Brainscape's Knowledge GenomeTM

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


See full index

Edexcel A Level- Business > Per 2 keywords > Flashcards

Per 2 keywords Flashcards

1
Q

corporate aims

A

a generalised statement of where a business is heading, from which objectives can be set

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

mission

A

the underpinning purpose behind the existence of a business

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

corporate objectives

A

specific targets set for the whole firm to reach in a given time period to achieve the corporate aims, they are SMART

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

mission statement

A

a qualitative statement of the business’ aims and is the underpinning purpose behind the existence of a business. It also says its vision for the future

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

corporate strategy

A

a medium to long term plan for achieving the corporate objectives

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

strategic decisions

A

they are large scale decisions that are hard to reverse

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

tactical objectives

A

they are short-term which do not rely on many resources and can be easily reversed

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

porter’s strategic matrix

A

a model showing alternative strategies for achieving competitive advantage

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

product differentiation

A

the extent to which consumers perceive on product as being distinct from its rivals

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

distinctive capabilities

A

a competency that is unique and difficult to copy that leads to a competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

diversification

A

when a company expands its activities outside its normal range by selling a new product in a new market

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

generic strategy

A

a strategic position that will prove effective in every market

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

competitive advantage

A

an advantage over competitors gained by offering consumers greater value, either by means of lower prices or through non-price strategies

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

ansoff’s matrix

A

a model showing alternative strategies for achieving growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

market penetration

A

selling more of an existing product into an existing market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

market development

A

selling an existing product in a new market

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

product development

A

selling a new product into an existing market

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

repositioning

A

changing a product or its promotion to appeal to a different market segment

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

SWOT analysis

A

it identifies a business’ internal strengths and weaknesses along with the opportunities and threats it faces by the external environment

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

benchmarking

A

comparing your own performance with that of rivals, to try to identify and learn from best practise

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

key performance indicators (KPIs)

A

quantifiable measures of aspects of a business’ performance that the business considers to be the main determinants of its commercial success

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

PESTLE analysis

A

a framework for assessing the key features of the external environment facing a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

external influence

A

a factor beyond a firm’s control that can affect its performance, e.g. changes in laws and regulations

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

economies of scale

A

when unit costs fall as output increases

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

diseconomies of scale

A

when unit costs rise as output increases

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

internal economies of scale

A

these are the economies that can arise within the business as its scale of operation expands, such as purchasing or managerial economies

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

external economies of scale

A

they may arise outside the business, or more commonly, when an industry grows, when components from suppliers become cheaper

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

organic growth

A

growth that takes place naturally, rather than through merger or takeover, e.g. through opening new stores

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

overtrading

A

when a business faces liquidity problems as a result of expanding too quickly without sufficient cash reserves

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

quantitative sales forecasting

A

involves estimating possible future sales figures on the basis of available primary or secondary quantitative data

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

moving averages

A

a quantitative method used to find underlying trends in a set of raw data

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

extrapolation

A

using past data trends to predict future performance

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

time series analysis

A

a series of figures covering an extended period of time

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

trend

A

the general path a series of values follows over time, disregarding variations or random fluctuations

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

correlation

A

expresses a relationship between two variables

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

investment appraisal

A

it is a series of techniques designed to assist businesses in judging the financial desirability of an investment decision

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

payback

A

the length of time that it takes to recover the cost of an investment through the net returns provided by that particular investment

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

average rate of return

A

looks at the total return on a project and finds the annual average as a percentage of the initial investment cost

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

discounted cash flow (NPV)

A

a method of finding the present value of future income, by applying a discount factor to decrease the present value of future income

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

discounting

A

applying a discount factor to a money sum to take into account the opportunity cost of money over time

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

criterion level

A

a yardstick set by directors to enable managers to judge whether investment ideas are worth pursuing

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

decision tree

A

a mathematical model that sets out all the options available when making a decision, plus the probabilities of the outcomes occurring

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

expected values

A

the financial value of an outcome calculated through adjusting the estimated financial effect by the probability of its occurrence

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

net gain (expected monetary reward)

A

the value to be gained from taking a decision. it is calculated by adding together the expected value of each outcome and deducting the costs associated with the decision

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

critical path analysis

A

the process of planning the sequence of activities in a project in order to identify the most efficient way of completing an integrated task or project.

