Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Studies AS > JSL Year 13 > Flashcards

JSL Year 13 Flashcards

1
Q

08/06/17

What is a mission statement

A

A formal summary of the aims and values of a company, organisation or individual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

08/06/17

What is a vision statement

A

What an organisation would like to achieve or accomplish in the mid or long term future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

08/06/17

What is meant by an aim and what is an objective

A

Aim - goals of the businesses future which is a statement of purpose

Objectives - these are statements of specific outcomes that are to be achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

08/06/17

What is a tactical and what is a strategic objective

A

Tactical - immediate short term desired result

Strategic - long term organisational years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

09/06/17

What are private costs

A

Those costs which occur in transaction (e.g. labour and machinery)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

09/06/17

What are social costs

A

Those costs outside the transaction (e.g. noise pollution)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

14/06/17

What is meant by a hierarchy of objectives

A

This is a tool that helps analyse and communicate the project objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

14/06/17

What is meant by a mission and a vision

A

Mission - the overall purpose of the business

Vision - the overall aspiration of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

14/06/17

What is meant by aims/goals

A

General statements of what the business intends to achieve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

14/06/17

State impacts of setting aims/objectives

A 
Clearer focus
Optimum use of resources
Effective use of time
Peace of mind
Clarity to decision making
Easier measurement of what you do
More freedom of thought 
Easier communication with others
Motivate employees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

22/06/17

What are business strategies

A

A plan of action to take the business forward

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

22/06/17

What is an internal audit and what is an external audit

A

Internal: strengths and weaknesses

External: PESTLE (government, technology)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

23/06/17

Explain the anagram of PESTLE

A

Political factors - government etc
Economic factors - is the economy favourable (confidence)
Social factors - what are society trends (attitudes and demographics)
Technological factors - available ICT
Legal - all UK and EU laws
Environmental issues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

06/07/17

What are Porter’s 5 forces?

A 
Threat of substitution
Buyer power
Threat of new entrants 
Supplier power 
Competitive rivalry
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

07/09/17

Why do businesses fail?

A 
Too much stress on the owner
Not enough funds 
Poor quality of a business plan 
Lack of interest 
Poor communication
Competition
Poor spending
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

07/09/17

What are the consequences of failure?

A

Job losses
Unlimited liability
Knock on effect on others
Personal reputation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

07/09/17

What are the 5 stages of how to change a failing business

A

1) Identify the exact problem(s)
2) Remove as many unnecessary costs as possible
3) Put in a business plan to increase revenue
4) Have efficient production, marketing, finance
5) Follow the plan and evaluate it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

08/09/17

What is a risk

A

What you may lose. The higher the risk, the higher the reward

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

08/09/17

What is meant by uncertainty

A

Not knowing whether the risk will pay off or not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

15/09/17

What are the main financial objectives

A

Income statement objectives (profit and loss)
Balance sheet objectives (value of the business)
Cash flow objectives (working capital)
Your stakeholders will be very interested in some or all of these objectives
You can compare one year to the next (with caution)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

15/09/17

What are the factors influencing objectives

A 
Size of the market
Size of the business
In line with company budget 
The economy
Competition 
Government and taxation 
Bank of England
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

15/09/17

Why are financial objectives set?

A 
Helps investors decide to invest 
Keep shareholder confidence 
Helps scrutinise performance 
Banks will decide to lend or not 
It's a legal requirement 
Used as benchmarking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

15/09/17

What is the objective of a balance sheet

A

To increase the value of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

18/09/17

What are the two types of accounting

A

Financial accounting

Managerial accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

18/09/17

What is meant by a business in receivership

A

A special person decides what happens to the business next (sold, assets sold and creditors paid back etc)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

18/09/17

What is meant by a business in administration

A

This is someone who is appointed by the courts to take over the business but the business can’t be liquidated (put into cash)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

18/09/17

What are the 7 types of accounting principles

A 
Consistency 
Going concern
Matching/Accruals 
Materiality
Objectivity 
Prudence
Realisation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

18/09/17

What is meant by consistency as an accounting principle

A

Doing the same layout each year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

18/09/17

What is meant by going concern as an accounting principle

A

Operating as normal - not assuming anything irrational is going to happen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

18/09/17

What is meant by matching/accruals as an accounting principle

A

Date of transaction - when you record when an order happens

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

18/09/17

What is meant by materiality as an accounting principle

A

Assets which make a difference - assets that have some value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

18/09/17

What is meant by objectivity as an accounting principle

A

Realistic value - where you put a realistic value on an asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

18/09/17

What is meant by prudence as an accounting principle

A

Conservatism - round income down, round expenses up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

