Stock market Key Terms

Business key terms Business: an active that requires the organization of resources to achieve a reward, whilst running a risk.
Entrepreneur: an Individual with an Idea for a business. Franchise: the legal right to use the name and logo of an existing firm and sell the same products/services. Franchiser- the person selling it, for example, McDonald’s.
Franchisee- the person buying it, for example sad’s. Social enterprise: an activity that achieves a reward for a society. Aim: A stated target for the future. E. G. A new business might have the aim to survive its first year of riding.

A business objective: A clearly defined target that the organization sets Itself to achieve over a certain period of time. Helps achieve the overall aim. Stakeholders: An individual or group interest in a business e. G. Shareholders, owners, customers, competitors, employees. Risk: the potential for loss but rewards in business make it a calculated gamble.
Uncertainty: Not knowing the future or what is going to happen. Sole traders: The simplest form of business is typically an individual operating alone- a sole trader. However, a sole trader can actually employ people and still be classified as a sole trader.
The Important fact Is that only one person Is responsible for everything.
Partnership: In a partnerships two are more people (Max 20) share risk, cost and responsibilities. The partners take shares in the profits and a share of the decision making although this might not be an equal share. Though they are Jointly responsible for any debts.
Unlimited liability: unincorporated businesses such as sole traders and partnerships have unlimited reliability, which means owners are expansible for all the business’s debts. Public Limited company (PL): trades on the stock market, the public can buy shares.
Private limited company (Ltd): sells shares privately with permission of owner to known individuals Incorporation: the process of forming a limited company such as a private limited company or Pl. It means that the business exist legally. Limited liability: investors (shareholders) in a limited company can only lose their investment in the business if it fails; they cannot be forced to sell off possessions to pay back debt. Logistics: the process of buying, nagging, and delivering goods, from the point of the manufacture to the end customer.
Market: where the buyer and seller come together to exchange goods or services for money. Today this may not mean face-to-face meeting, but could be carried out over the internet or telecommunication method. Market research- research that enables a firm to find out about its market, it’s customers and its potential customers . Internet research: using information that has already been published on the internet to gather information about the market or firm’s product or services Telephone river: a series of set questions delivered over the telephone to customers as a method of primary research.
Supplier feedback: gathering information from companies that supply products or services on their forecast for what Is likely to happen In the market In the future. Customer feedback: formal or Informal groups: In-depth discussion with a small group of customers (8-10), which probes their feelings towards a product or service. Producer: A firm that supplies goods or services Retailers: Shops that sell goods/services to the final consumer Cash Flow: The flow of none into and out of a business in a given period of time.
Cash: money that the business has available to it straight away, such as money in its bank account.
Forecast: a technique where the business attempts to estimate futures sales, cash flow or other financial variables. Cash Flow Forecast: a prediction of a business’s future cash inflows and outflows, showing the closing balance. Job production: making a one off, specialized products for each customer Batch production: groups of identical items that pass through different stages of the production process at the same time.
Operational efficiency: producing goods and services to an acceptable standard with a few resources as possible to keep costs per unit low.
Related: 
Unit cost: the average cost of making each unit Robot: A computer controlled machine which is able to perform a physical task. Computerized stock controlled programs: the use of computers to keep records of all stocks and recorder necessary stock automatically.
Computer aided design(CAD): using basic computer tools to design products such as buildings and clothes.
Information communication technology (CIT):The use of electronic technology to ether, store, process and communicate information.
Quality products: a good or service that meets customers’ expectations and is therefore fit for purpose’ Customer expectations: the minimum quality standards for product or service that is acceptable to consumers. Customer service: providing services to customers before, during and after purchase to standards that meet their expectations.
Consumer Protection: Laws that protect the interest of consumers when buying goods or services. E-commerce- The buying and selling of goods and services over the internet

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