Edexcel GCSE Business Theme 1 Keyterms

Asset

• changing an existing product or process

• any item of value that a business owns, such as machinery or premises.

• the proportion of sales in a market that are taken by one business

• the flow of goods and services out of a country

Overdraft

• A facility offered by a bank that allows an account holder to borrow money at short notice

• When an individual is unable to pay their debts

• When a company ceases trading

• A long term source of finance

Brand loyalty

• This is how you market your business

• A customers willingness to buy a product from a particular business rather than from competitors

• The logo that you use to advertise your business

• A customers willingness to buy a product from competitors

Business plan

• A document that tells you who owns it

• A document that outlines how a business will advertise their products

• A document that outlines how a business will fund a new business only

• A document that outlines how an entrepreneur is going to set up a new business

Competitive advantage

• Who your competitors are

• An advantage a business has over its rivals that is unique and sustainable

• A document showing you whats wrong with your business

• A financial statement showing you your advantages over your competitors

Consumer

• The person who invents the product/service

• The person who buys the product/service

• The person who buys and uses the products/service

• The person who sells the product/service

Convenience

• Making life easier for customers, i.e. great location or product that saves time in preparation or consumption

• Making life harder for customers, i.e. making it hard to get, which means higher demand

• Making life cheaper for customers, i.e. offering the product at a loss

• Making life better for customers, i.e. the product will improve their life

Customer base

• The clients who do not buy/sell to the business

• The clients who make money from the sale of products/services

• The clients who sell the products/services to a business

• The clients who buy the products/services of a business

Demographics

• The laws that a business must comply with

• The place where customers live and buy their products

• Statistical differences that exist within a population, now and in the future

• Out of date products

Differentiate

• The strength and number of competitors operating in a market

• Show that a product is different from similar products

• Giving a product or service 'personality' with a name

• Features of a product