Brainscape's Knowledge GenomeTM

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


See full index

Business Studies > Theme 3 - Business Decisions And Strategy > Flashcards

Theme 3 - Business Decisions And Strategy Flashcards

1
Q

Average rate of return or accounting rate of return (ARR)

A

A method of investment appraisal that measures the net return per annum as a percentage of the initial spending.

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

Capital cost

A

The amount of money spent when setting up a new venture.

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

Discounted cash flow (DCF)

A

A method of investment appraisal that takes interest rates into account by calculating the present value of future income.

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

Investment

A

The purchase of capital goods.

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

Investment appraisal

A

The evaluation of an investment project to determine whether or not it is likely to be worthwhile.

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

Net cash flow

A

Cash inflows minus cash outflows.

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

Net present value (NPV)

A

The present value of future income from an investment project, minus the cost.

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

Payback period

A

The amount of time it takes to recover the cost of an investment project.

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

Present value

A

The value today of a sum of money available in the future.

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

Corporate objectives

A

The objectives of a medium to large-sized business as a whole.

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

Departmental and functional objectives

A

The objectives of a department within a business.

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

Mission statement

A

A brief statement, written by the business, describing its purpose and objectives, designed to encapsulate its present operations.

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

Objective (or goal)

A

A target of outcome for a business that allows it to achieve its aims.

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

SMART

A

Acronym for the attributes of a good objectives: specific, measurable, agreed, realistic and time specific.

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

Corporate strategy

A

The plans and policies developed to meet a company’s objectives. It is concerned with what range of activities the business needs to undertake in order to achieve its goals. It is also concerned with whether the size of the business organisation makes it capable of achieving the objectives set.

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

Distinctive capability

A

A form of competitive advantage that is sustainable because it cannot easily be replicated by a competitor.

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

Diversification

A

Developing new products in new markets.

18
Q

Market development

A

The marketing of existing products in new markets.

19
Q

Penetration

A

Using tactics such as the marketing mix to increase the growth of existing products in an existing market.

20
Q

Portfolio analysis

A

A method of a firm (its portfolio) to decide where each fits within the strategic plans.

21
Q

Product development

A

Marketing new or modified products in existing markets.

22
Q

External audit

A

An audit of the external environment in which a business finds itself, such as the market within which it operates or government restrictions on its operations.

23
Q

Internal audit

A

An analysis of the business itself and how it operates.

24
Q

SWOT analysis

A

An analysis of the internal strengths and weaknesses of the business and the opportunities and threats presented by its external environment.

25
Q

Trade association

A

An organisation whose members are all involved in the same industry or trade. The organisation pursues the interest of these businesses.

26
Q

Monopoly

A

A market dominated by a single business.

27
Q

Oligopoly

A

A market dominated by a few large businesses.

28
Q

PESTLE analysis

A

Analysis of the external political, economic, social, technological, legal and environmental factors affecting a business.

29
Q

Diseconomies of scale

A

Rising long-run average costs as a business expands beyond its minimum efficient scale.

30
Q

Economies of scale

A

The reductions in average costs enjoyed by a business as output increases.

31
Q

External economies of scale

A

The cost reductions available to all businesses as the industry grows.

32
Q

Internal economies of scale

A

The cost reductions enjoyed by a single business as it grows.

33
Q

Minimum efficient scale

A

The output that minimises long-run average costs.

34
Q

Backward vertical integration

A

Joining with a business in the previous stage of production.

35
Q

Forward vertical integration

A

Joining with a business in the next stage of production.

36
Q

Horizontal integration

A

The joining of businesses that are in exactly the same line of business.

37
Q

Integration

A

The joining together of two businesses as a result of a merger of takeover.

38
Q

Merger

A

Occurs when two or more businesses join together and operate as one.

39
Q

Synergy

A

The combining of two or more activities or businesses creating a better outcome than the sum of the individual parts.

40
Q

Takeover

A

The process of one business buying another.

41
Q

Vertical integration

A

The joining of two businesses at different stages of production.

Business Studies (4 decks)

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