from an organisation's activities. |
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Term
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Definition
| Is the difference between the income of a business and its total costs. |
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Definition
| Is the difference between the selling price of an item and the cost of making or buying that item. |
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Definition
| Is the number of units that needs to be sold in order for total revenue to equal total costs. |
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Definition
| Is the difference between the selling price per unit and the variable cost per unit. |
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Definition
| Is the difference between the current level of sales and the break-even level of sales. |
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Definition
| Measures the cash inflows and cash outflows over a period of time. |
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Term
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Definition
| This is a financial plan, establishing the policy to be pursued and the anticipated outcomes of that policy. |
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Term
| Forecast Annual Labour Productivity Calculation |
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Definition
| Total output over a given year / Total number of employees |
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