C

Question 1

Capital

Answer 1

factor of production including all man-made resources used by a business

Question 2

Capital employed

Answer 2

the total value of all long-term finance invested in the business

Question 3

Capital expenditure

Answer 3

involves the purchase of assets that are expected to last for more than one year, such as building and machinery

Question 4

Capital goods

Answer 4

the physical goods used by industry to aid in the production of other goods and services, such as machines.

Question 5

Cash flow

Answer 5

the sum of cash payments to a business (inflows) less the sum of cash payments (outflows)

Question 6

Cash flow forecast

Answer 6

estimate of a firm’s future cash inflows and outflows

Question 7

Cash flow statement

Answer 7

record of the cash received by a business over a period of time and the cash outflows from the business

Question 8

Cash inflows

Answer 8

payments in cash received by the business

Question 9

Cash outflows

Answer 9

payments in cash made by the business

Question 10

Channel of distribution

Answer 10

the chain of intermediaries a product passes through from producer to final consumer

Question 11

Closed questions

Answer 11

questions to which a limited number of pre-set answers is offered

Question 12

Closing cash balance

Answer 12

cash held at the end of the month it becomes next month’s opening balance

Question 13

Cluster sampling

Answer 13

using one or a number of specific groups to draw samples from and not selecting from the whole population, e.g. using one town or region

Question 14

Command economy

Answer 14

economic resources owned, planned and controlled by public sector

Question 15

Commission

Answer 15

a payment to a sales person for each sale made

Question 16

Competition-based pricing

Answer 16

a firm will base its price upon the price set by its competitors

Question 17

Consumer goods

Answer 17

the physical and tangible goods sold to the general public, include durable (can be used more than once) consumer goods, such as cars and washing machines, and non durable (can be used once) consumer goods, such as food and drinks.

Question 18

Consumer markets

Answer 18

markets for goods and services bought by the final use of them

Question 19

Consumer profile

Answer 19

a quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class

Question 20

Consumer services

Answer 20

the intangible products sold to the general public (including hotel accommodation, insurance, train journeys etc.)

Question 21

Contribution per unit

Answer 21

selling price less variable cost per unit

Question 22

Contribution-cost pricing

Answer 22

setting prices based on the variable costs of making a product in order to make a contribution towards fixed costs and profit

Question 23

Corporate social responsibility (CSR)

Answer 23

this concept applies to those businesses that consider the Interests of society by taking responsibility for the impact of their decisions and activities on customers, employees, communities and the environment

Question 24

Cost of sales

Answer 24

a.k.a.cost of goods sold; the direct cost of purchasing the goods that were sold during the financial year

Question 25

Credit control

Answer 25

monitoring of debts to ensure that credit periods are not exceeded

Question 26

Creditors

Answer 26

suppliers who have agreed to supply products on credit and who have not yet been paid

Question 27

Current assets

Answer 27

assets that are likely to be turned into cash before the next balance sheet date

Question 28

Current liabilities

Answer 28

debts of the business that will usually have to be paid within one year

Question 29

Current ratio

Answer 29

current assets/current liabilities

Question 30

Customer relationship marketing (CRM)

Answer 30

using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained