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BUSINESS STUDIES GCSE > Glossary > Flashcards

Glossary Flashcards

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1
Q

Describe advertising

A

A message that firm pays for, which promotes the firm or its products

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2
Q

What is ARR

A

The average rate of return on an investment

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3
Q

What is an asset?

A

A valuable item owned by the business, or owed to the business

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4
Q

What is average unit cost?

A

How much each product costs to make (calculated by dividing total costs by output)

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5
Q

What is Boston Mix

A

A method used to analyse a business’s product portfolio.

Products are plotted according to their market share and how fast the market they are in is growing and are called:

dogs (low share, low growth)

cash cows (high share, low growth)

stars (high share, high growth)

question marks ( low share, high growth)

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6
Q

Break-even output

A

The level of output at which a company’s total revenue equals its total costs. (makes neither profit nor loss)

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7
Q

What is a business plan

A

An outline what a business will do and how it aims to do it

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8
Q

What is capital

A

A company’s wealth in the form of money or other assets

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9
Q

What is capital employed

A

The total amount of money put into a business

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10
Q

What is cash flow

A

The flow of all money into and out of the business

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11
Q

What is cash inflow?

A

The flow of money into the business:

e.g., money earned from selling products and returns on any investments

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12
Q

What is cash outflow

A

The flow money out of the business -

eg operating expenses, debts, and other liabilities

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13
Q

What is a centralised organisation

A

An organisation with a structure in which all major decisions are made by one person or a few senior managers at the top of the hierachy

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14
Q

What is chain of command

A

The chain connecting directors to operatives in an organisational hierachy

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15
Q

What is channel of distribution

A

The way that products get from a manufacturer to a consumer

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16
Q

What is commision

A

Extra money given on top of their basic salary to sales staff everytime they sell an item.

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17
Q

What is competitive pricing

A

A price strategy in which a firm charges similar prices to other firms

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18
Q

What is a competitor

A

A business that sell the same or similar products in the same market as another business

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19
Q

What is a consumer

A

A person who uses a good or service

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20
Q

What is conrtact of employment

A

A legal agreement between an employee and their employer about a job

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21
Q

what is cost

A

an expense paid out to run a business

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22
Q

what is cost-plus pricing

A

a pricing strategy in which the cost of making the product is increased by a certain percentage to work out the price the product will be sold for

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23
Q

what is credit

A

an agreement that a customer will pay for something at a later date

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24
Q

what are credit terms

A

the terms of a credit agreement that tell a customer how long they have to pay

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25
Q

what is current asset

A

an asset that doesn’t last very long

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26
Q

what is current liability

A

a debt that a business has to pay off soon

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27
Q

what is a decentralised organisation

A

an organisation with a structure in which the authority to make most decisions is shared or spread out between people at different layers of the hierarchy

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28
Q

what is delayering

A

removing layers of managment from an organisation

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29
Q

what is delegalistion

A

passing tasks or responisbilities onto another person

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30
Q

what is demand

A

how much of a product people will be willing to buy at a given price

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31
Q

what is depreciation

A

the amount of value that assets have lost over time due to wear and tear

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32
Q

what is the design mix

A

the different elements of design needed to make a prdouct successful, including the function, cost, and appearance

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33
Q

what is diseconomy of scale

A

when growth leads to an increase in average unit cost

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34
Q

what is a dividened

A

a payment that a shareholder gets if the company makes a profit

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35
Q

what is e-commerce

A

buying and selling products on the internet

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36
Q

what is economy of scale

A

a reduction in average unit cost that comes from producing on a large scale

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37
Q

what is enterprise

A

the process of identifying new business opportunities, and then taking advantage of them

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38
Q

what is an entrepreneur

A

someone who takes on the risk of enterprise activity

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39
Q

what is exchange rate

A

a value that tells you how much one unit of currency costs in a different country

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40
Q

what is extension stratergy

A

an action intended to extend the life of a product

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41
Q

what is external espansion

A

when a company grows by working with other businesses

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42
Q

what is external recruitment

A

where a bunsiness rectruits new people from outside the business

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43
Q

what is factor of production

A

a limited resource used to provide a good or service _ e.g. land, labour, or enterprise

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44
Q

what is fixed asset

A

an asset that a business keeps long-term or uses repeatedly _ e.g. property, equipment, land, computers

