Buss 1 Key Terms

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BUSS1 Key Terms Adding value A process through which a business increases the worth of the resources included in production so that customers perceive the product to be worth more than the cost of the inputs Advisor An external contact of a business that provides support and advice, sometimes for free Bank loan A fixed amount loan from a bank which is generally used to finance long-term assets Bank overdraft Borrowings from a bank on a current account which are payable on demand Breakeven point The point at which the total sales of a business equal total costs -i.e. the business is making neither a profit nor a loss Budget A detailed plan of income and expenses expected over a certain period of time Business plan A detailed…show more content…
The firm with the largest percentage market share is known as the market leader. Market size The total value or quantity of demand in a specific market over a specific period of time. Can be measured in value terms (e.g. sales) or in terms of quantities (e.g. units) bought or sold. Niche market A smaller part of a larger market in which customers have more specific needs and wants. Opportunity cost The cost of a decision as measured by the benefits foregone of the next best alternative Patent The right to be the only user of producer of a specified product or process Permanent employee An employee who is employed on a formal employment contract and remains with the firm for an open-ended period until the contract is ended. Compare with a temporary employee (“temp”) who is employed for a shorter, time-limited period. Primary research The market research that involves the collection of data that does not yet exist Profit The difference between total sales and total costs Qualitative research Market research concerned with collecting data on attitudes, opinions, beliefs, intentions etc. Quantitative research Market research concerned with collecting data that can be quantified - e.g. sales statistics Return The rewards to enterprise – e.g. profit, satisfaction Revenue The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold. Risk The probability or chance that
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