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B. Business Theme 3 > Key Terms > Flashcards

Key Terms Flashcards

1
Q

Absenteeism

A

The percentage of staff away from the workplace through absence

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2
Q

Acid Test Ratio

A

A liquidity ratio which compares the most liquid assets to the current liabilities.

See if a judge can afford to pay its bills

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3
Q

Aim

A

A long term target set by a firm

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4
Q

Ansoffs Matrix

A

Assessing the risk involved in certain marketing strategies by looking at how far the firm is moving away from its current product and market

Market Penetration
Market Development
Product Development
Diversification

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5
Q

Asset turnover

A

A financial efficiency ratio which examines how hard the assets are working to generate revenue.

The higher the figure the more efficient the firm is in generating revenue with assets

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6
Q

ARR

A

Average Rate of Return

The average profit from the investment shown

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7
Q

Backward vertical intergration

A

Where a firm takes over or merges with another at a previous of production e.g. a supplier

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8
Q

Balance sheet

A

A document showing all the assets a firm owns and the liabilities and capital the firm owes

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9
Q

Boston Matrix

A

A marketing model which analyses a firms product portfolio in terms of market share and market growth

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10
Q

Capital employed

A

The total long term finance put into a firm from shareholders and long term borrowing

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11
Q

Cash flow

A

Refers to the timing of cash going in and out of a business

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12
Q

Competition and Market Authority

A

The government department responsible for ensuring fair competition in markets who have the power to prevent price fixing and large takeovers

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13
Q

Competitive advantage

A

The ability to offer something better than rival firms and compete successfully e.g. lower prices

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14
Q

Competitiveness

A

The ability to sell products successfully when competing against rivals in the market

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15
Q

Conglomerate intergration

A

Where a firm joins with another in an unrelated market

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16
Q

Consultation

A

Asking for the opinions of others when making decisions

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17
Q

Corporate objectives

A

A medium to long term target set by a company

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18
Q

Corporate social objectives (CSR)

A

The duties a firm has to its stakeholders such as suppliers, employees, customers and society

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19
Q

Corporate strategy

A

A planned method to achieve corporate objectives

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20
Q

Correlation

A

Shows the relationships between 2 sets of data

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21
Q

Cost Leadership

A

A strategy where a firm tries to attain the lowest possible costs in the market in order to compete on price with rivals

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22
Q

Cost of sales

A

The direct costs of selling the good I.e. the variable costs of raw materials

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23
Q

Critical Activity

A

An activity which has no room for delay (I.e. no float) - if it is delayed it will disrupt the overall project time

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24
Q

Critical Path

A

The longest route through a project consisting of activities which have no room for delay

25
Q

Critical Path Analysis

A

Planning out a series of activities involved in the completion of a project in order to identify the key activities which cannot be delayed

26
Q

Culture

A

The normal attitudes and behaviours within a workplace

27
Q

Current liability

A

An item the firm owes which is payed back within A year e.g. overdraft

28
Q

Decentralisation

A

Where decision making is carried out a local or junior level rather than by senior managers

29
Q

Decision Tree

A

A quantitative decision making technique which involves exploring the alternative options available including their chances of success and failure and their expected financial outcomes so the most profitable option can be chosen

30
Q

Delayering

A

Removing management levels of hierarchy from a business

31
Q

Depreciation

A

Shows the amount by which an asset will fall in value due to wear and tear and obsolescence

32
Q

Differentiation

A

A strategy where a firm offers a different unique feature to rivals such as extra quality or service

33
Q

Discounted cash flow

A

Shows the expected worth of expected future cash flows

34
Q

Diseconomies of Scale

A

Where unit costs increase due to increases in output.

Could be caused by communication and demotivating

35
Q

Distinctive Capability

A

A form of CA that cannot be replicated

36
Q

EST

A

How soon a project can begin

37
Q

External economies of scale

A

The cost reductionist available to all businesses as the industry grows

38
Q

External stakeholders

A

Groups outside a business with an interest in its activities

39
Q

Forward Vertical Integration

A

Joining with a business in the next stage of production

40
Q

Free Float

A

The time in which a task can be delayed without affecting the following task

41
Q

Horizontal Integration

A

The joining in the business in the exact same line of business

42
Q

Inorganic Growth

A

A business growth strategy that involves mergers

43
Q

Integration

A

The joining together of two businesses as result of a merger

44
Q

Internal economies of scale

A

The cost reduction of a single businesses as a market grows

45
Q

Internal stakeholders

A

Groups inside a business with an interest in its activities

46
Q

Investment Appraisal

A

The evaluation of an investment project to decide whether it is worthwhile

47
Q

Labour retention

A

The amount of employees who stay in the company

48
Q

LFT

A

The latest time that a task in a project can finish

49
Q

Mission statement

A

A statement describing a businesses purpose and objectives

50
Q

Monopoly

A

A market dominated by a single business

51
Q

NPV

A

The net present value of future incomes from a project investment

52
Q

Oligopoly

A

A market dominated by a few large businesses

53
Q

Payback period

A

The amount of time it takes to recover the costs of an investment project

54
Q

PESTLE

A

Analysis of the POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL, LEGAL, ENVIRONMENTAL

55
Q

Portfolio Analysis

A

A way to analyse the products and services to see if it fits with the strategic plans

56
Q

Product Development

A

Marketing new products in existing markets

57
Q

ROCE

A

The profit of a business as a total amount of money used to generate it

58
Q

Total float

A

The time which a task can be delayed without affecting the project

59
Q

Vertical integration

A

Where two businesses join at different stage of production

B. Business Theme 3 (2 decks)

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