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

critical path

A

the longest sequence of events on which any delay will cause a delay to the whole project, they have no float time

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

float time

A

the duration an activity can be extended or postponed so that the project still finishes within the minimum time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

earliest start time

A

the EST of an activity is the earliest possible time at which it is possible to start an activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

latest finish time

A

the latest possible time by which an activity must be finished without it delaying the project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

corporate culture

A

it sums up the spirit, the attitudes, the behaviours and the ethos of an organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

strong culture

A

where values and beliefs are widely shared and significantly influences people’s behaviour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

weak culture

A

values and beliefs don’t exist or are not widely shared so do not significantly influence people’s behaviour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

power culture

A

where power is held by just a few individuals whose influence spreads throughout the organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

role culture

A

where employees have clearly defined roles within a highly defined hierarchical structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

task culture

A

where teams are formed to complete specific tasks, and power derives from your role and abilities within each team

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

person culture

A

where individuals are unique and see themselves as superior to the organisation as they have unique expertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

bureaucratic

A

an organisation stifled by paperwork, checking and rechecking of decisions and actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

stakeholder

A

any individual or organisation who has a vested interest in the activities and decision making of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

shareholder

A

someone who owns a proportion of a company’s share capital and therefore has voting rights at the annual general meeting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

internal stakeholders

A

groups or individuals within an organisation who have an interest in the business, e.g. employees, managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

external stakeholders

A

groups or individuals outside of an organisation who have an interest in the business, e.g. customers, competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

stakeholder approach

A

a long term approach which looks at profitability through investing in employees to improve productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

shareholder approach

A

a short term approach that looks at profitability through spending as little as possible on employees, they are seen as a cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

pressure group

A

a group of people with a common interest who try to further that interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

business ethics

A

the morals and principles that underpin business behaviour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

ethics

A

moral guidelines which govern acceptable behaviour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

peer review

A

looking at other companies of a similar size salaries of CEO. The CEOs choose bigger companies to look at as this will mean their salary will rise, this can lead to collusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

corporate social responsibility

A

the desire to run a business in a morally correct way, attempting to balance the needs of all stakeholder groups

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

whistleblowing

A

when an employee decides they can’t accept a moral dilemma and exposes the unacceptable practise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

statement of comprehensive income

A

this measures the business’ performance through showing a business’ revenue for a period of time along with the costs associated with generating that revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

balance sheet

A

a financial document showing a business’ assets and liabilities at a point in time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

cost of sales

A

the direct costs involved in generating a revenue, this includes the raw materials and the direct labour costs of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

liquidity

A

a measurement of a firm’s ability to pay its short-term bills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

reserves

A

a company’s accumulated, retained profit; it forms part of the company’s total equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

corporation tax

A

a tax levied as a percentage of a company’s profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

gearing ratio

A

it measures the proportion of a business’ capital provided by debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

ROCE (return on capital employed)

A

a ratio that measures the efficiency of a business’ investments by measuring the return generated by the investments or capital employed by a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

inter-firm comparisons

A

comparisons of financial performance between firms, these comparisons should be with a firm of a similar size within the same market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

net realisable value

A

the price that can be obtained for second-hand stock after deducting the selling costs

80
Q

absenteeism

A

percentage of staff who are absent from work

81
Q

labour turnover

A

the percentage of staff who leave a corporation within a given period

82
Q

employee retention

A

the ability of a business to convince its employees to remain within the business

83
Q

internal finance

A

places where a business may gain finance from within the business

84
Q

retained profit

A

any profit left in the business after the cost of sales, fixed overheads, tax and financing costs have been paid. It is often used to re-invest in the business.

85
Q

external finance

A

Places where a business may gain finance from outside the business

86
Q

collateral

A

something of value that is used as security when a loan is offered

87
Q

peer-to-peer funding

A

websites that match up businesses wanting to borrow with investors who are looking for a good return on their investment

88
Q

business angels

A

individuals who invest in the early stages of a riskier business and take an equity share in return for providing finance, advice and guidance

89
Q

crowdfunding

A

a way of getting lots of small investors to fund a new product over the internet

90
Q

share capital

A

finance raised from the selling of shares

91
Q

venture capital

A

high-risk capital invested in a combination of loans and shares, usually in a small, dynamic business in exchange for a substantial part of the ownership of the company

92
Q

overdraft

A

A short-term loan where depositors can go into a negative balance in the bank account

93
Q

leasing

A

when an asset is rented rather than purchased

94
Q

trade credit

A

when a business obtains goods and services from another business but does not pay for these immediately

95
Q

government grants

A

they are hand-outs to small firms who are making a positive difference in the community

96
Q

seed corn capital

A

the early stage finance that might come from an angel investor

97
Q

limited liability

A

when a business is a separate legal identity to its owners, which means that if the business goes bankrupt the owners only lose what they originally put into the business and not their personal belongings

98
Q

unlimited liability

A

when a business and its owner are the same legal entity, in this case the debts of the business are the debts of the owners, and personal property can be sold to pay the debts of the business

99
Q

liquidation

A

when a business fails and sells its assets off to pay its debts

100
Q

creditors

A

those owed money by a business, for example suppliers and bankers

101
Q

business plan

A

a document setting out a business idea, how it will be financed, marketed and put into practise

102
Q

cash flow forecast

A

a prediction of all the money coming in and out of a business

103
Q

cash inflow

A

money flowing into a business from activities such as selling goods and services

104
Q

cash outflow

A

the planned payments each month, this includes both fixed and variable costs

105
Q

net cash inflows

A

cash inflows – cash outflows

106
Q

opening balance

A

how much money a business has in the bank at the start of the time period

107
Q

closing balance

A

it shows the overall state of the bank account at the end of the month

108
Q

sales forecasting

A

predictions about how much sales revenue will be made by a business in a time period

109
Q

trend

A

the general path that a variable takes over a period of time

110
Q

price elastic

A

when demand for a good is responsive to a change in its price

111
Q

price inelastic

A

when demand for a good is not responsive to a change in its price

112
Q

real incomes

A

changes for household incomes after allowing for changes in prices

113
Q

fixed costs

A

any costs that do not vary directly with the level of output

114
Q

variable costs

A

tenue hose costs which vary directly with the level of output

115
Q

revenue

A

the value for total sales made by businesses within a period, usually a year

116
Q

total costs

A

all the costs of producing a specific output level

117
Q

break-even

A

it compares a firms revenue with its total costs to identify the minimum level of sales needed to cover costs. Occurs when total costs = total revenue. Formula – fixed cost / contribution

118
Q

contribution

A

the difference between the variable cost per unit and the selling price per unit

119
Q

margin of safety

A

the amount by which current output exceeds the break-even level of output

120
Q

overhead costs

A

costs which do not change with output, e.g. rent

121
Q

budgeting

A

the process of setting targets, covering all aspects of costs and revenues

122
Q

budget

A

a target for costs or revenue that a business must aim to reach over a given period of time

123
Q

historical budget

A

treating last year’s budget figures as the main determinant of this year’s budget

124
Q

zero-based budget

A

it sets departments budgets as zero and works it way up with budget holders having to justify for every pound they spend

125
Q

variance analysis

A

the difference between the budget and actual values

126
Q

adverse variance

A

when the variance is negative for the business as costs are higher and revenues are lower than budget

127
Q

favorable variance

A

when the variance is positive for the business as costs are lower and revenues are higher than budget

128
Q

profit

A

the financial gain of a business which can be seen by deducting expenditure from revenue

129
Q

cost of sales

A

the collective name given to the costs directly associated to making a product/service

130
Q

fixed overheads

A

costs that have to be paid no matter how well the business is doing, such as rent

131
Q

profit for the year (net profit)

A

operating profit + net financing costs – tax

132
Q

net financing cost

A

interest received from deposits in the ban – interest on loans and overdrafts

133
Q

corporation tax

A

a levy on the incomes of companies, it is tax payed by businesses out of profit

134
Q

statement of comprehensive income

A

a document produced by PLCs that shows revenue, gross profit, net profit and operating profit

135
Q

profitability

A

states profit as % of sales

136
Q

liquidity

A

it measures the ability for a firm to find the cash to pay its bills

137
Q

current assets

A

assets that are owned for a short-time period, they are quickly turned into cash

138
Q

current liabilities

A

debt that must be paid within a year

139
Q

working capital

A

it is the finance available for the day-to-day running of the business, current assets – current liabilities

140
Q

current ratio

A

looks at the relationship between current assets and current liabilities

141
Q

acid test ratio

A

examines the business’ liquidity position by comparing the current assets and current liabilities but omitting the stock

142
Q

contingency finance

A

planning for the unexpected by either keeping a cash cushion in the firm’s current account or keeping an overdraft facility little-used

143
Q

working capital cycle

A

how long it takes for a complete cycle from cash out to cash back in from a customer payment

144
Q

business failure

A

the inability to keep the business going, either because of inability to keep up with the bills/liabilities or because the profits being made are too meagre to be worth continuing

145
Q

administration

A

when the directors of a business feel forced by the threat of insolvency to hand over management control to an administrator

146
Q

productivity

A

the output per unit over a time period

147
Q

job production

A

producing a one-off item for a one-off customer, it is a bespoke service to suit the specific requirements of the customers

