Business Unit 1 Flashcards
What are all the functional areas in business?
Finance Marketing Sales Human Resources Customer Service Product Purchase and Procurement Business Support Services Research and Development Operations Management
What are all the types of ownership in business?
Sole Trader Partnership Public limited company Private limited company Government-owned Charity/No-profit Community Interest Company
Define economy
The production of goods and services/supply of money in a country or region
What is a centralised structure?
A business structure with hierarchy and tiers
What is a decentralised structure?
A business structure with no hierarchy
Define semi-variable cost
Costs compose with a mixture of both fixed and variable costs
Define margin of safety
Amount of sales above the break-even point
What is net-cash flow?
Difference between inflows and outflows in a given period
What is a cashflow forecast?
A prediction of the flow of money going into and out of a business
What is a cashflow statement?
The actual flow of money going in and out of a business
What is a statement of financial position?
A snapshot of the value of an organisation
Define non-current assets
Assets which take more than 1 year to be converted into cash
Define current liabilities
Debts which have to be paid within 1 year
Define and give examples of tangible assets
Assets with physical form e.g. buildings , land , raw materials
Define and give examples of intangible assets
Assets with no physical form e.g. trademark , logo , copy-right
