Paper 2 Flashcards
What is Employee Share Ownership?
Key employees given shares for business performance.
What is a bank loan?
Borrowing money from a bank, repayable with interest over time.
What is productivity?
Output per worker or machine/Time
What is profitability?
Profit as a proportion of sales.
What is cost leadership?
Strategy of reducing costs to reduce prices and increase sales/revenue.
What is cash flow?
The movement of cash into and out of a business over a period of time.
What is lean production?
Minimizing waste in production processes.
What is crowdfunding?
Raising finance from many small investors, typically via online platforms.
What characterizes Power Culture?
Centralized decision-making power.
What is Labour Retention?
Percentage of employees staying over a period.
What is a grant?
A sum of money from the government or other organizations that does not need to be repaid.
What is Total Quality Management (TQM)?
Ensuring all employees focus on quality.
What are corporate aims?
Broad, long-term ideas as to how the business should develop.
What is environmental legislation?
Laws that reduce business impact on the environment.
What is Long-Termism?
Decisions affecting business objectives for over five years.
Short-Termism focuses on _______.
quick financial rewards over long-term investments.
What are sales of assets and what do they do?
Selling business-owned resources to generate funds.
What are External Stakeholders?
Groups outside the business with interests in its actions. (Pressure groups, Govy, Competitiors, Shareholders)
What is the Shareholder Approach?
Business decisions focused on maximizing shareholder returns.
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What is a Contingency Plan?
Preparing responses for potential future risks.
What is Strong Culture?
Culture that can motivate employees, align team efforts etc.
What is trade credit?
Suppliers allow businesses to buy goods/services now and pay later.
.
Labour Turnover measures _______.
Percentage of employees leaving over a period.
What is net cash flow?
The difference between cash inflows and outflows.
What are health and safety laws?
Regulations to prevent workplace injuries.
What is quality control?
Inspecting finished products for defects.
What is the Stakeholder Approach?
Business considers all stakeholders in decisions.
Return on Investment (ROI) measures _______.
Financial benefits gained from an investment.
.
What is Person Culture?
A focus on Individual expertise
What is the business cycle?
Fluctuations in economic growth (boom, downturn, recession, recovery).
What is a budget?
A financial plan estimating income and expenses.
The Simple Payback Method calculates how long an investment takes to _______.
repay.
What is deflation?
A fall in general price levels.
What are economic variables?
Features of an economy that affect businesses and consumers, e.g., unemployment, inflation, exchange rates.
What is limited liability?
Shareholders are only liable for business debts up to the amount they invested.
What is batch production?
Producing goods in groups/batches.
Scenario Planning anticipates _______.
and prepares for future changes.
What is external finance?
Raising funds from outside the business.
What is Corporate Social Responsibility (CSR)?
When a Business considers impacts of their actions on society
What is variance analysis?
Comparing budgeted figures with actual figures.
What is the Earliest Start Time (EST)?
Earliest a project task can start.
What is an overdraft?
When a business withdraws more money than it has in its account.
What is venture capital?
External finance where investors buy shares in return for capital investment.
What is internal finance?
Raising capital from within the business, e.g., personal savings, retained profit.
What is extrapolation?
Extending a trend line to forecast future sales.
What are variable costs?
Costs that change based on output levels, e.g., raw materials.
What is flow production?
Continuous production of identical products.
Define Evidence-Based Decision Making.
Rational decision-making using gathered data.
What is Succession Planning?
Identifying future leaders in an organization that can replace current leaders once they leave.
What are barriers to entry?
Factors that make it difficult for new firms to enter a market. (THINK PORTERS 5 Forces
1) Internal Competition
2) Negotiation power of Consumers
3) Negotiation power of Suppliers
4) Potential for New entrants
5) Threat of Substitute Goods)
What is buffer stock?
The minimum stock level kept for emergencies.
What is an exchange rate?
The price of one currency in terms of another.
What is zero-based budgeting?
Allocating money only if justified.
What are employee protection laws?
Laws ensuring workers’ rights, e.g., fair wages, redundancy rights.
What is a Network Diagram?
(CPA)
Diagram that shows project tasks and timings.
What is Weak Culture?
Poor communication, high staff turnover, and a blame culture.
What is Subjective Decision Making?
Decision-making considering ethics and CSR.
What is personal savings/owner’s capital?
