Unit 1.4

Marketing mix- the combination of factors which help the business to take into account customer needs when selling a product- the 4 Ps.

Price- the amount of money customers have to give up to acquire a product.

Product- a good or service produced by a business or organisation and made available to customers for consumption.

Promotion- communication between the business and customer, making the customer aware that the product is for sale.

Place- the way in which a product is distributed- how it gets from the producer to the consumer.

Sole trader- the only owner of a business which has unlimited liability.

Unlimited liability- a legal obligation on the owner of a business to settle all debts of the business.

Limited liability- when shareholders of a company are not personally liable for the debts of the company: the most they can do is lose is the value of their investment in the shares of the company.

Companies- businesses whoose shareholders have limited liability.

Records- evidence of what has happened in the past; records could be kept in paper form or in computer files for example.

HM Revenue & Customs- the government authorities in the UK responsible for collecting tax.

VAT (Value Added Tax)- a tax on the value of sales: it is paid by businesses to the government.

Income tax- a tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.

National Insurance contributions (NICs)- a tax on the earnings of workers; Employers' National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay NICs on their earnings.

Corporation tax- a tax on the profits of limited companies.

Customer service- the experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.

Customer satisfaction- a measure of how much products meet customers' expectations.

Repeat purchases- orders or sales that occur from customers who have bought the product or service in the past.

Job applicant- a person who shows they would like to be considered for appointment to a particular job with a business.

Job description- document that describes the duties of a worker and his or her status in the organisation.

Peron specification- a profile of the type of person needed for a job- their skills and qualities.

Application form- document to be filled in with personal details.

Curriculum vitae- a brief list of the main details about a person, including name, address, qualifications and experience.

Motivation- in work, the desire to complete a task and meet the needs of a business consistently.