Business Revision 1.2

A business is which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.

Risk capital invested in business start-ups or expanding small businesses that have good profit potential but do not find it easy to gain finance from other sources.

The process of collecting, recording and analysing data about customers, competitors and the market.

The selling of standardised products or ranges of products in the same way to the whole market.

Identifying and exploiting a small segment of a larger market by developing differentiated products to suit that segment.

These costs can be clearly identified with each unit of production and can be allocated to a cost centre.

The sum of cash payments to a business less the sum of cash payments from the business.

The total value of all long-term finance invested in the business.

The level of output at which total costs equal total revenue, when neither a profit nor a loss is made.

The difference between the cost of purchasing bough-in inputs (materials) and the selling price of the finished goods.