Business Vocab 5

Question 1

Liquidation

Answer 1

When a business ceases trading and its assets are sold for cash to pay suppliers and other creditors

Question 2

Liquidity

Answer 2

The ability of business to pay its short term debts

Question 3

Limited liability

Answer 3

Potential loss a shareholders has

Question 4

Management by objectives (MBO)

Answer 4

Comparing actual performance and achievemnets against pre set objectives by each department or employee

Question 5

Margin of safety

Answer 5

The amount by which the current output level exceeds the break even level of output

Question 6

Market penetration

Answer 6

Achieving higher market shares in existing markets with existing product

Question 7

Market segment

Answer 7

A subgroup of whole market in which consumers have similar characteristics

Question 8

Market segmentation

Answer 8

The idenification of different groups of customers with common needs within a market

Question 9

Market share

Answer 9

Sales of a a business as a proportion of total market sales

Question 10

Marketing

Answer 10

Identifying and meeting the needs of customers

Question 11

Marketing mix

Answer 11

Product price promotion place efecting marketing for a product

Question 12

Marketing objectives

Answer 12

The goals set for market business to achieve goals

Question 13

Mass customisation

Answer 13

The use of computer aided technology for customised products

Question 14

Mass marketing

Answer 14

Selling standardised products or ranges of products in the same way to whole market

Question 15

Matrix structure

Answer 15

Creates project terms that cut across traditional functional departments

Question 16

Merger

Answer 16

2 businesses getting together by agreemnet of owners and managers

Question 17

Mission statement

Answer 17

A businesses core aims to motivate meployees

Question 18

Mixed economy

Answer 18

Owned and controlled by both prvate and public sectors

Question 19

Nationalistaion

Answer 19

The transfer to privately owned business to government ownership and control

Question 20

Net present value (NPV)
Net realisable value (NRV)

Answer 20

Estimated cash flow resulting from an investment
Inventory can. Be sold minus the cost of selling it

Question 21

Niche marketing

Answer 21

Deferentiated products to suit a segment

Question 22

Non-current assets

Answer 22

Kept used by business for more than one year

Question 23

Non-current liabilities

Answer 23

Value of debts of the business that are payable after more than one year

Question 24

Offshoring

Answer 24

Relocation of a business process from one country to another

Question 25

Operating profit margin

Answer 25

A ratio that compares operating profit for the year with revenue

Question 26

Outsourcing

Answer 26

Using another business to undertake a part of the production process rather than doing it within the business using the firms own employees

Question 27

Overdraft

Answer 27

A credit that a bank agrees can be borrowed by a business up to an agreed limit as and when required