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45
Q

what is fixed cost

A

a cost that doesn’t vary with output

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46
Q

waht is flat heirachy

A

an organisational hierachy with few layers

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47
Q

what is flow production

A

a method of production in whiach all products are identical and are made as quickly as possible

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48
Q

what is franchise

A

where a company lets another firm sell its products or use its tradmerks in return for a fee or a percentage of the profits

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49
Q

what is fringe benefit

A

any reward for an employee that is not part of their regular income

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50
Q

what is full-time staff

A

employees that generallywork 35-40 hours a week

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51
Q

what is globalisation

A

the process by which the world is becoming more interconnected

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52
Q

what is government grant

A

a sum of money which is given by the government and does not have to be repaid

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53
Q

what is gross profit

A

the profit left over once the cost of sales has been taken away from the total revenue

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54
Q

what is gross profit margin

A

the fraction of every pound spent by customers that doesn’t go towards making the product

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55
Q

what is hire purchase

A

when a firm purchases something by first paying a deposit and then paying the rest in installments over a period time, while they have use of the product

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56
Q

what is income statment

A

a financial statment that shows how the income of a business has changed over a time period

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57
Q

what is incorperated

A

a business that has its own legal identity

58
Q

what is induction training

A

a training program that introduces new emloyees to a workplace

59
Q

what is interest rate

A

a value which shows the cost of borrowing money or the reward given for saving money

60
Q

what is internal expansion

A

when a company grows by expanding its own activities (called orgainic growth

61
Q

what is internal recruitment

A

where existing employees are recruiuted into new roles within a business

62
Q

what is investment

A

money which is put into a business to make improvements in order to make the business more profitable

63
Q

what is job analysis

A

a process in which every little detail of a job is thought about

64
Q

what is job description

A

a written description of what a job involves

65
Q

what is job production

A

a method of production in which each product has a unique design based on the customer’s specification

66
Q

what is job share

A

where the work and pay of one full-time job is shared between two people

67
Q

what is just-in-case (jic)

A

a method used in stock management in which buffer stocks of items are kept at every stage of the production process

68
Q

what is just-in-time (JIT)

A

a method used in production or stock management in which stock levels are kept at a bere minimium – products are made just in time for delivery to customers.

69
Q

what is lead production

A

a production stratergy that aims to use as few resources as possible and to have as little waste as possible

70
Q

what is limited liability

A

where the owners of a business are not legally responsible for all the debts a business has

71
Q

what is liquidity

A

how easily an asset acan be converted into money

72
Q

what is a loan

A

a long-term source of money that must be paid back to the lender

73
Q

what are logistics

A

getting goods or services from one part of the suply chain to another

74
Q

what is long-term liability

A

a debt that a business has to pay off over a long period of time

75
Q

what is loss

A

where the total costs for a company over a period of time are greater than its revenue

76
Q

what is loss leader pricing

A

a pricing stratergy in which the price of a product is set below cost

77
Q

what is m-commerce

A

when goods and services are bought on the internet using a wireless mobile device, such as a smartphone or tablet

78
Q

what is margin of safety

A

the gap between current level of output and the break-even output

79
Q

what is market

A

a meeting place between customers and suppliers, trade in a particular type of product, or the potential customers for a product

80
Q

what is market research

A

when a business investigates different aspects of a market, e.g. demand for a product, the competition, and the target market.

81
Q

what is market share

A

the proportion of total sales within a market that is controlled by a business

82
Q

what is the marketing mix

A

the number of individuals (including companies) within a market that are potential buyers and sellers of products, or the total value of products in the market

83
Q

what is a merger

A

when two companies join together to form a new, larger firm

84
Q

what is a mortgage

A

a loan used to finance buying property

85
Q

what is net profit margin

A

the fraction of every pound spent by customers that the company gets to keeep

86
Q

what is off-the-job training

A

a method of training in which an employee learns away from their workplace

87
Q

what is on-the-job training

A

A method of training in which an employee is shown how to do their job by another employee and then fiven the opportunity to practice

88
Q

what is operating profit

A

the money left over after paying all the costs of running the business

89
Q

What is opportunity cost

A

the value of something that’s given up in order to do something else

90
Q

what is organic growth

A

when a company grows by expanding its own activities (also alled internal expansion)

91
Q

what is outsourcing

A

when a business pays another firm to carry out tasks it could do itself

92
Q

what is overdraft

A

when more money is taken out of a bank account than has been paid into it

93
Q

what are part-time staff

A

Emplyees that generally work 10-30 hours a week

94
Q

what is a partnership

A

a business ownership structure in which a small number of people (usually between 2 and 20) own an unicorporated company

95
Q

what is person specification

A

a list of the qualifications, experiences, skills, and attitudes a person needs for a particular job

96
Q

what is price penetration

A

a pricing stratergy in which a firm charges a very low price for a product when it is new

97
Q

what is price skimming

A

a pricing strategy in which a firm charges a very high price for a product to begin with.