18/09/17

What is meant by realisation as an accounting principle

A

When goods legally change hands - when goods are actually handed to the consumer that must be a legal recognised contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

18/09/17

What is meant by the acronym GAAP

A

Generally Accepted Accounting Principles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

18/09/17

What is meant by accrual and matching principle (date of transaction) as a GAAP

A

You must record something when it happens

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

18/09/17

What is meant by monetary unit assumption (quantifiable transaction) as a GAAP

A

Only records valuable assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

18/09/17

What is meant by a full disclosure assumption as a GAAP

A

Where a business is expected to disclose income/expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

18/09/17

What is meant by a time period assumption as a GAAP

A

All accounts take place in the agreed tax year (generally April to March)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

18/09/17

What is meant by an economic entity assumption as a GAAP

A

The owner is separate from the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

18/09/17

What is meant by revenue recognition as a GAAP

A

A transaction is recorded when it happens

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

18/09/17

What is meant by a cost principle as a GAAP

A

A business only records the cost of the asset when they bought it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

18/09/17

What is meant by the going concern principle as a GAAP

A

A business is assumed to be working as normal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

18/09/17

What is meant by the conservatism and consistency as a GAAP

A

Round income down, round expenses up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

18/09/17

What is meant by materiality as a GAAP

A

Any asset that has a value or which make a true difference

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

18/09/17

What is meant by logistical as a GAAP

A

Delivering goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

27/09/17

What are the factors which affect payback

A 
Quality
Longest lifespan
Finance
Payback time
Will the investment maintain its value in the long term?
48
Q

27/09/17

Advantages of accounting rate of return (ARR)

A

Provides a percentage return which can be compared with a target return
Looks at the whole profitability of the project
Focuses on profitability - a key issue for shareholders

49
Q

27/09/17

Disadvantages of accounting rate of return (ARR)

A

Doesn’t take into account cash flows - only profits
Takes no account of the time value of money (inflation)
Treats profits arising late in the project in the same way as those which might arise early

50
Q

27/09/17

Advantages of net present value (NPV)

A

Takes into account money will lose value

51
Q

27/09/17

Disadvantages of net present value (NPV)

A

Guess work as you don’t know how much the figure for inflation will be

52
Q

06/10/17

What is meant by depreciation

A

This is a reduction in the value of an asset over time

53
Q

06/10/17

How do you calculate reduced balance depreciation

A

This is calculated by charging a higher rate in the early part of the assets life
Step 1: calculate the depreciation charge by using the following formula: depreciation charge per year = (book value - residual value) x depreciation factor
Step 2: subtract the depreciation charge from the current book value to calculate the remaining book value

54
Q

11/10/17

What is meant by an index number

A

This allows you to make comparisons over time. You start with ‘the base year’.
Helps you to make true judgements in terms of performance

55
Q

19/10/17

What is meant by cash flow

A

This is all about money flowing in and out of the business

56
Q

19/10/17

What are some of the causes of cash flow problems

A 
Stock issues (mislaid, stolen etc)
Debtors not paying
Not selling enough
Too much stock - cash tied up in warehouse not doing anything
External factors
Recruitment costs
Repairs of machinery 
Overtrading - diseconomies of scales, no space for storage
57
Q

19/10/17

What are some of the ways a business could improve cash flow

A 
Sell more to existing customers or new customers 
Get rid of overdraft 
Put prices up 
Factor debts to debt collecting agency 
Marketing 
Just in time production
Stagger payments 
Leasing not buying 
Change debts for loan repayment
58
Q

19/10/17

What is the purpose of understanding cash flow

A

Helps monitor the business
Helps attract investors
Informs the marketing team if they need to launch promotions
Helps you look at when you make payments
Helps set prices and sales targets

59
Q

19/10/17

What are the limitations of understanding cash flow

A 
Changes to interest rates 
Changes in the economy 
Seasonal issues 
World events 
Competitors behaviour
60
Q

20/10/17

What is a budget

A

This is allocating a set amount of money each month for various expenses

61
Q

20/10/17

What is meant by a variance

A

This is where there is a difference between planned budget and the actual outcome of the budget

62
Q

20/10/17

What are the many problems that arise when trying to budget for the year? (At a local B and B)

A

May overestimate the amount of customers
Could be a natural disaster which affects trade
Competition could arise
May underestimate the amount of electricity used
Overestimate sales

63
Q

20/10/17

Internal sources of finance (short, medium and long term)

A

Short - money from sales, stock
Medium - cash reserves, retained profit, personal savings
Long - selling assets, sales and leaseback

64
Q

20/10/17

External sources of finance (short, medium and long term)

A

Short - credit card, overdraft, trade credit, debtors
Medium - bank loan, venture capital (investors)
Long - shareholders funds, mortgage

65
Q

06/11/17

What is meant by variable and fixed costs

A

Variable costs - change depending on output (e.g. raw materials)
Fixed costs - remain the same no matter how much is produced (e.g. rent, insurance)

66
Q

06/11/17

How do you work out contribution

A

Selling price - variable cost

67
Q

06/11/17

What is the contribution formula

A

Fixed costs/contribution

68
Q

09/11/17

List sources of long term finance

A 
Debentures
Share issue/preference share
Leasing
Hire purchase
Sale and leaseback
69
Q

09/11/17

What is meant by debentures

A

An ‘I owe you’ between businesses. Selling brands and paid back with interest

70
Q

09/11/17

What is meant by share issue/preference share

A

When a business issues more shares to already existing shares but the share price per share decreases

71
Q

09/11/17

What is meant by leasing

A

Paying to temporarily own something. It does come with terms and conditions (never the legal owner)

72
Q

09/11/17

What is meant by hire purchase

A

When you rent a product and the cost of renting goes towards the price of the product (instalments)

73
Q

09/11/17

What is meant by sale and leaseback

A

Selling an asset, then leasing it back

74
Q

10/11/17

What is the importance of financial strategy

A 
Managing cash flow
Running within budget
Generating sales volume 
Generating operating profits
Improving the balance sheet 
Keeping working capital active
Securing finance for future needs
75
Q

10/11/17

Explain how a business could improve its balance sheet

A

Get money off debtors - could factor off debts
Increase profits which increase retained profits
Reduce liabilities so much (decreased mortgage each year)

76
Q

15/11/17

What is meant by adding value

A

An improvement or addition to something that makes it worth more

77
Q

15/11/17

How can you add value

A 
Improved quality 
Greater speed of service 
Branding 
Unique selling point 
Better design 
More convinience
78
Q

17/11/17

Problems associated with being an inventor

A

Multinational companies don’t want your investment as its too much of a risk to their products meaning launching your product can be very difficult to be recognised
Inventions can be a hit or miss
Likelihood of failure can be a major cost and time effort
Lack of finance and support
Can be very ineffective for a long time
Opportunity cost - leaving a job and going into a business by yourself
Material costs of creating the product
Idea being copied
Technology can change. People hate change (retraining and job losses)

79
Q

20/11/17

What is meant by project management

A

This is the application of methods, knowledge, skills and experience to achieve the project objectives
e.g./ planning, executing, monitoring, completing

80
Q

20/11/17

What does critical path analysis allow you to do

A

Calculate the overall time of a project
Put tasks into order and allocate a completion time
Can see what activities can be run simultaneously

81
Q

20/11/17

What is meant by the dummy activity

A

This is when several projects are going on at the same time that are ultimately dependant on each other
e.g/ The Olympic village, the velodrome, the aquatics centre

82
Q

20/11/17

What does total float mean

A

A float shows how much an activity may overrun before it has a large effect on the entire project
Formula: LFT - duration - EST = room for delay
LFT = latest finishing time
EST = earliest starting time

83
Q

20/11/17

What is meant by PERT

A

Program, evaluation and review technique

84
Q

20/11/17

Formula for PERT

A

(optimistic time)+(most likely x 4)+(pessimistic time)/6

85
Q

20/11/17

What is a gantt chart

A

A type of bar chart that illustrates a project schedule
They illustrate the start and finish dates of the elements of a project
Terminal elements and summary elements compromise the work breakdown structure of the project

86
Q

23/11/17

What is meant by free float

A

What if one activity runs over? Free float is what effect will it have on the next activity (but not the final outcome of the project)

87
Q

23/11/17

Formula for calculating free float

A

EST of next activity - duration of our activity - start of our activity

88
Q

23/11/17

What is meant by total float

A

Shows how much an activity may overrun before it has a huge knock on effect on the entire project

89
Q

23/11/17

Formula for calculating total float

A

LFT - duration - EST = room for delay

90
Q

29/11/17

Formula for testing the productivity of staff

A

Number of goods sold/average number of employees

91
Q

29/11/17

Formula for testing productivity of machines

A

Sales revenue/value of machines (non current assets)

92
Q

29/11/17

Simplest formula for calculating productivity

A

Outputs/inputs

93
Q

29/11/17

Formula for testing wages on sales

A

Sales revenue/wage bill

94
Q

29/11/17

Ways to improve productivity

A 
Motivation techniques 
Targets
Monitoring staff
Better machinery
Training
Marginal gains
Factory layout
95
Q

01/12/17

Diseconomies of scales to large businesses

A 
Poor communication
Technological issues as machinery could break
Excessive stress/work
Laziness
Stock issues
Co-ordination
96
Q

04/12/17

What does capacity utilisation mean

A

What % of the business is currently being used

97
Q

04/12/17

Formula for capacity utilisation

A

(Current output/maximum potential output) x 100

This is expressed as a %

98
Q

04/12/17

Benefits of low capacity

A

More one on one feedback
More room for innovation - less pressure on staff
Top quality service
Less labour turnover so better communication
Motivation

99
Q

04/12/17

Why can capacity be low

A 
Customer base
Competition
Other choices
Opportunity cost
External environment - economy increase/decrease
100
Q

04/12/17

Benefits of operating at full capacity

A

Spread fixed costs (economies of scales)
Less wastage of resources
Profits increase
Employees are busy so more motivated
Opportunities for employee bonus payments
More competitive
Stakeholders will view the business in a favourable light

101
Q

04/12/17

Disadvantages of operating at full capacity

A

Little or no opportunity for maintenance
Any additional orders will either be impossible to meet or will require significant additional costs
May put pressure on employees
Little or no time for in-house training
Possibility that the level of quality is affected

102
Q

07/12/17

State 2 factors that would affect the maximum stock level held by a business

A

Size of business

How much storage space a business has

103
Q

07/12/17

What does LIFO and FIFO mean

A

LIFO - last in, first out

FIFO - first in, first out

104
Q

07/12/17

State 4 out of stock costs

A

Expensive deliveries (emergency stock)
Inconvenience
Loss of customers (demotivated staff)
May run out of other stock (substitute stock)

105
Q

13/12/17

Benefits and limitations of Kaison/quality circles/continuous improvement

A

Benefits - improvement within production to meet different targets, motivating
Limitations - while staff have meetings, no production is made, could be overly critical

106
Q

13/12/17

Benefits and limitations of JIT

A

Benefits - good cashflow, less chance of stock being damaged or stolen, less insurance
Limitations - no margin of mistakes, less storage space so no room for expansion, fails to take into account future business objectives

107
Q

13/12/17

Benefits and limitations of TQM

A

Benefits - stops mistakes being carried forward, eliminates early error, should end up with higher quality
Limitations - employ more people so wages are increased, slows down production, time consuming

108
Q

13/12/17

Give definitions for kanban, ergonomics, cell production and jidoka

A

Kanban - automatically re-order stock once it reaches a certain level
Ergonomics - examines relationship between machines over labour performance
Cell production - everyone in the team makes the product together
Jidoka - stop production until the mistake is fixed

109
Q

10/01/18

Briefly describe logistics

A

This concerns supply chain management (where and when stock arrives)
Looks at the integration of supplies, production, warehousing and transportation
The key is to reduce costs at every stage of logistics

110
Q

12/01/18

Describe benchmarking, quality circles, kitemark, zero fault and TQM

A

Benchmarking - compare to the experts
Quality circles - sit around as a team and identify what needs to be improved
Kitemark - you can apply for an award to impress customers (ISO awards)
Zero fault - spot mistakes early so no faults at the end
TQM - step by step quality control

111
Q

12/01/18

What is the difference between quality control and quality assurance

A

Quality control is done at the end of a product and quality assurance happens while the product is being made and after the product is sold

112
Q

12/01/18

Give 5 steps to using benchmarking to improve business profits

A

1) Planning
2) Data gathering
3) Analysis and integration
4) Implementation and execution
5) Recalibration

113
Q

15/01/18

How do you calculate how much wastage is in a business

A

(Wasted output/total output) x 100

114
Q

18/01/18

What is forecasting

A

This is using existing data to predict future trends

115
Q

18/01/18

Give some qualitative forecasting methods

A

Delph technique (expert opinion)
Brainstorming (bringing together a team of experts)
Consumer opinion/expectations
Leading academic opinions (university professors)
Frontline staff opinions (often sales staff)

116
Q

18/01/18

Describe Time Series Analysis

A

Calculates the average over a period of time
The raw data: looks at trends over time
Cyclical variations: looks at economic booms and downturns
Seasonal variations: takes into account seasonal factors (Hotels at Christmas, for example)
Random fluctuations: unexpected change in trends (water shortage leads to a boom in bottled water sales)

117
Q

18/01/18

Limitations of forecasting

A

Only as reliable as the data put forward

Businesses can’t assume that past trends will continue

Business Studies AS (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions