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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
Start-up capital
is the finance needed by a new business to pay for essential non-current (fixed) assets and current assets before it can begin trading
26
Working capital
is the finance needed by a business to pay its day-to-day costs
27
Capital expenditure
is the money spent on non-current (fixed) assets that will last more than one year
28
Revenue expenditure
is the money spent on day-to-day expenses that do not involved purchase of a long term assets, for example, rents or wages
29
Internal finance
is obtained from within the business itself
30
External finance
is obtained from sources outside and separate from the business
31
Micro-financing
is providing financial services - including small loans - to poor people not served by traditional banks
32
Crowdfunding
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
Cash flow
of a business is the cash inflows and outflows over a period of time
34
Cash inflows
are the sum of money received by a business over a period of time
35
Cash outflows
are the sum of money paid out by a business over a period of time
36
Cash flow cycle
shows the stages between paying out money for labor and materials and so on, and receiving money from the sale of goods
37
Profit
is the surplus after total costs have been subtracted from revenue
38
Cash flow forecast
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
Net cash flow
is the difference, each month, between cash inflows and cash outflows
40
Closing cash (bank) balance
the amount of cash held by a business at the end of each month. This then becomes next month's opening cash balance.
41
Opening cash (bank) balance
the amount of cash held by a business at the start of each month
42
Working capital
The capital available for a business in the short term to pay for day-to-day expenses
43
Accounts
The financial records of a firm's transactions
44
Accountants
Are the professionally qualified people who have responsibility for keeping accurate accounts and for producing final accounts
45
Final accounts
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
Income statement
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
Revenue
Is the income to a business during a period of time from the sale of goods or services
48
Cost of sales
Is the cost of producing or buying in the goods actually sold by the business during a period of time
49
Gross profit
Made when revenue is greater than the cost of sales
50
Trading account
Shows how the gross profit of a business is calculated
51
Net profit
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
Depreciation
Is the fall in the value of a fixed asset over time
53
Retained profit
The net profit reinvested back into a company, after deducting tax and payments to owners, such as dividends
54
Statement of financial position
Shows the value of a business's assets and liabilities at a particular time
55
Assets
Are those items of value which are owned by the business. They may be non-current (fixed) assets or (short-term) current assets
56
Liabilities
Are debts owed by the business. They may be non-current (fixed) liabilities or (short-term) current liabilities
57
Non-current assets
Items owned by the business for more than one year
58
Current assets
Are owned by the business and used within one year
59
Non-current liabilities
Long-term debts owed by the business, repaid over more than one year
60
Current liabilities
Short-term debts owed by the business, repaid less than one year
61
Capital employed
Shareholders' equity plus non-current liabilities and is the total long-term and permanent capital invested in a business
62
Liquidity
The ability of business to pay back its short-term debts
63
Profitability
The measurement of the profit made relative to either the value of sales achieved or the capital invested in the business
64
Illiquidity
Means that the assets are not easily covertible into cash
65
Gross Domestic Product (GDP)
The total value of output of goods and services in a country in one year
66
Recession
When there is a period of falling GDP
67
Inflation
The increase in the average price level of goods and services over time
68
Unemployment
Exists when people who are willing and able to work cannot find a job
69
Economic Growth
When a country's GDP increases - more goods and services are produced than in the previous year
70
Balance of payments
Records the difference between a country's exports and imports
71
Real income
The value of income, and it falls when prices rise faster than money income
72
Exports
Are goods and services sold from one country to other countries
73
Imports
Are goods and services bought in by one country from other countries
74
Exchange rate
The price of one currency in terms of another
75
Exchange rate depreciation
The value of a currency compared with other currencies

Business (2 decks)

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