98
Q

primary research

A

market research that involves getting information from customers or potential customers

99
Q

what is a private limited company

A

a business ownership structure that is incorperated and has shares, but the shares can only be sold with the agreement of all the shareholders

100
Q

what is procurement

A

the act of finding and buying things that a business needs from outside of the business

101
Q

what is product life cycle

A

the different stages taht a product goes through over time

102
Q

what is product portfolio

A

the range of different products that a business sells

103
Q

what is profit

A

the different between revenue and costs over a period of time

104
Q

what is promotional mix

A

the combination of different promotional methods a firm uses to promote a product

105
Q

what is a public limited company

A

a business ownership structure that is incorporated and has shares that can be bought and sold by anyone

106
Q

what is public relations (PR)

A

business activities which involve communicating with the media in an attempt to promote a firm or its products to the public

107
Q

what is purchasing economy of scale

A

a reduction in average unit cost that comes from a firm being offered a lower unit cost from suppliers when it buys its supplies in bulk

108
Q

what is qualitative information

A

information that involves people’s feelings or opinions

109
Q

what is quantitive information

A

information can be measured or reduced to a number

110
Q

what is a retailer

A

a business that sells products to consumers

111
Q

what is retained profit

A

profit that is put back into the business

112
Q

what is revenue

A

the income earned by a business in a given time period

113
Q

what is a salary

A

a fixed payment that is made to employees every month

114
Q

what is sales process

A

a series of steps for finding and selling to customers, as well as providing customer service

115
Q

what is sales promotion

A

a short-term method used to boost a firm’s sales, e.g. 2 for 1 offers

116
Q

what is secondary research

A

market research that involves looking at data from outside the business

117
Q

what is segmentation

A

when people within a market are divided into different groups

118
Q

what is a share

A

a unit of ownership in a company. Owners of shares can share in the profits of the company

119
Q

what is share capital

A

the money put into a business when shares were originally issued

120
Q

what is a sole trader

A

a business ownership structure where one person owns an unincorporated company

121
Q

what is span of control

A

the number of workers who report to one manager in a hierachy

122
Q

what is sponsorship

A

a method of promotion in which a business gives money to an organisation or event. In return the organisation or event displays the business’s name

123
Q

what is staff retention

A

when a business keeps its staff

124
Q

what is a stakeholder

A

any individaul or group of people that is affected by a business

125
Q

what is start up capital

A

the money or assets needed to set up a business

126
Q

what is a statement of financial position

A

a financial statement that records a business’s assets and liablilites at a particualr moment in time

127
Q

what is supply chain

A

the group of firms that are involved in all the various processes required to make a finished product or service available to the customer

128
Q

what is sustainablity

A

working in a way that doesn’t damage the Earth for future generations

129
Q

what is takeover

A

when an existing business expands by buying more than half the shares in another firm

130
Q

what is tall hierachy

A

an organisational hierarchy with lots of layers

131
Q

what is technical economy of scale

A

a reduction in average unit cost that comes from a firm being able to afford more advanced machinery or use larger premises than a smaller firm

132
Q

what is telesales

A

selling products to customers via phone

133
Q

what is total quality management (TQM)

A

a strategy that aims to make quality the responsibility of every employee in an organisation

134
Q

what is trade credit

A

when businesses give firms time to pay for certain purchases

135
Q

what does unincorporated mean

A

a business that doesn’t have its own legal identity

136
Q

what is variable cost

A

a cost that increases as a firm expands output

137
Q

what is a wage

A

a payment that is usually made to employees weekly or monthly. It is calculated using a time rate or a piece rate

138
Q

what is a wholesaler

A

a business that buys products in bulk and stores them in a warehouse

139
Q

what is working capital

A

the money available for the day-to-day operating of the business

140
Q

what is a zero hours contract

A

a contract of employment which means the employer doesn’t have to offer the employee any waork at all and the employee doesn’t have to accept any work that is offered to them

BUSINESS STUDIES GCSE (2 decks)

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