| A | B |
|---|
| Adviser | An external contact of a business who 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 |
| Break?even | 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 angel | A particular type of investor, usually a successful entrepreneur, who is willing to invest in high?risk, high?growth firms at a very early stage |
| Business plan | A detailed description of a new or existing business, including the company's strategy, aims and objectives, marketing & financial plan |
| Cash flow | The movements of cash into ("inflows") and out of ("outflows") a business |
| Cash flow forecast | A projection, usually by week or month, of the likely cash inflows and outflows in a business |
| Contribution | The difference between total sales and total variable costs |
| Costs | Amounts incurred by a business as a result of its trading operations |
| Demand | The amount of a product or service that customers are willing and able to pay at a given time |
| Demographic segmentation | Defining a market in terms of social?economic factors such as age, income, class etc |
| Elasticity of demand | The responsiveness of demand to a change in price or incomes |
| Enterprise | The process by which new businesses are formed in order to offer products and services in a market |
| Entrepreneur | An individual who sets up and runs a new business and takes on the risks associated with the business |
| Fixed costs | Costs that do not vary with the level of output |
| Franchisee | The person or company which operates a franchised business format ? under licence from a franchisor |
| Franchisor | The owner of a business format (franchise) which is licensed out to other people or businesses (franchisees) |
| Inputs | The resources (land, labour, capital, enterprise) that go into producing goods and services |
| Limited liability | Shareholders are only liable for the money they have invested ? not for the overall debts and liabilities of their company |
| Margin of safety | The difference between the actual level of output and the break?even output |
| Market growth | The percentage growth in the size of the market, measured over a specific period |
| Market research | The process of planning, collecting, and analysing data relevant to help make marketing decisions |
| Market segmentation | The process of dividing a market into smaller sections (segments) which contain customers with similar needs and wants |
| Market share | The share of the total market that is owned by a particular business, product or brand |
| 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 |
| 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 |
| Risk | The probability or chance that hoped?for outcomes will not occur |
| Sample | In market research, a sample is a subset of a population |
| Sole trader | A one?person business with unlimited liability for the debts of that business |
| Total costs | The total of variable and fixed costs in a business |
| Trade credit | Amounts owed to suppliers of a business – a source of finance |
| Trademark | A word, symbol, or phrase used to identify a particular company's product and differentiate it from other companies' products |
| Unlimited liability | Unlimited liability describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business |
| USP | Unique selling point ? a feature of a product or service that makes it stand out compared with the competition |
| Variable costs | Costs that vary directly in proportion to output |
| Venture capital | Investment made by specialist funds to finance the launch, early development or expansion of a private company |
| Working capital | The amount of money that a business has available to conduct it's day?to?day activities |
