AQA BUSINESS STUDIES Unit 1 Keywords

This activity will test your knowledge of keywords for Unit 1. These are all terms that you need to know for your Unit 1 exam. Write your definition clearly in the space allocated.

Opportunity Cost The ‘real cost’ of taking a particular action or the next best alternative forgone, i.e. the next best thing you could have chosen but didn’t.

Patent Official document granting the holder the right to be the only user or producer of a newly invented product or process for a specified period.

Stakeholders Any group of individuals with an interest in a business. Includes employees, customers, shareholders and local community.

Limited Liability Situation in which owners of a business are liable for all the debts the business may incur.

Teleworking Working in a location that’s separate from a central workplace, using telecommunication technologies.

Quota Sample Group of respondents comprising several different segments, each sharing a common feature (e.g. age / gender). No. of interviewees in each classification is fixed to reflect their % in the total target population. Interviewees are selected non-randomly by interviewer.

Added Value The process of increasing the worth of resources by modifying them. E.g. if a cake is produced from eggs, flour and butter which cost £1 and the cake sells for £3, then value has been added.

Tertiary Sector Organisations involved in providing services to customers / other businesses. E.g. Hairdressing, financial services, retailing, restaurants, leisure services.

Least Cost Site The business location that allows a firm to minimise its costs (and hence its selling price).

Entrepreneur Individual who has an idea they develop by setting up a new business and encouraging it to grow. They take the the risk & subsequent profits that come with success (or losses that come with failure).

Trademark Signs, logos, symbols or words displayed on a company’s products and advertising. Can include sounds or music which distnguish its brands from those of its competitors.

Partnership A business where two or more people operate for the common goal of making a profit.

Secondary Market Research The use of information that has already been collected for a different purpose.

Enterprise Usually the process by which new businesses are formed and new products / services are created and brought to the market. Led by an entrepreneur.

Public Limited Company Referred to as a PLC. A business with limited liability; a share capital of over £50,000; at least two shareholders, two directors,a qualified company secretary & wide spread of shareholders.

Franchise When a business gives another business the right to supply its product or service.

Stratified Sample A group of respondents selected according to particular features (e.g. age, gender). These groups (and their sizes) are chosen specifically.

Copyright Legal protection against copying for authors, composers and artists.

Factors of Production The four elements used in the production of goods and services: Land, Labour, Capital, Enterprise

Primary Sector Organisations involved in extracting raw materials. For example, oil extraction, farming, fishing, forestry.

Unincorporated Business No distinction between the individual owner and the business itself. Identity of the business and owner is the same. Usually sole traders & partnerships.

USP A feature of a product or service that allows it to be differentiated from other products. E.g. Macbook Air (the thinnest, lightest laptop available on the market).

Business Plan Report describing the marketing strategy, operational issues and financial implications of a business start-up.

SMART Objective An objective set by a business which is: - Specific - Measurable - Achieveable - Realistic - Time specific

Permanent Employee Full or part time employee with an open- ended employment contract with the business - who has extensive obligations to them.

Primary Market Research The collection of information first-hand for a specific purpose.

Random Sample A group of respondents in which member of the target population has an equal chance of being chosen.

Demand Amount of a product / service that consumers are willing and able to buy at any given price over a period of time.

Market Growth The percentage change in sales (volume or value) over a period of time.

Unlimited Liability A situation in which the owners of a business are liable for all the debts a business may incur.

Sole Trader Business owned by one person. The owner may operate alone or may employ others.

Infrastructure The network of utilities, such as transport links, sewerage, telecommunications systems, health services and educational services.

Secondary Sector Organisations involved in processing / refining the raw materials (from primary sector) into finished / semi-finished products. E.g. paper mills, oil refineries, textile or vehicle manufacturing.

Output The finished products resulting from the transformation process.