IGCSE Edexcel Business Studies > Definitions > Flashcards

Definitions Flashcards

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1
Q

Definitions: Assets

A

Resources used or owned by a business, such as cash, stock, machinery, tools and equipment

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2
Q

Definitions: Balance of trade (or visible balance)

A

difference between visible exports and visible imports

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3
Q

Definitions: Bank overdraft

A

agreement with a bank where a business spends more money than it has in its account (up to an agreed limit)

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4
Q

Definitions: Capital employed

A

amount of money invested in a business

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5
Q

Definitions: Cash flow forecast

A

prediction of all expected receipts and expenses of a business over a future time period, which shows the expected cash balance at the end of each month

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6
Q

Definitions: Current assets

A

assets likely to be changed into cash within a year

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7
Q

Definitions: Current liabilities

A

debts that have to be repaid within a year

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8
Q

Definitions: Debenture

A

long-term security yielding a fixed rate of interest, issued by a company and secured against assets

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9
Q

Definitions: Gross Profit

A

sales revenue less cost of sales

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10
Q

Definitions: Net assets

A

value of all assets less the value of all liabilities: total at the bottom of the first part of the balance sheet

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11
Q

Definitions: Above-the-line promotion

A

placing adverts using the media

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12
Q

Definitions: Below-the-line promotion

A

any promotion that does not involve
using the media

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13
Q

Definitions: Boston matrix

A

2x2 matrix that describes products according to the market share they enjoy and whether the market has any potential
for growth

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14
Q

Definitions: Break-even point

A

level of output where total costs and total revenue are exactly the same: neither a profit nor a loss is made

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15
Q

Definitions: Consumer panels

A

groups of customers are asked for feedback about products over a set period

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16
Q

Definitions: Market research

A

collection, presentation and analysis of information relating to the marketing and consumption of goods and services

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17
Q

Definitions: Mass market

A

very large markets in which products with mass appeal are marketed

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18
Q

Definitions: Niche market

A

smaller market, usually within a large market or industry

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19
Q

Definitions: Penetration pricing

A

setting a low price to start with in order to get established in the market; price may be raised once established

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20
Q

Definitions: Job Production

A

Job production is when a product is made individually to meet a specific customer’s requirements. Each item is unique and produced from start to finish before the next job begins

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21
Q

Definitions: Batch production

A

Batch production is when a group of identical products is made together in stages before moving on to the next batch. It allows some customization but in larger quantities than job production

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22
Q

Definitions: Flow Production

A

Flow production is the continuous production of identical products on an assembly line. Each product moves through an assembly line / sequence of operations without interruption.

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23
Q

Definitions: Just-in-time (JIT)

A

Just-in-time production is when materials and components are delivered exactly when needed in the production process, reducing the need for storage and inventory costs.

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24
Q

Definitions: Outsourcing

A

contracting out of work that might otherwise have been performed within the organisation to other businesses

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25
Definitions: Economies of scale
financial advantages (falling average costs) of producing something in very large quantities
26
Definitions: Kaizen
Japanese term that means continuous improvement
27
Definitions: Productivity
rate at which goods are produced, and the amount produced, especially in relation to the work, time and money needed to produce them
27
Kaizen Production
Kaizen is a Japanese term meaning continuous improvement, where employees at all levels regularly suggest small changes to improve efficiency and quality.
28
Definitions: Diseconomies of scale
rising average costs when a firm becomes too big
29
Definitions: Apprenticeship
system of training new entrants to a trade or profession, often, but not always, younger workers, mostly on-thejob training but often with some college attendance
30
Definitions: Bonus systems
payment in addition to the basic wage for reaching
31
Definitions: Chairperson
someone who is in charge of a meeting or directs the work of a committee or organisation
32
Definitions: Division of labour
specialisation in specific tasks or skills by an individual
33
Definitions: Job enrichment
making a job more challenging and interesting
34
Definitions: Job satisfaction
pleasure, enjoyment or sense of achievement that employees get from their work
35
Definitions: Minimum wage
minimum amount per hour, which most workers are entitled to be paid
36
Definitions: Limited liability
business owner is only liable for the original amount of money invested in the business; shareholders are legally responsible for the debts of a company according to how many shares they own
37
Definitions: Motivation (Herzberg's)
things at work that result in satisfaction
38
Definitions: Span of control
number of people a person is directly responsible for in a business
39
Definitions: Sole trader
business owned by a single person
40
Definitions: Objectives
goals or targets set by a business
41
Definitions: Market Share
proportion of sales in a total market that a business or product enjoys
42
Definitions: Multinational company
large business with significant production or service operations in at least two different countries
43
Definitions: Stakeholder
individual or group with an interest in the operation of a business
44
Definitions: Employment tribunal
court that deals with cases involving disputes between employers and employees
45
Definitions: Fringe Benefits
'perks' over and above the normal wage or salary
46
Definitions: Remuneration
money paid to employees for their work or services
47
Definitions: Labour Intense Production
Production process which mainly uses human effort in its assembly line to produce goods.
48
Definitions: Capital Intense Production
Production process which mainly uses machines and equipment to produce goods
49
Definitions: Productivity
Rate at which goods are produced, and the amount produced, especially in relation tot he work, time and money needed to produce them
50
Definitions: Labour Productivity
The output per worker in a given time period. This measures the rate at which each worker is producing goods for the business
51
Definitions: Flexitime
Employees work a fixed number of hours each week or month, but can change the times at which they start and finish each day
52
Definitions: Capital Productivity
Capital productivity is a rate with measure how efficiently capital resources like machinery are used to produce output
53
Definitions: Efficiency
Businesses often use costs as an indicator of efficiency. Efficiency finds production at the minimum average cost per unit The level of output where average cost is the lowest.
54
Definitions: Economies of scale
When the average cost (per unit) reduces as output increases
55
Definitions: External economies of scale
Cost advantages for businesses in an industry as the average total cost of a business to fall when they grow
56
Definitions: Internal economies of scale
As output increases, the business has cost advantages since the average cost will fall
57
Definitions: Diseconomies of scale
Average unit costs increase due to the growth of a business
58
Definitions: Automation
Automation is the use of machines and technology to carry out production tasks with minimal or no human labour.
59
Definitions: Scarcity
Businesses/people have unlimited wants (Infinite), but limited resources (finite)
60
Definitions: Opportunity Cost
The cost and loss of alternatives when one option/choice is made.
61
Definitions: TQM
TQM is the continuous process of detecting and eliminating errors (1) in the production process to improve quality in production (1) to meet customer expectations
62
Definition: Quality
In manufacturing, a measure of excellence or a state of being free from defects, deficiencies and significant variations. In other words how well made a product is.
63
Profit
Total Revenue - Total Costs
64
Non-Current Liabilties
are debts that are payable after 12 months
65
Multinationals
A multinational company is registered in one country but operates in others
66
Globalisation
The integration of countries through the movement of goods, services, people, technology and finance
IGCSE Edexcel Business Studies
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