Business Terms AQA As Level Exam Questions
And Answers Verified 100% Correct
Bank loan - ANSWER A fixed amount loan from a bank which is
generally used to finance long-term assets
Bank overdraft - ANSWER Borrowings from a bank on a current
account which are payable on demand
Break even point - ANSWER The point at which the total sales of a
business equal total costs - the business is making neither a profit
nor a loss
Business plan - ANSWER A detailed description of a new or existing
business, including the company's strategy, aims and objectives,
marketing & financial plan
Business objectives - ANSWER A stated goal or target of a business
Contribution - ANSWER The difference between total sales and total
variable costs
Contribution per unit - ANSWER A key number for breakeven
analysis:
the difference between selling price per unit and variable cost per
unit.
Demand - ANSWER The amount of a product or service that
customers are willing and able to pay at a given time
,Demographic - ANSWER Defining a market in terms of
socialeconomic such as segmentation age, income, class etc
Elasticity of demand - ANSWER The responsiveness of demand to a
change in price or incomes
Enterprise - ANSWER The process by which new businesses are
formed in order to offer products and services in a market
Entrepreneur - ANSWER An individual who sets up and runs a new
business and takes on the risks associated with the business
Expenditure budget - ANSWER The budget which sets out the
expected costs to be incurred by the firm, usually split into various
categories (e.g. production, marketing, administration)
Fixed costs - ANSWER Costs that do not vary with the level of output -
e.g. rent, salaries
Full time employee - ANSWER An employees who works more than 30
hours a week in a business
Franchiser - ANSWER The owner of a business format (franchise)
which is licensed out to other people or businesses (franchisees)
Income budgets - ANSWER The budget which sets out estimates of
the likely demand for and value of the firm's sales
Inputs - ANSWER The resources (land, labour, capital, enterprise) that
go into producing goods and services
Margin of error - ANSWER a small amount that is allowed for in case
of miscalculation or change of circumstances.
, Market - ANSWER Any place (e.g. physical, electronic) where buyers
and sellers come together with a view to exchanging transactions
Market growth - ANSWER The percentage growth in the size of the
market, measured over a specific period
Market research - ANSWER The process of planning, collecting, and
analysing data relevant to help make marketing decisions
Market segmentation - ANSWER The process of dividing a market into
smaller sections (segments) which contain customers with similar
needs and wants
Market share - ANSWER The share of the total market that is owned
by a particular business, product or brand
Market size - ANSWER The total value or quantity of demand in a
specific market over a specific period of time. Can be measured in
value terms (e.g. sales) or in terms of quantities (e.g. units) bought or
sold.
Niche market - ANSWER A smaller part of a larger market in which
customers have more specific needs and wants
Opportunity cost - ANSWER The cost of a decision as measured by
the benefits - the next best alternative
Patent - ANSWER The right to be the only user of producer of a
specified product or process
And Answers Verified 100% Correct
Bank loan - ANSWER A fixed amount loan from a bank which is
generally used to finance long-term assets
Bank overdraft - ANSWER Borrowings from a bank on a current
account which are payable on demand
Break even point - ANSWER The point at which the total sales of a
business equal total costs - the business is making neither a profit
nor a loss
Business plan - ANSWER A detailed description of a new or existing
business, including the company's strategy, aims and objectives,
marketing & financial plan
Business objectives - ANSWER A stated goal or target of a business
Contribution - ANSWER The difference between total sales and total
variable costs
Contribution per unit - ANSWER A key number for breakeven
analysis:
the difference between selling price per unit and variable cost per
unit.
Demand - ANSWER The amount of a product or service that
customers are willing and able to pay at a given time
,Demographic - ANSWER Defining a market in terms of
socialeconomic such as segmentation age, income, class etc
Elasticity of demand - ANSWER The responsiveness of demand to a
change in price or incomes
Enterprise - ANSWER The process by which new businesses are
formed in order to offer products and services in a market
Entrepreneur - ANSWER An individual who sets up and runs a new
business and takes on the risks associated with the business
Expenditure budget - ANSWER The budget which sets out the
expected costs to be incurred by the firm, usually split into various
categories (e.g. production, marketing, administration)
Fixed costs - ANSWER Costs that do not vary with the level of output -
e.g. rent, salaries
Full time employee - ANSWER An employees who works more than 30
hours a week in a business
Franchiser - ANSWER The owner of a business format (franchise)
which is licensed out to other people or businesses (franchisees)
Income budgets - ANSWER The budget which sets out estimates of
the likely demand for and value of the firm's sales
Inputs - ANSWER The resources (land, labour, capital, enterprise) that
go into producing goods and services
Margin of error - ANSWER a small amount that is allowed for in case
of miscalculation or change of circumstances.
, Market - ANSWER Any place (e.g. physical, electronic) where buyers
and sellers come together with a view to exchanging transactions
Market growth - ANSWER The percentage growth in the size of the
market, measured over a specific period
Market research - ANSWER The process of planning, collecting, and
analysing data relevant to help make marketing decisions
Market segmentation - ANSWER The process of dividing a market into
smaller sections (segments) which contain customers with similar
needs and wants
Market share - ANSWER The share of the total market that is owned
by a particular business, product or brand
Market size - ANSWER The total value or quantity of demand in a
specific market over a specific period of time. Can be measured in
value terms (e.g. sales) or in terms of quantities (e.g. units) bought or
sold.
Niche market - ANSWER A smaller part of a larger market in which
customers have more specific needs and wants
Opportunity cost - ANSWER The cost of a decision as measured by
the benefits - the next best alternative
Patent - ANSWER The right to be the only user of producer of a
specified product or process