148
Q

batch production

A

making a group of identical items at a time, it usually involves the division of labour

149
Q

flow production

A

continuous production of a single standardised product

150
Q

cell production

A

organising workers into self-contained units where they can produce a range of different products more quickly than job production allows, it ensures efficiency

151
Q

automation

A

using machines or computers to complete tasks instead of humans

152
Q

efficiency

A

the extent to which production resources generate output without wastage, resulting in producing at the lowest unit cost

153
Q

labour-intensive production

A

when production mainly uses labour rather than automation and machines

154
Q

capital-intensive production

A

when production is mainly focused around machinery and automation

155
Q

lean production

A

focusing on minimising wastage of resources throughout the supply process

156
Q

capacity

A

the maximum possible output of a business

157
Q

capacity utilisation

A

it measures a firm’s output level as a percentage of the firm’s maximum output level

158
Q

excess capacity

A

when there is more capacity than justified by current demand

159
Q

under-utilisation of capital

A

when the capacity utilisation % is low

160
Q

over-utilisation of capital

A

when capacity utilisation is close to 100% or even above

161
Q

downtime

A

any period when machinery is not being used in production, too much may suggest incompetence

162
Q

excess capacity

A

when there is more capacity than justified by current demand

163
Q

rationalisation

A

reorganising in order to increase efficiency. It often implies cutting capacity to increase the percentage utilisation

164
Q

subcontracting

A

where another business is used to perform or supply certain aspects of a business’ operations

165
Q

stock/inventory

A

this includes raw materials, semi-finished goods and finished goods

166
Q

buffer stock

A

the amount of stock held as a contingency in case of unexpected orders

167
Q

re-order level

A

the level that stock has to fall to before more is ordered

168
Q

lead time

A

the amount of time between when the stock is ordered and when it is received

169
Q

JIT production

A

a Japanese system whereby no buffer stocks are held and stocks are ordered as and when they are needed

170
Q

waste minimisation

A

an aspect of lean production that focuses on reducing waste in production, e.g. wasted time, labour or stock/raw materials

171
Q

stockholding cost

A

the overheads resulting from the stock levels held by a firm

172
Q

kaizen

A

empowering staff to make a series of small suggestions to improves processes in production

173
Q

quality control

A

checking output to remove any faulty goods at the end of the production process

174
Q

quality assurance

A

a system to prevent quality problems from arising through checking quality after each production process

175
Q

total quality management

A

it is a philosophy that considers quality in every part of the business process, it is an attitude to quality where the aims are zero defects and total customer satisfaction

176
Q

quality circle

A

a group of staff who meet regularly to find quality improvements

177
Q

zero defects

A

eliminating quality defects by getting things right first time

178
Q

inflation

A

a rise in the aggregate price level over a time period, measured as a percentage

179
Q

exchange rates

A

the cost of a currency in terms of another

180
Q

appreciation of a currency

A

when the currency has strengthened, the rate at which one currency can be swapped for another increases, you can buy more dollars with a pound

181
Q

depreciation of a currency

A

when a currency weakens, the rate at which one currency can be swapped for another decreases, you can buy fewer dollars with a pound

182
Q

interest rate

A

the cost of borrowing and the reward for saving

183
Q

business cycle

A

the pattern of economic growth, followed by a boom, recession, recovery and back to growth an economy follows

184
Q

boom

A

when economic growth is high, employment is high and inflation may also be high

185
Q

recession

A

when economic growth is negative, unemployment is high and inflation is usually low

186
Q

recovery

A

the period immediately after a recession, when there is positive growth but this is slow

187
Q

unemployment

A

when a worker is willing and able to work, but cannot find a job

188
Q

discretionary income

A

a person’s income after deducting taxes and fixed payments such as rent and utility bills

189
Q

legislation

A

the laws initiated by government but passed by parliament that relate to business operations and therefore employees, the general public and the environment

190
Q

sale of goods act

A

the law that states that goods must be fit for the purpose for which they are sold

191
Q

cartel

A

a group of companies operating in the same market who make agreements to control supply and thus prices

192
Q

barrier to entry

A

anything that makes it more difficult for new firms to enter a market, such as patents

193
Q

monopoly

A

when a single business dominates a market

194
Q

oligopoly

A

when a few large firms dominate a market

195
Q

competitive market

A

when there are a large number of similar firms selling similar goods/services to a similar target market

196
Q

collusion

A

when managers from different firms get together to discuss ways to work together to restrict supply and/or raise prices

Edexcel A Level- Business (12 decks)

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