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A2 Business > key terms > Flashcards

key terms Flashcards

1
Q

what is a balance sheet?

A

a document describing the financial position of a business at a particular point in time

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2
Q

what is a income statement?

A

an account showing the income and expenditure of a company over a period of time

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3
Q

what are assets?

A

items that are owned by an organisation

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4
Q

what is a non current asset?

A

resources that can be used repeatedly in the production process and which are not liquid. eg buildings and machinery

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5
Q

what are current assets?

A

short term items that are not held by the business for more than one year and are therefore very liquid

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6
Q

what are liabilities?

A

debts owed by a business

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7
Q

what is total equity?

A

funds provided by shareholders to set up the business, fund expansion and purchase fixed assets

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8
Q

how do you work out net assets?

A

non current assets + current assets - non current liabilities - current liabilities

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9
Q

how do you work out assets employed?

A

net current assets + non current assets

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10
Q

how do you work out total equity?

A

share capital +reserves

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11
Q

how do you work out capital employed?

A

total equity + non current liabilities

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12
Q

what is GDP?

A

a measure of economic activity, the total value of a countrys output over a given period of time

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13
Q

what is an exchange rate?

A

the price of once country currency in terms of anothers

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14
Q

what is inflation?

A

an increase in the general level of prices within the economy and a decrease in the purchasing power of the currency

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15
Q

what is deflation?

A

a decrease in the general level of prices within an economy or a rise in the purchasing power of the currency

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16
Q

what is fiscal policy?

A

the use of taxationa nd government spending to influence the spending within an economy

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17
Q

what is monetary policy?

A

controlling interest rates and quantitative easing (money supply) in order to influence the level of spending and demand in the economy

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18
Q

what is protectionism?

A

the extent to which a government uses controls to restrict the amount of imports entering the country

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19
Q

what is globalisation?

A

the increased integration and interdependence of national economies

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20
Q

what is urbanisation?

A

the increase in people living in towns and cities

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21
Q

what is migration?

A

the permanent movement of people from one region to another

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22
Q

what is csr?

A

the duties of an organisation towards its employees, customers and the wider society including the environment

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23
Q

what is an investment decesion?

A

the process of deciding whether or not to under take capital investment (the purchase of a non current asset)

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24
Q

what is the payback period?

A

the length of time it takes for an investment to pay for itself from the net returns provided by that investment

25
Q

what is the investment criteria

A

the ways in which a business will judge whether an investment should take place

26
Q

what is sensitivity analysis?

A

A technique used to examine the impact of possible changes in certain variables on the outcome of a project

27
Q

what is product differentiation?

A

the degree to which consumers see a particular brand as being different from other brands because of a USP for example

28
Q

what is retrenchment?

A

the cutting back of an organisations scale of operations

29
Q

what is organic growth

A

when a firm expands its existing capacity or range of activities by extending its capacity rather than integration with another firm

30
Q

what is external growth?

A

when a firm expands by integrating another firm as a result of either a merger or a takeover

31
Q

what is integration?

A

the coming together of two or more businesses via merger or takeover

32
Q

what is a takeover?

A

where one firm buys the majority of shares in another firm and therefore assumes full management control

33
Q

what is economies of scope?

A

cost advantages that result from firms providing a variety of products rather than specializing in just one

34
Q

what is the experience curve?

A

a graph showing that the more a business produces/grows the lower the costs per unit. essentially meaning that the more experienced a firm gets ant making a product the lower the costs are to produce it

35
Q

what is synergy?

A

the whole is greater than the sum of the two businessss. 1+1=3

36
Q

what is overtrading?

A

takes place when a business grows too quickly and doesnt have enough working capital to operate on a day-to-day basis

37
Q

what are the five stages of the grieners model?

A

creativity, direction, delegation, co-ordination and collaboration

38
Q

what are the five crisis of the grieners model?

A

leadership crisis, autonomy crisis, control crisis, red tape and growth crisis

39
Q

what is a franchise?

A

ẁhen a business gives another business the right to sell its products

40
Q

what is conglomerate intergration?

A

the coming together of firms operating in unrelated markets

41
Q

what is innovation?

A

the successful exploitation of new ideas

42
Q

what is kaizen?

A

the process of encouraging employees to implement small incremental changes in order to achieve innovation, better quality, or greater efficiency

43
Q

what is R+D

A

the scientific investigation necessary to discover new products or manufacturing processes

44
Q

what is bench marking?

A

implementing processes, taken from other firms, into your business. Usually taken from businesses which are the best in its industry

45
Q

what is intellectual property?

A

any intangiable assets that arise from human knowledge and ideas

46
Q

what is a patent?

A

a official document permitting the holder to be the only user or producer of the product or service FOR A SPECIFIC PERIOD

47
Q

what is copyright?

A

legal protection against copying for authors

48
Q

what is off-shoring?

A

where businesses outsource or sub-contract business activities overseas largely because labour and other production costs are much cheaper there

49
Q

what is licensing?

A

a business arrangement whereby one company gives another company permission to manufacture its goods for a specified fee

50
Q

what is an alliance?

A

agreement between two or more companies to combine their strengths and expertise in order to undertake a mutually beneficial project

51
Q

what is direct investment?

A

the taking of a controlling ownership in a company in one country by a company based in another country. can be by organic growth eg Lidl or by takeover

52
Q

what is internationalization?

A

the growing tendency for businesses to operate outside their home countrys borders

53
Q

what is big data?

A

large pools of data that can be captured, communicated and analysed

54
Q

what is data mining?

A

the process whereby a business transforms raw data into useful information to support the various activities of the business

55
Q

what is enterprise resource planning?

A

a businesses use of its infomation system so that it can automate and integrate its core business processes

56
Q

what does delayering lead too in a organisational structure?

A

wider and flatter structure

57
Q

what are organic structures?

A

flat organisational structures, horizontal communication and interactions

58
Q

what are mechanistic structures

A

hierarchical and bureaucratic organisational structures, highly centralised authority

A2 Business (15 decks)

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