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Business Studies. > Subject Specific Vocabulary. > Flashcards

Subject Specific Vocabulary. Flashcards

1
Q

Advertising

A

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

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2
Q

Aim

A

The intention to reach a goal.

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3
Q

Air pollution

A

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

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4
Q

Asset

A

Something the business owns; it has a value.

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5
Q

Average rate of return

A

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

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6
Q

Boston matrix

A

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.

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7
Q

Brand image

A

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.

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8
Q

Break-even chart

A

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.

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9
Q

Break-even output

A

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

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10
Q

Buffer stock

A

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

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11
Q

Business plan

A

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.

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12
Q

Cash

A

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

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13
Q

Cash flow forecast

A

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.

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14
Q

Cash inflow

A

Money received by the business from its operations or investments.

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15
Q

Cash outflow

A

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

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16
Q

Centralisation

A

Maintaining control by keeping authority at the senior levels of the organisation.

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17
Q

Chain of command

A

The line through the hierarchy that shows who is responsible for whom from top
to bottom of an organisation.

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18
Q

Channels of distribution

A

The route the ownership of the product transfers from the seller to the buyer; it
may be a single transaction or pass through others such as wholesalers,
distributors, agents and retailers.

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19
Q

Closing balance

A

The amount that remains in the account at the end of an accounting period.

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20
Q

Commission

A

An amount of money paid to an employee that is based on a percentage of the
sales he/she achieved; paid in addition to a basic salary.

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21
Q

Commission

A

An amount of money paid to an employee that is based on a percentage of the
sales he/she achieved; paid in addition to a basic salary.

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22
Q

Competition

A

The rivalry between businesses looking to sell their goods/services in the same
market.

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23
Q

Competitive pricing

A

Setting the price of a product so that it is in line with competitors’ prices.

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24
Q

Consumer law

A

Laws designed to ensure that businesses make products that are safe and of
good quality, and that they deal with customers honestly and fairly.

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25
Q

Consumer spending

A

The money spent by households on goods and services to satisfy their needs and
wants

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26
Q

Contracts of employment

A

A legal document that sets out the terms and conditions of the job for the
employer and the employee.

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27
Q

Cost

A

The money spent by a business on goods and services.

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28
Q

Cost-plus pricing

A

Setting the price of a good or service at an amount higher than the cost of
producing it so that a profit is made.

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29
Q

Customer

A

Individuals, businesses or organisations that purchase goods/services and make
decisions about which supplier to choose.

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30
Q

Customer engagement

A

The relationship between the business and the customer that puts the
customer’s requirements at the centre of the operation to build brand loyalty.

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31
Q

Customer loyalty

A

The likelihood that past customers will continue to buy from the business,
enhanced by high quality customer service and/or reward programmes.

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32
Q

Customer satisfaction

A

Whether customers are pleased with the goods/services they receive; whether
they would purchase again.

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33
Q

Decentralisation

A

Where authority is spread widely through the organisation.

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34
Q

Delayering

A

The reorganisation of the organisation’s employees so that there are fewer levels
of management.

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35
Q

Delegation

A

Allocating a task to someone who would not normally be responsible for it.

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36
Q

Demand

A

The quantity of a particular product that will be bought at particular price over a
specific time.

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37
Q

Directors

A

The people who are elected by the shareholders to run the business on their
behalf.

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38
Q

Diseconomies of scale

A

When a business grows too large, leading to a possible increase in unit cost.

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39
Q

Disposal of waste

A

The removal, storage or destruction of unwanted material. Methods include
recycling, burning and landfill sites.

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40
Q

Dividend

A

A portion of the after-tax profit that is paid to shareholders according to the
number of shares they own.

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41
Q

E-commerce

A

Business transactions carried out electronically on the internet.

42
Q

Economies of scale

A

The cost advantage of producing on a large scale. As output increases the unit
cost decreases.

43
Q

Employees

A

Individuals who work full time or part time for the business; they have a contract
of employment detailing their duties and rights.

44
Q

Employment law

A

Rulings that relate to the rights and responsibilities of people who work for a
business; they affect the recruitment and selection process and how the business
deals with its workers.

45
Q

Enterprise

A

The ability to identify business ideas and opportunities to bring them to fruition
and to take risks where appropriate.

46
Q

Entrepreneur

A

A person who has the vision to use initiative to make business ideas happen,
managing the resources and risks.

47
Q

Equality Act (2010)

A

Protects people from discrimination in the workplace and in wider society. It sets
out the different ways in which it is unlawful to treat someone.

48
Q

Ethical objectives

A

A business’ goals that relate to fair business practice or moral guidelines and
make a positive contribution to the business’ reputation.

49
Q

Ethics

A

The moral principles that guide how a business operates.

50
Q

Exchange rates

A

The price of one currency based on another or the cost of buying one currency
from another, for example £1 = $1.21.

51
Q

Expansion

A

The process of increasing a business’ size.

52
Q

Export

A

Good/service sold to a customer in another country.

53
Q

Extension strategies

A

Methods that can be used to prolong the life of a product; could include price
reductions, modifications to the product or relaunch.

54
Q

External growth

A

The growth of a business by joining with another by merger or takeover.

55
Q

External sources of finance

A

Obtaining funds from sources that are not part of the business; possibilities
include bank loan, mortgage, overdraft, additional partner or share issue.

