Unit 2 influences on business (mock) Flashcards
1
Q
Current assets
A
Items that a business owns but is not expected to keep for more than one year, such as cash and stock.
2
Q
Stock
A
Raw materials that have not yet been used or products that have been made but not sold.
3
Q
External growth
A
Occurs when a business joins together with another business.
4
Q
Merger
A
Occurs when two or more businesses join together to form a new business.
5
Q
Product life cycle
A
Shows how the sales of a product may change over time.
6
Q
Bank loan
A
A sum of money given by a bank to a business. The money is repaid in instalments each month over a period of several years.
7
Q
Decentralisation
A
Allows employees working in all areas of the business to take decisions.
8
Q
Organic growth (or internal growth)
A
Occurs when a business sells more of its products.
