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Business Studies > Business terms > Flashcards

Business terms Flashcards

1
Q

added value

A

selling price - cost of materials

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2
Q

appreciation of currency

A

rise in exchange rate / value

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3
Q

autocratic

A

managers take decisions without consulting employees

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4
Q

average cost

A

total cost / total units

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5
Q

balance sheet

A

shows value of business’s assets/liabilities on a particular date

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6
Q

batch production

A

made in groups of certain amount

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7
Q

board of directors

A

senior managers responsible for strategic decisions

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8
Q

brand

A

unique name/image/symbol that distinguishes a business from its competitors

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9
Q

brand image

A

reputation of business held by consumers

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10
Q

break-even

A

level of output at which total revenue = total costs, no loss or profit

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11
Q

business cycle

A

fluctuations in economic activity over time, growth boom recession slump

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12
Q

business objective

A

statement of a specific target that a business works towards

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13
Q

business partnership

A

two people jointly agree to own and run a business

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14
Q

capital employed

A

value of shareholders funds / owner’s equity + noncurrent liabilities

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15
Q

capital intensive

A

machinery is key resource, not labour

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16
Q

cash flow

A

amount of cash moving in and out of business over period of time

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17
Q

cash flow forecast

A

estimate of cash inflows and outflows on a monthly basis

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18
Q

chain of command

A

structure within a business in which instructions are passed down from senior management to lower levels of management

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19
Q

cost of sales

A

cost per unit x number of output

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20
Q

cost plus pricing

A

price is set by adding a fixed percentage of profit to the cost of making a product

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21
Q

crowd-funding

A

large number of people contribute small amounts of money to raise finance for a project

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22
Q

current assets

A

assets owned by a business that can be quickly converted into cash

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23
Q

customer loyalty

A

chances of return purchases

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24
Q

delegation

A

giving a subordinates the authority to perform a task / make a decision

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25
Q

dismissal

A

termination of employee by employer for either breaking company rules or not meeting requirements

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26
Q

dividends

A

payment of shareholders from profits of a company

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27
Q

e-commerce

A

buying and selling over the internet

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28
Q

economic boom

A

period of time when GDP and level of economic activity rising rapidly

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29
Q

economies of scale

A

reduction in average costs due to a large scale of operations

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30
Q

economy in recession

A

sustained reduction in GDP

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31
Q

entrepreneur

A

a person that organizes, manages, operates and takes the financial risk of opening a new business venture

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32
Q

exchange rate

A

value of one currency in terms of another

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33
Q

financial bonus

A

extra pay provided for performance exceeding the target

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34
Q

fixed costs

A

costs that do not change with output

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35
Q

flow production

A

large quantities of a standardised product are produced on a continuous production line

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36
Q

focus group

A

people who have similar characteristics to the target market give their opinions on a product / service

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37
Q

franchise

A

a business agreement based upon an existing brand name, in which the franchisee purchases a license fro ma franchiser, to sell the franchise’s products under its name

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38
Q

globalisation

A

process by which countries are connected due to the movement of goods, services, people and capital

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39
Q

GDP

A

total value of goods and services produced in a country in one year

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40
Q

import quota

A

limit on the number of goods allowed into a country

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41
Q

import tariff

A

taxes on goods brought into a country

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42
Q

income statement

A

a financial document that records the revenue, costs and profit for a given period of time

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43
Q

induction training

A

introduction given to new employees explaining the methods of the business and introducing them to other workers

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44
Q

inefficient

A

input:output ratio is low, not productive

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45
Q

internal communication

A

messages between employees working in the same organisation

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46
Q

inventory

A

amount of raw materials, work in progress, and finished goods, held by a business intended for sale

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47
Q

job description

A

outlines of responsibilities and duties expected to be done by someone employed to do a specific job

48
Q

job enrichment

A

adding tasks that require higher skill / more responsibility

49
Q

job production

A

single specialised product made at a time

50
Q

joint venture

A

two or more businesses agree to start a new project together, sharing risk, capital, profits and resources

51
Q

labour intensive

A

labour resource input is key resource

52
Q

level of hierarchy

A

level of authority and responsibility in an organisation / business structure

53
Q

limited company

A

business which has a separate legal identity to its owners

54
Q

limited liability

A

liability of shareholders in a company is only limited to the amount they invested

55
Q

liquidity

A

ability of a business to pay its short term debts and current liabilities using its current assets

