Subject Specific Vocab

Question 1

Advertising.

Answer 1

Advertising
A method of communicating information about the product; the business pays for advertising time/space.

Question 2

Aim

Answer 2

Aim
The intention to reach a goal.

Question 3

Air pollution

Answer 3

Air pollution
The presence or introduction of harmful substances into the air causing disease, allergies or damage to humans, animals, plants or the built environment.

Question 4

Asset

Answer 4

Asset
Something the business owns; it has a value.

Question 5

Average rate of return

Answer 5

Average rate of return
The average profit for the year as a percentage of the original investment. Average rate or return = average return per annum / initial  100

Question 6

Boston matrix

Answer 6

Boston matrix
A tool for analysing the contribution made by each product in a business’ product portfolio. It plots each product’s position according to its market share and the rate of growth of the market.

Question 7

Brand image

Answer 7

Brand image
The consumers’ perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.

Question 8

Break even chart

Answer 8

Break-even chart
A diagrammatic representation of the costs and revenue for a product; it plots total costs against total sales revenue, showing the break-even point where they cross.

Question 9

Break even output

Answer 9

Break-even output
The point at which the business’ total sales equals the total costs. There is neither profit nor loss.

Question 10

Buffer stock

Answer 10

Buffer stock
A stock of raw materials held in reserve to protect the production process from unforeseen shortages.

Question 11

Business plan

Answer 11

Business plan
A detailed statement of how the business intends to operate, either at start-up or during a given period of time. Business plans are based on forecasts and so cover only a short time.

Question 12

Cash

Answer 12

Cash
Money that the business has in cash or at the bank.

Question 13

Cash flow forecast

Answer 13

Cash flow forecast
A financial planning tool that estimates the money coming into and going out of the business on a month-by-month basis; it allows the business to predict times when additional finance may be needed to maintain liquidity.

Question 14

Cash inflow

Answer 14

Cash inflow
Money received by the business from its operations or investments.

Question 15

Cash outflow

Answer 15

Cash outflow
Money paid out by the business to fund its operations or investment activities.