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WorksheetsTheme 1 Edexcel Business Key terms
Total questions: 106
Worksheet time: 38mins
What is the term for the difference between the cost of materials to make a product and the price charged for it?
Breakeven
Added value
Cash flow
Competitive advantage
What does a business plan typically include?
A list of competitors
Details of products, resources needed, and financial forecasts
Employee salaries
Customer demographics
What is the definition of cash inflow?
Money leaving the business
Money coming into the business
The amount of money left at the end of a period
The total revenue of a business
Who is considered a consumer?
The person who buys the product
The person who uses the product
The person who sells the product
The person who manufactures the product
What is crowdfunding?
A method of selling products online
A large number of individuals investing in a business project
A type of business loan
A government grant for businesses
What is the term for goods and services that are bought into one country from another?
Export
Import
Domestic trade
Local purchase
What is the cost of borrowing and the reward of saving, which can be fixed or variable?
Inflation
Interest
Insolvency
Investment
What is the term for a business organization that is usually owned by 2-20 people, who have unlimited liability?
Corporation
Partnership
Sole proprietorship
Limited company
What is the term for the amount left from revenue after costs have been paid?
Revenue
Profit
Loss
Expense
What is the term for a product which is out of date and no longer used?
Obsolete
Vintage
Modern
Current
What is a sole trader?
A business with multiple owners
A business with a single owner who has unlimited liability
A business with limited liability
A business owned by shareholders
What is the definition of a stakeholder?
A person who owns shares in a company
A person with an interest in the activities of a business
A person who provides funds for a business
A person who manages a business
What does the term "unlimited liability" mean?
Owners are not responsible for business debts
Owners are responsible for all business debts
Business debts are limited to the amount invested
Business debts are shared among stakeholders
What is a unique selling point?
A common feature of a product
A characteristic that makes a product different from others
A feature that reduces the cost of a product
A characteristic that increases the production time
What is venture capital?
Funds provided by inexperienced investors
Funds provided by an experienced business person for risky companies
Funds provided by banks for large corporations
Funds provided by the government for public projects
What is meant by Added value?
How the product passes from the producer to the consumer.
A general and persistent rise in prices which reduces purchasing power.
The number of products a business must sell so that its total revenue is the same as its total costs. At this point, the business will make no profit or loss.
The difference between the cost of the materials taken to make a product and the price that is charged for the product.
What is meant by Aims and objectives?
The goals of a business. These may be financial or non‐financial.
The return for taking a risk and making it a success.
The collection of data that already exists but is then used for a business's own requirements.
The variety of ways in which customers can pay for a product. Includes contactless payments, apple & android pay, PayPal and more traditional methods.
What is meant by Breakeven?
A measure which could be sales, market share or profit related.
The advantage one company has over another, or several others.
Data which is detailed and contains information about people's feelings and opinions.
The number of products a business must sell so that its total revenue is the same as its total costs. At this point, the business will make no profit or loss.
What is meant by Business plan?
Laws passed by Acts of Parliament.
Goods or services that a firm produces in its home market, but sells in a foreign market.
A person who organises resources, makes decisions, and takes risks in business, in order to benefit from the potential future rewards.
A plan for the development of a business, giving details such as the products to be made, resources needed, and financial forecasts.
What is meant by Business success?
Aims and objectives that relate to areas other than finance. E.g. Social objectives, personal satisfaction, challenge, and control.
A cost which rises as output rises. E.g. Raw materials or packaging.
A measure which could be sales, market share or profit related.
Businesses responding to what consumers want.
What is meant by Cash flow?
A range of products aimed at differing needs and segments.
Goods and services that are bought into one country from another.
Data which is limited in detail but can easily be put into graphs and charts for analysis.
The flow of money into and out of a business over a period of time.
What is meant by Cash inflow (Receipts)?
The advantage one company has over another, or several others.
Money coming into the business. E.g. Revenue, a loan or another source of finance.
The elements of marketing that are designed to meet the needs of the customer. The elements are product, price, place, and promotion.
The characteristics of the population in terms of age and gender.
What is meant by Cash outflow (Payments)?
Where a business locates.
Hardware and software that businesses may use.
Money leaving the business. E.g. Wages, suppliers, loan repayments or advertising.
The goals of a business. These may be financial or non‐financial.
What is meant by Choice?
A range of products aimed at differing needs and segments.
A market which has many competitors.
The person who owns the rights to the franchise.
Money leaving the business. E.g. Wages, suppliers, loan repayments or advertising.
What is meant by Closing balance?
The amount of money left at the end of the current time period.
Where a business and its owners have separate legal identities, meaning shareholders can only lose the original amount they invested into a business.
An experienced business person provides funds for small or medium-sized companies that may be considered too risky for other investors, in return for equity.
When companies produce comparable products or services within the same market.
What is meant by Competition?
When companies produce comparable products or services within the same market.
The skills shown by an entrepreneur.
The amount of products a firm sells over and above the breakeven point.
An attempt to obtain and retain customers by drawing their attention to a business or its products. E.g. Sales promotions, advertising, and public relations.
What is meant by Competitive advantage?
Where a business locates.
A characteristic of the product that makes it different from other similar products being sold in the market.
The advantage one company has over another, or several others.
A product which is out of date and no longer used.
What is meant by Competitive environment?
Money leaving the business. E.g. Wages, suppliers, loan repayments or advertising.
Research which is being collected for the first time.
A market which has many competitors.
Hardware and software that businesses may use.
What is meant by Consumer?
A business organisation that is usually owned by 2-20 people, who have unlimited liability.
The person who uses the product.
A period of time given to a customer between receiving the goods and payment being due.
Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.
What is meant by Consumer income?
The amount a person or household has to spend, after paying tax.
The amount of money left at the end of the current time period.
The characteristics of the population in terms of age and gender.
The broad performance of the UK economy, as measured by GDP growth.
What is meant by Consumer rights?
What the consumer is entitled to by law.
Collecting and analysing data from customers, competitors, and the market in general.
Goods or services that a firm produces in its home market, but sells in a foreign market.
The difference between cash inflows and cash outflows over a period of time.
What is meant by Crowdfunding?
Where a large number of individuals invest into a business project on internet sites such as Kickstarter.
When a person or business sells assets it owns, such as equipment or vehicles it no longer uses, in order to raise finance.
Collecting and analysing data from customers, competitors, and the market in general.
The collection of data that already exists but is then used for a business's own requirements.
What is meant by Customer?
The number of products a business must sell so that its total revenue is the same as its total costs. At this point, the business will make no profit or loss.
The person who buys the product.
A characteristic of the product that makes it different from other similar products being sold in the market.
An area of the market, with no products currently being provided.
What is meant by Customer needs?
A prediction of future finances. E.g. Sales, cash flow or profits.
The amount of products a firm sells over and above the breakeven point.
The characteristics of the population in terms of age and gender.
What the customer wants, these can change over time. E.g. Price, quality, choice or convenience.
What is meant by Customer service?
Having a clear understanding of customer expectations and delivering.
How the product passes from the producer to the consumer.
The goals of a business. These may be financial or non‐financial.
Communicating with customers electronically through things such as a website, social media, and email.
What is meant by Demographics?
How the product passes from the producer to the consumer.
An experienced business person provides funds for small or medium-sized companies that may be considered too risky for other investors, in return for equity.
The characteristics of the population in terms of age and gender.
A way of raising finance through the sale of shares.
What is meant by Digital communication?
Communicating with customers electronically through things such as a website, social media, and email.
The number of people who are looking for work but unable to find any.
The price of one currency in terms of another. E.g. £1=$2.
The number of products a business must sell so that its total revenue is the same as its total costs. At this point, the business will make no profit or loss.
What is meant by Discrimination?
The characteristics of the population in terms of age and gender.
The land, labour, and capital used by entrepreneurs. E.g. Buildings, equipment & staff.
Judging someone based on their age, gender, race, religion or disability.
An identifiable group of people with similar characteristics. This could be split by location, demographics, lifestyle, or income.
What is meant by Dynamic business?
A business organisation that is usually owned by 2-20 people, who have unlimited liability.
Businesses responding to what consumers want.
Judging someone based on their age, gender, race, religion or disability.
The number of products a business must sell so that its total revenue is the same as its total costs. At this point, the business will make no profit or loss.
What is meant by e-commerce?
The amount of money the business has at the start of the current time period.
The use of online systems to sell goods and services.
A measure which could be sales, market share or profit related.
A way of raising finance through the sale of shares.
What is meant by Economic climate?
The broad performance of the UK economy, as measured by GDP growth.
A person who owns a 'share' in a business.
The price of one currency in terms of another. E.g. £1=$2.
The amount a person or household has to spend, after paying tax.
What is meant by Enterprise?
The skills shown by an entrepreneur.
The person who buys the product.
Data which is detailed and contains information about people's feelings and opinions.
With agreement from your bank, taking more out of your account than you actually have, leaving a negative bank balance.
What is meant by Entrepreneur?
Profit that is 'ploughed back' into the business.
A person who owns a 'share' in a business.
A person who organises resources, makes decisions, and takes risks in business, in order to benefit from the potential future rewards.
A business with a single owner, who has unlimited liability.
What is meant by Exchange rate?
The price of one currency in terms of another. E.g. £1=$2.
The flow of money into and out of a business over a period of time.
Communicating with customers electronically through things such as a website, social media, and email.
The good or service a business is selling.
What is meant by Export?
The variety of ways in which customers can pay for a product. Includes contactless payments, apple & android pay, PayPal and more traditional methods.
A way of raising finance through the sale of shares.
The range of products a business sells.
Goods or services that a firm produces in its home market, but sells in a foreign market.
What is meant by Financial aim?
Profit that is 'ploughed back' into the business.
Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.
Costs which do not change with output. E.g. Rent or salaries.
Data which is detailed and contains information about people's feelings and opinions.
What is meant by Fixed cost?
Having a clear understanding of customer expectations and delivering.
Costs which do not change with output. E.g. Rent or salaries.
The amount of money left at the end of the current time period.
The characteristics of the population in terms of age and gender.
What is meant by Focus group?
The return for taking a risk and making it a success.
Where a number of customers are invited to attend a discussion about a product.
The price of one currency in terms of another. E.g. £1=$2.
Communicating with customers electronically through things such as a website, social media, and email.
What is meant by Forecast?
The person who owns the rights to the franchise.
A prediction of future finances. E.g. Sales, cash flow or profits.
Goods and services that are bought into one country from another.
The difference between cash inflows and cash outflows over a period of time.
What is meant by Franchise?
The right given by one business to another to sell goods or services using its name.
Aims and objectives that relate to areas other than finance. E.g. Social objectives, personal satisfaction, challenge, and control.
A cost which rises as output rises. E.g. Raw materials or packaging.
Where a business and its owners have separate legal identities, meaning shareholders can only lose the original amount they invested into a business.
