Bus Cards 11

Question 1

Advertising

Answer 1

A method of communicating information about the product; the business pays for advertising time/space.

Question 2

Aim

Answer 2

The intention to reach a goal.

Question 3

Air pollution

Answer 3

The presence or introduction of harmful substances into the air causing disease, allergies or damage to humans, animals, plants or the built environment.

Question 4

Asset

Answer 4

Something the business owns; it has a value.

Question 5

Average rate of return

Answer 5

The average profit for the year as a percentage of the original investment. Average rate or return = average return per annum / initial  100

Question 6

Boston matrix

Answer 6

tool for analysing the contribution made by each product in a business’ product portfolio. It plots each product’s position according to its market share and the rate of growth of the market.

Question 7

Brand image
The consumers’ perce

Answer 7

The consumers’ perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.

Question 8

Break-even chart

Answer 8

A diagrammatic representation of the costs and revenue for a product; it plots total costs against total sales revenue, showing the break-even point where they cross.
Break-

Question 9

Buffer stock

Answer 9

stock of raw materials held in reserve to protect the production process from unforeseen shortages.

Question 10

Business plan

Answer 10

A detailed statement of how the business intends to operate, either at start-up or during a given period of time. Business plans are based on forecasts and so cover only a short time.

Question 11

Cash

Answer 11

Money that the business has in cash or at the bank.

Question 12

Cash flow forecast

Answer 12

A financial planning tool that estimates the money coming into and going out of the business on a month-by-month basis; it allows the business to predict times when additional finance may be needed to maintain liquidity.

Question 13

Cash inflow

Question 14

Cash outflow

Answer 14

Money paid out by the business to fund its operations or investment activities.

Question 15

Chain of command

Answer 15

The line through the hierarchy that shows who is responsible for whom from top to bottom of an organisation.

Answer 16

The route the ownership of the product transfers from the seller to the buyer; it may be a single transaction or pass through others such as wholesalers, distributors, agents and retailers.

Question 17

Closing balance

Question 18

Closing balance

Question 19

Commission

Question 20

Competitive pricing
Setting the price of a product so that

Question 21

Consumer law
Laws designed to ensure

Question 22

Consumer spending

Question 23

Contracts of employment

Question 24

.
Cost

Answer 24

The money spent by businesses

Question 25

Cost-plus pricing

Answer 25

Setting the price of a good or service at an amount higher than the cost of

Question 26

Customer

Question 27

Delayering

Question 28

Delegation