Commercial Awareness Worksheet

The difference between total sales and total costs
The point at which the total sales of a business equal total costs - i.e. the business is making neither a profit nor a loss
A detailed plan of income and expenses expected over a certain period of time
Amounts incurred by a business as a result of its trading operations
Any place (e.g. physical, electronic) where buyers and sellers come together with a view to exchanging transactions
The right to be the only user or producer of a specified product or service
The resources (land, labour, capital, enterprise) that go into producing goods and services
The amount of a product or service that customers are willing and able to pay at a given time
The movements of cash into (“inflows”) and out of (“outflows”) a business
The share of the total market that is owned by a particular business, product or brand. Usually expressed in percentage terms.
The income or sales that a business achieves in a period. Calculated by multiplying selling price per unit x units sold.
A stated goal or target of a business (it can be more than one!)
Costs that do not vary with the level of output (e.g. rent, wages)
What does PLC stand for?
Defining a market in terms of social-economic factors such as segmentation age, income, class etc
What does LTD stand for?
A detailed description of a new or existing business, including the company’s strategy, aims and objectives, marketing & financial plan
An individual who sets up and runs a new business and takes on the risks associated with the business
Borrowings from a bank on a current account which are payable on demand
A process through which a business increases the worth of the resources included in production so that customers perceive the product to be worth more than the cost of the inputs
The person who ultimately uses or consumes a product
Any person or organisation which buys or is supplied with a product
A one person business with unlimited liability for the debts of that business