a level

Question 1

Stakeholders

Answer 1

Those with an interest in the way that a business operates.

Question 2

Statement of financial position

Answer 2

Reports the assets, liability and equity of a business on a specific date; formerly known as the balance sheet.

Question 3

Styles of management

Answer 3

The methods used by those in leadership roles to achieve the most effective outcomes from the employees for whom they are responsible.

Question 4

Supply chain

Answer 4

The network of organisations, people, activities, information and resources that take the product/service from supplier to customer.

Question 5

Survival

Answer 5

The capacity of a business to stay in business. It is dependent on the business selling sufficient amounts of its goods/services to cover all its costs.

Question 6

Sustainability

Answer 6

The process of operating without damaging the environment or depleting natural resources.

Question 7

Tall organisational structure

Answer 7

An organisational structure with a narrow span of control and many levels of hierarchy (a long chain of command).

Question 8

Target market

Answer 8

The particular group of customers to which a business aims to sell its product; a particular market segment.

Question 9

Technical economies of scale

Answer 9

The benefits that large businesses gain from having the funds to invest in expensive machinery that brings cost savings.

Question 10

Telesales

Answer 10

Attempting to sell a good/service by making the initial contact by telephone

Question 11

Tertiary industry

Answer 11

A business that provides services to consumers or other businesses

Question 12

Total costs

Answer 12

All the costs involved in producing goods/services. Total costs = fixed costs + variable costs

Question 13

Total quality management (TQM)

Answer 13

A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product.

Question 14

Trade credit

Answer 14

The process of buying items from a supplier and paying for them later; for example, 30 days after invoice date.

Question 15

Trade descriptions

Answer 15

Protecting customers from false or misleading descriptions about products or their prices.

Question 16

Traffic congestion

Answer 16

The effects of overuse of transport networks, for example slower speeds, traffic queues and longer journey times

Question 17

Training

Answer 17

Employees learn the skills and techniques needed to do the job or to prepare for a new role.

Question 18

Unique selling point (USP)

Answer 18

The key benefit of a good/service; it differentiates the product from others and will be the focus of advertising and promotion.

Question 19

Unit cost

Answer 19

The average cost of each unit. Unit cost = total cost ÷ quantity

Question 20

Unlimited liability

Answer 20

When the owner(s) are responsible for all the debts of the business. Their personal funds would be used to settle the business’ debts if the business’ funds were insufficient.

Question 21

Variable costs

Answer 21

The costs that change as the business’ output changes.

Question 22

Wage

Answer 22

A method of paying employees for their work based on an hourly, weekly or piece of work basis, usually paid weekly or monthly.

Question 23

Wants

Answer 23

Things that people would like to have; not limited to the things they need to survive.

Question 24

Waste

Answer 24

The unwanted material left over from the production process; it may have little or no value and the business may have to pay for its disposal.

Question 25

Wholesaler

Answer 25

A business or person that buys goods in large quantities from producers, stores them in warehouses and sells them on to retailers.

Question 26

Word of mouth

Answer 26

Personal recommendations from satisfied customers to prospective customers.

Question 27

Zero-hour contract

Answer 27

A contract of employment where the employer is not obliged to provide any minimum hours of work; the employee is not obliged to accept any work that is offered.