56
Q

Factors of production

A

The elements that combine in the production process: land, labour, capital and
enterprise.

57
Q

Fixed costs

A

The costs that stay largely the same, regardless of the business’ output.

58
Q

Flat organisational structure

A

An organisational structure with a wide span of control and few levels of
hierarchy (a short chain of command).

59
Q

Flow production

A

Using a production line to make goods continuously and in large numbers.

60
Q

Focus groups

A

A small number of people from the target market brought together to discuss a
particular product; produces qualitative data about their preferences and
opinions.

61
Q

Franchising

A

The sale of the rights to use/sell a product by a franchisor to a franchisee. A
fixed fee and/or a percentage is paid in return. The franchiser specifies the
standards and provides training and support.

62
Q

Fringe benefits

A

Additional ‘perks’ that are in addition to a wage/salary; they are liable to income
tax.

63
Q

Full time

A

Working all the usual hours required of an employee; usually 35 hours or more.

64
Q

Gap in the market

A

An opportunity for a new business (or expansion) which may meet a need that is
not being met, or a group of potential customers who are not yet purchasing a
particular good/service.

65
Q

Global warming

A

The steady increase in the earth’s temperature due to emissions and the build-
up of greenhouse gases, resulting in climate changes.

66
Q

Globalisation

A

The trend for large businesses to operate on a worldwide scale; money, goods
and services can be transferred across national borders.

67
Q

Goods

A

Items that are produced from raw materials for sale to businesses or
consumers.

68
Q

Government grants

A

Money available from the government to fund projects that it wants to support;
the money is not repaid, but there are conditions and often progress reports are
required.

69
Q

Growth

A

A business’ increase in size. Methods include: asset value, employees, market
share, markets, profits and sales.

70
Q

Health and Safety at Work Act (1974)

A

Sets out the duties and responsibilities of both employers and employees for
health and safety in the workplace.

71
Q

Hierarchy

A

The management structure of a business/organisation showing the levels of
responsibility. It is often shown as an organisation chart.

72
Q

Hire purchase

A

Buying items by making a small initial payment and paying the remaining
amount in instalments over an agreed period of time.

73
Q

Import

A

Good/service bought from a supplier in another country.

74
Q

Income statement

A

A summary of the revenue and expenses over an accounting period that lead to
a profit or loss position.

75
Q

Induction

A

Training given to a new employee when they start a new job; it provides
information about the business, its operation and working practices.

76
Q

Inspection

A

Testing/examining items to check that materials or items conform to the
specified requirements/standards.

77
Q

Integration

A

Two or more businesses join together.

78
Q

Interest rates

A

The rate charged for borrowing money over a period of time, or the reward for
saving money.

79
Q

Job analysis

A

The process of determining what the job entails, including responsibilities and
tasks.

80
Q

Job description

A

A summary of what the job entails, including job title, duties and who they are
responsible for/to.

81
Q

Job share

A

A system where two employees choose to share a full time job; they receive the
salary and benefits on a pro rata basis according to the proportion of the full
time hours that each works.

82
Q

Just in case (JIC)

A

Organising procurement to ensure that the production process never runs out of
stock, reducing the number of sales lost due to insufficient raw materials.

83
Q

Just in time (JIT)

A

Organising the ordering of raw materials and components to be delivered just
before they will be used, reducing the need for storage.

84
Q

Lean production

A

Continually working to reduce the resources used to create products: raw
materials, labour, machines and premises.

85
Q

Level of employment

A

The percentage of the population of working age that are employed.

86
Q

Liability

A

The extent of the owner’s/owners’ responsibility for the debts of the business.

87
Q

Limited liability

A

The owners are not responsible for the debts of the business. The limit of their
liability for the business’ debts is the amount they invested.

88
Q

Loans

A

A fixed sum of money borrowed for a specified period of time at an agreed rate
of interest; repaid in instalments.

89
Q

Local community

A

The individuals, other businesses and organisations that are located close to the
business. The business interacts with these groups.

90
Q

Location

A

The site of a business and the reasoning behind the choice of site.

91
Q

Logistics

A

Managing the movement of supplies and products to ensure the timely delivery
of supplies to the production process and finished products to customers.

92
Q

Loss

A

Where expenditure is greater than income.

93
Q

Loss leader

A

A good or service sold at below cost price to bring customers into the shop with
the intention that, once there, they may purchase full-priced items too.

94
Q

Management

A

Organising and coordinating business activities in order to fulfil production and
meet the business’ objectives.

95
Q

Margin of safety

A

The amount by which current sales exceed the break-even level of output.

96
Q

Market

A

Where those wishing to buy goods/services make contact with those who have
them to sell.

97
Q

Market research

A

Collecting information about the customers’ needs, wants and preferences that
will help the business to make design, production and marketing decisions.

98
Q

Market share

A

The proportion of the whole market for a product that is held by the business.

99
Q

Marketing

A

The coordination of activities that ensure that customers get what they want, in
the amounts they want, when they want it and at a price that suits them.

100
Q

Marketing mix

A

The combination of four areas of marketing activities (price, product, promotion
and place) to make sure that customers’ needs and wants are met while
generating optimum revenue.

101
Q

Marketing mix

A

The combination of four areas of marketing activities (price, product, promotion
and place) to make sure that customers’ needs and wants are met while
generating optimum revenue.

Business Studies. (6 decks)

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