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Business > Business Vocabs > Flashcards

Business Vocabs Flashcards

1
Q

Productivity

A

is the outputs measured against the inputs that used to create it

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2
Q

Buffer inventory

A

The level of inventories that is held to deal with uncertainty in customer demand and deliveries of supplies

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3
Q

Lean production

A

is the term used for those techniques that businesses used to cut down on waste and therefore increase efficiency, for example, by reducing the time it takes for a product to developed and become available for sale

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4
Q

Kaizen

A

is a Japanese term meaning “continuous improvement” through the elimination of waste

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5
Q

Just-in-time

A

is a method that involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finished product

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6
Q

Job production

A

is where a single product is made at a time

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7
Q

Batch production

A

is where the quantity of a product is made, then a quantity of another item will be produced

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8
Q

Flow production

A

is where a large quantity of a product are produced in a continuous process. It is sometimes referred to as “Mass production”.

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9
Q

Fixed costs

A

are costs which do not vary in the short run with the number of items sold or produced. They have to be paid whether the business is making any sales or not. They are also known as overhead costs

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10
Q

Variable costs

A

are costs that vary directly with the number of items sold or produced

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11
Q

Total costs

A

are fixed and variable costs combined

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12
Q

Average cost per unit

A

is the total cost of production divided by total outputs (sometimes referred to as ‘unit cost’)

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13
Q

Economies of scale

A

are factors that lead to a reduction in average costs as a business increases in size

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14
Q

Diseconomies of scale

A

are factors that lead to an increase in average costs as a business grows beyond a certain size

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15
Q

Break-even level of output

A

is the quantity that must be produced/sold for total revenue to equal the total costs (also known as break-even point)

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16
Q

Break-even charts

A

are graphs that show how costs and revenues of a business change with the sales. They show the level of sales the business must make in order to break even.

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17
Q

Revenue

A

The income during a period of time from the sale of goods or services. Total revenue = quantity sold x price.

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18
Q

Break-even point

A

The level of sales in which total costs = total revenues

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19
Q

Margin of safety

A

the amount by which sales exceed break-even point

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20
Q

Contribution of a product

A

its selling price less its variable cost

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21
Q

Quality

A

means to produce a good or service that meets customer expectations

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22
Q

Quality control

A

is the checking for quality at the end of the production process, whether it is a production of a product or service. It uses quality inspectors as a way of finding any faults.

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23
Q

Quality assurance

A

is the checking of quality standards throughout the production process by employees, whether it is the production of a product or service.

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24
Q

Total Quality Management

A

is the continuous improvement of products and processes by focusing on quality at each and every stage of production

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25
Q

Start-up capital

A

is the finance needed by a new business to pay for essential non-current (fixed) assets and current assets before it can begin trading

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26
Q

Working capital

A

is the finance needed by a business to pay its day-to-day costs

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27
Q

Capital expenditure

A

is the money spent on non-current (fixed) assets that will last more than one year

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28
Q

Revenue expenditure

A

is the money spent on day-to-day expenses that do not involved purchase of a long term assets, for example, rents or wages

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29
Q

Internal finance

A

is obtained from within the business itself

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30
Q

External finance

A

is obtained from sources outside and separate from the business

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31
Q

Micro-financing

A

is providing financial services - including small loans - to poor people not served by traditional banks

32
Q

Crowdfunding

A

is funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet

33
Q

Cash flow

A

of a business is the cash inflows and outflows over a period of time

34
Q

Cash inflows

A

are the sum of money received by a business over a period of time

35
Q

Cash outflows

A

are the sum of money paid out by a business over a period of time

36
Q

Cash flow cycle

A

shows the stages between paying out money for labor and materials and so on, and receiving money from the sale of goods

37
Q

Profit

A

is the surplus after total costs have been subtracted from revenue

38
Q

Cash flow forecast

A

an estimate of future cash inflows and outflows of a business, usually on a month-by-month basis. This then shows the expected cash balance at the end of each month.

39
Q

Net cash flow

A

is the difference, each month, between cash inflows and cash outflows

40
Q

Closing cash (bank) balance

A

the amount of cash held by a business at the end of each month. This then becomes next month’s opening cash balance.

41
Q

Opening cash (bank) balance

A

the amount of cash held by a business at the start of each month

42
Q

Working capital

A

The capital available for a business in the short term to pay for day-to-day expenses

43
Q

Accounts

A

The financial records of a firm’s transactions

44
Q

Accountants

A

Are the professionally qualified people who have responsibility for keeping accurate accounts and for producing final accounts

45
Q

Final accounts

A

Are produced at the end of the financial year and give details of the profit or loss made over a year and the worth of the business

46
Q

Income statement

A

A financial statement that records the income of a business and all costs incurred to earn that income over a period of time (for example, one year). It is also known as a profit and loss account

47
Q

Revenue

A

Is the income to a business during a period of time from the sale of goods or services

48
Q

Cost of sales

A

Is the cost of producing or buying in the goods actually sold by the business during a period of time

49
Q

Gross profit

A

Made when revenue is greater than the cost of sales

50
Q

Trading account

A

Shows how the gross profit of a business is calculated

51
Q

Net profit

A

The profit made by a business after all costs have been deducted from revenue. It is calculated by subtracting overhead costs from gross profit

52
Q

Depreciation

A

Is the fall in the value of a fixed asset over time

53
Q

Retained profit

A

The net profit reinvested back into a company, after deducting tax and payments to owners, such as dividends

54
Q

Statement of financial position

A

Shows the value of a business’s assets and liabilities at a particular time

55
Q

Assets

A

Are those items of value which are owned by the business. They may be non-current (fixed) assets or (short-term) current assets

56
Q

Liabilities

A

Are debts owed by the business. They may be non-current (fixed) liabilities or (short-term) current liabilities

57
Q

Non-current assets

A

Items owned by the business for more than one year

58
Q

Current assets

A

Are owned by the business and used within one year

59
Q

Non-current liabilities

A

Long-term debts owed by the business, repaid over more than one year

60
Q

Current liabilities

A

Short-term debts owed by the business, repaid less than one year

61
Q

Capital employed

A

Shareholders’ equity plus non-current liabilities and is the total long-term and permanent capital invested in a business

62
Q

Liquidity

A

The ability of business to pay back its short-term debts

63
Q

Profitability

A

The measurement of the profit made relative to either the value of sales achieved or the capital invested in the business

64
Q

Illiquidity

A

Means that the assets are not easily covertible into cash

65
Q

Gross Domestic Product (GDP)

A

The total value of output of goods and services in a country in one year

66
Q

Recession

A

When there is a period of falling GDP

67
Q

Inflation

A

The increase in the average price level of goods and services over time

68
Q

Unemployment

A

Exists when people who are willing and able to work cannot find a job

69
Q

Economic Growth

A

When a country’s GDP increases - more goods and services are produced than in the previous year

70
Q

Balance of payments

A

Records the difference between a country’s exports and imports

71
Q

Real income

A

The value of income, and it falls when prices rise faster than money income

72
Q

Exports

A

Are goods and services sold from one country to other countries

73
Q

Imports

A

Are goods and services bought in by one country from other countries

74
Q

Exchange rate

A

The price of one currency in terms of another

75
Q

Exchange rate depreciation

A

The value of a currency compared with other currencies

Business (2 decks)

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