56
Q

made redundant

A

worker is no longer required through no fault of their own

57
Q

managing director

A

overall senior director with general responsibility for the business as a whole

58
Q

margin of safety

A

current level of output - break even output

59
Q

market economy

A

an economy in which the government has no control over the factors of production

60
Q

market orientated company

A

business that focuses on the needs and requirements of its customers through analysis of market research data, then developing a product

61
Q

market research

A

process of collecting, recording, analysing and interpreting information about the customers, competitors and market for a product

62
Q

market segment

A

identifiable sub-group of a whole market in which consumers have similar characteristics or preferences

63
Q

market share

A

business sales / total market sales x 100

64
Q

marketing

A

identifying and anticipating customer wants and providing it

65
Q

marketing budget

A

financial plan for the marketing of a product for a specified period of time

66
Q

marketing mix

A

blend of price, promotion, product and place, designed to attract customers

67
Q

mass market

A

selling the same product to the whole market

68
Q

micro-finance

A

financial loans to poor people not served by traditional banks

69
Q

motivation

A

reason why employees want to work efficiently for the business

70
Q

multinational company

A

business with operations in more than one county

71
Q

net cash flow

A

cash inflow - cash outflow per month

72
Q

net profit

A

total revenue - total costs

73
Q

niche market

A

highly specialised subpart of a larger market

74
Q

non-current assets

A

resources owned by a business which will be used for over a year

75
Q

non-current liabilities

A

debts of a business payable after more than a year

76
Q

off-the-job training

A

training away from workplace by specialist trainers

77
Q

on-the-job training

A

training which involves watching a more experienced worker doing the job in the workplace

78
Q

opportunity cost

A

benefit that could have been gained by an alternative use of the same resource

79
Q

organisational structure

A

number of levels of management and divisions of responsibility within a business

80
Q

overdraft

A

loan payable within 12 months

81
Q

paid by time rate

A

receive a set amount of pay every hour worked

82
Q

partnership

A

2 or more people who agree to own and run a business

83
Q

piece rate

A

paid according to number of output produced

84
Q

pressure group

A

group formed by people with a common interest to take action to influence business decisions and government policies

85
Q

price elastic

A

% change in demand > % change in price

86
Q

primary market research

A

collection of new data about potential and existing customers

87
Q

primary sector

A

extraction of raw materials

88
Q

private limited company

A

business whose shares only sold to family and friends

89
Q

private sector

A

business activities are owned by individuals or groups of individuals

90
Q

product orientated

A

business that focuses on making the product right then tries to find customers to buy it

91
Q

productivity

A

output / input

92
Q

public corporation

A

business that is owned and controlled by the government/state

93
Q

public limited company

A

business whose shares can be sold to the general public

94
Q

quality assurance

A

checking standards throughout production process at every stage

95
Q

quality control

A

checking of goods at the end of the production process

96
Q

retained profit

A

net profit reinvested back into business after tax and dividend

97
Q

ROCE

A

profit / capital employed x 100

98
Q

revenue

A

quantity sold x price per unit

99
Q

rising inflation

A

increase in general prices over time

100
Q

secondary market research

A

information about the market or competition that is already available

101
Q

shareholder

A

owners of a limited company

102
Q

social enterprise

A

business with both social objectives and aim to make a profit

103
Q

sole trader

A

unincorporated business owned by one person

104
Q

span of control

A

number of subordinates working and reporting directly to a manager

105
Q

specialisation

A

work divided so each worker concentrates on a specific task and becomes expert at it / when people and businesses focus on what they’re best at

106
Q

stakeholder group

A

group of people with a direct interest in the performance and activities of a business

107
Q

sustainable development

A

business activity that has a positive overall impact on the environment and its stakeholders, ensuring its survival in the future

108
Q

tertiary sector

A

industry which provides services to consumers

109
Q

maturity stage

A

peak level of sales

110
Q

total cost

A

fixed/indirect costs + variable/direct costs

111
Q

trade receivables

A

amount of money owed by customers for goods bought on credit terms

112
Q

trade union

A

group of workers who join together to ensure their interests are protected

113
Q

variable cost

A

costs which change directly with the number of items produced

114
Q

very competitive

A

market with a large number of businesses selling similar products

115
Q

wholesaler

A

someone that buys and stores large quantities of several producers’ goods then breaks it into bulk deliveries to supply retailers with smaller quantities

116
Q

working capital

A

current assets - current liabilities

Business Studies (5 decks)

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