The owner’s personal money used to finance the business.
.
What does Free Float refer to?
Time a task can be delayed without affecting project completion.
.
.
Risk Avoidance involves _______.
Ceasing high-risk activities.
What is a corporate objective?
A goal a business strives to achieve in order to meet its long-term aim.
What does Task Culture emphasize?
Team-focused working on specific projects.
What are fixed costs?
Costs that do not change with output, e.g., rent, salaries.
What is work-in-progress?
Partially finished products.
What is unlimited liability?
Business owners are fully responsible for all business debts.
What is a cash flow forecast?
A prediction of future cash inflows and outflows.
What is revenue?
Income from sales (Selling price × Quantity sold).
What is Latest Finish Time (LFT)?
Latest a task can finish without delaying the project.
What is a business plan?
A strategic document outlining a business’s objectives, financials, and forecasts.
What is total cost?
Fixed costs + Variable costs.
Define Corporate Culture.
Combination of values, beliefs and attitudes shared by ppl in a company
What are business angels?
Individuals who invest in a business in exchange for a stake (shares).
Define Socially Responsible Business.
Business prioritizing ethics in strategic decisions.
What is e-commerce?
Buying and selling goods online.
What is stock rotation?
Managing stock so older inventory is used first.
What is favourable variance?
When actual costs are lower than budgeted costs.
Define Role Culture.
Emphasis on having clear and distinct roles in a business, so everyone understands their job/role.
What does Risk Mitigation entail?
Planning responses to minimize risk impact.
What is critical path analysis (CPA)?
A plan that maps out Key tasks needed for a project to be complete
What is capital intensive?
Using machinery over labor for production.
What is adverse variance?
When actual costs are higher than budgeted costs.
What is the national minimum wage?
The legal lowest hourly wage for workers.
What are distinctive capabilities?
A unique skill or attribute possessed by a business.
What is the earliest start time (EST)?
Earliest a project task can start.
What is SWOT analysis?
Identifies strengths, weaknesses, opportunities, and threats.
What is the break-even point?
The level of sales where total revenue equals total costs.
Define Investment Appraisal.
How profitable an investmentwill be
What is Risk Acceptance?
Accepting a risk if mitigation costs exceed risk costs.
What is a recession?
A period of declining GDP for at least two quarters (6 months).
What is leasing?
A contract to rent assets (e.g., equipment, property) rather than purchasing them outright.
What is organic growth?
Expansion without mergers/acquisitions.
(New projects/products/stores)
What is cell production?
Putting workers into teams responsible for different production stages.
What is Porter’s Five Forces Model?
Analyses industry competition through five factors.
1) Internal Competition
2) Negotiation power of Consumers
3) Negotiation power of Suppliers
4) Potential for New entrants
5) Threat of Substitute Goods
What is quality assurance?
Checking quality at every production stage.
Who are Internal Stakeholders?
Employees, managers, directors, and owners.
What is payback period?
Time taken to recover initial investment.
Define Stakeholders.
Individuals or groups affected by business activities. (Govy, Pressure groups, Managers, Workers etc)
What is consumer protection legislation?
Laws protecting consumers from poor-quality products.
What is reorder level?
The stock level at which a new order is placed.
What is Just-in-Time (JIT)?
Producing a product as and when it is demanded/New Stock being ordered just as old stock is running out
What is inflation?
General price increase in an economy.
What is vertical integration?
Merging businesses at different production stages.
What is stock control?
Managing inventory levels to ensure smooth production.
What is horizontal integration?
Merging businesses in the same industry.
What are PESTLE factors?
External factors that affect a business: Political, Economic, Social, Technological, Legal, Environmental.
What is retained profit?
Profit reinvested into the business rather than distributed as dividends.
What is job production?
Producing one-off items to customer specifications.
.
What are economies of scale?
A benefit that larger businesses gain due to size/output
What is Kaizen?
Constantly making small improvements.
What is a mission statement?
A statement that outlines a companies core purpose/reason for existing
What does Absenteeism represent?
Percentage of employees absent from work.
What does Labour Productivity measure?
Output per employee over time.
What is Ansoff’s Matrix?
A strategic tool to analyse business growth.
- Market Development
- Diversification
- Market Penetration
- Product Development
What is the Payback Period?
Time taken to recover initial investment.
