Essential Business Terms and Definitions

Economy14 Jun 20263.65 KB

Market Research and Data Analysis

Qualitative Data: Data that consists of opinions and views.
Qualitative Research: Market research concerned with collecting data on attitudes, opinions, beliefs, intentions, etc.
Sample: In market research, a sample is a subset of a population. Sampling is the process of taking and analysing a research sample.
Secondary/Desk Research: Research from what has already been produced.
The Boston Matrix: A way to analyse a product portfolio.

Return: The rewards to an enterprise—for example, profit or satisfaction.
Revenue: The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit by units sold.
Share Capital: The finance invested in a business (limited company) by the shareholders; part of the equity capital of a firm.
Total Costs: The total of variable and fixed costs in a business.
Trade Credit: When a business promises to pay a supplier later for goods received now.
Variable Costs: Costs that vary directly in proportion to output (e.g., materials or pay related to amounts produced or sold).
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 its day-to-day activities.

Recruitment: The process of hiring new employees for a business.
Remuneration: The way a worker is paid.
Staff Retention: Keeping employees in the same job instead of firing them.
Tall Structure: Businesses that have lots of layers within the business structure.
Time Rates: Employees paid by the amount of time they work.

Risk: The probability or chance that hoped-for outcomes will not occur.
Skimming Pricing: Setting a high price for a new product when people are willing to pay, then decreasing the price later.
Social Enterprise: A business that has objectives other than making profit. Part of a group of organisations in the "not-for-profit" sector.
Sole Trader: A business owned by one person.
Sole Trader: A one-person business with unlimited liability for the debts of that business.
Stakeholders: Those that have a stake or interest in the performance of a business. Internal stakeholders are people within the business that have a stake or interest in the performance of a business.
Supplier: A business that provides goods and services to other firms.
Supply: The amount of product a business is willing to sell.
Total Quality Management: Making sure the quality of the products is good through the whole process of production.
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.