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Business A-level Edexcel > Summer Key terms > Flashcards

Summer Key terms Flashcards

1
Q

Market

A

all of the buyers and sellers that trade a particular type of product in a particular place

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2
Q

Market size

A

the total value of sales in a market over a period of time

the total number of consumers in that market

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3
Q

Competition

A

the contest between organisations that provide similar or the same products/services

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4
Q

Risk

A

When the potential outcomes of a decision are known

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5
Q

Complimentary goods

A

products which are bought and used together

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6
Q

External shocks

A

an unexpected change which takes place outside of a business and affects the economy

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7
Q

Seasonality

A

where the levels of business activity varies based on the time of year

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8
Q

Substitute

A

a product that can be used to replace another because customers see them as being very similar products

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9
Q

Indirect taxes

A

tax on goods and services rather than profit e.g. VAT

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10
Q

Government subsidies

A

any form of government support offered to producers (and occasionally consumers)

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11
Q

Equilibrium

A

when there is a balance between supply and demand, making the price stable

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12
Q

Price inelastic of demand

A

demand for the product isn’t very dependent on price

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13
Q

Price elastic of demand

A

demand for the product is very dependent on price

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14
Q

Inferior goods

A

a product that has a negative income elasticity of demand

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15
Q

Necessity

A

products/services that consumers buy regardless of the changes in their income levels

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16
Q

Luxury goods

A

demand increases more than what is proportional as income rises

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17
Q

Product/ service design

A

The process of creating a new product that will be sold by the business

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18
Q

Resource depletion

A

when natural resources are used quicker than the rate of replenishment

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19
Q

Recycling

A

the conversion of waste into renewable material

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20
Q

Re-use

A

using an item, whether for its original purpose or to fulfill a different function

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21
Q

Viral marketing

A

the use of social networks to rapidly raise awareness of a new product/service

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22
Q

Emotional branding

A

seeks to create a bond between the consumer and product by provoking an emotional response to advertisement

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23
Q

Price

A

the amount of money that is paid for a product/service

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24
Q

Predatory pricing

A

deliberately lowering prices to force another business out of the market

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25
Q

Psychological pricing

A

when a firm sets a price for the product in order to entice the customer

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26
Q

Manufacturer

A

a person/company that produces finished goods and raw materials by using various equipment and resources

then sells them to consumers, wholesalers, distributors and retailers

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27
Q

Wholesaler

A

a business that buys goods from manufacturers in bulk and sells them in smaller quantities to retailers

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28
Q

Retailer

A

a business or person that sells goods to the consumers

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29
Q

Intermediaries

A

individuals or companies that behave as middlemen between parties

(organisations involved in each stage of distribution)

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30
Q

Cash cow

A

a product that has a high market share and a low market growth

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31
Q

Problem child/question mark

A

a product that has a small market share and a high market growth

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32
Q

Star

A

a product that has a high market share and a high market growth

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33
Q

Business 2 Consumer marketing

A

the marketing of a business’ product to a consumer

Where businesses sell directly to consumers.

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34
Q

Multiskilling

A

where staff are allowed to carry out a variety of tasks rather than specialise

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35
Q

Flexible hrs

A

where staff vary the hrs they work to meet both the needs of the business and to some extent their own

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36
Q

Home working

A

involves employees carrying out all/ part of their job at home without the need to attend the business’ premises

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37
Q

Outsourcing

A

when a business has one or more of its activities carried out by another business

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38
Q

Dismissal

A

When an employer ends an employee’s contract of employment due to misconduct or for breaching company rules

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39
Q

Redundancy

A

When an employee loses their job because their job role is no longer required due to a lack of business/ restructuring

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40
Q

Employer/employee relationships

A

The working connection between employees and employers in the workplace

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41
Q

Individual bargaining

A

When a single employee negotiates work-related issues with their employer

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42
Q

Trade unions

A

A group that acts on behalf of a group of employees in negotiations with employers

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43
Q

Recruitment process

A

The process of finding and hiring a person for a specific job role that needs filling within a business

44
Q

Person specification

A

Describes the personal attributes desired in a potential employer
(The skills and experience required to succeed in a specified job application.)

45
Q

Job description

A

A summary of a job role, including working hrs, salaries, and duties

46
Q

Selection process

A

The process of deciding which applicant for a job a business should accept

47
Q

Training

A

The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs successfully

48
Q

Induction training

A

Training provided to new employees to introduce them to the business and their job role

49
Q

Hierarchy

A

The series of levels in a business organised by the amount of authority and responsibility that workers have

50
Q

Span of control

A

The number of employees a manager is responsible for

51
Q

Chain of command

A

The path of communication and authority up and down the hierarchy of a business

52
Q

Piecework

A

when workers are paid per unit produced

53
Q

Commission

A

an amount of money paid to an employee that is based on a percentage of the sales they have achieved

54
Q

Bonus

A

workers are paid extra on top of their salary once an agreed target has been met

55
Q

Profit share

A

a scheme that pays employees an additional amount based on the yrs profit

56
Q

Performance related pay

A

workers are paid based on their performance or the performance of the business

57
Q

Delegation

A

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

58
Q

Team working

A

puts workers into small groups and lets them organise their own work

59
Q

Job enrichment

A

when workers are given more challenging work and training they need to do it

60
Q

Job rotation

A

when workers are moved between different tasks

61
Q

Job enlargement

A

when workers are given a greater range of work at the same level

62
Q

Leadership

A

the functions of ruling, guiding and inspiring others

a person who has a vision that they share with others, whilst pushing them in the right direction

63
Q

Management

A

the planning, organising, directing and controlling all or part of a business

(a person who makes decisions that affect day to day running of a business)

64
Q

Laissez faire leadership

A

where the leader may offer coaching and support to employees, but will rarely interfere in the running of the business

65
Q

Intrapreneur

A

when an employee of a business shows entrepreneurial skills within the business

66
Q

Profit satisficing

A

when a business is making enough profit so that the owner has a desirable quality of life, or shareholders are paid satisfactory dividends

67
Q

Limited liability

A

owners are legally responsible for all business debts

68
Q

Unlimited liability

A

owners are only liable for the money they have invested in the business

69
Q

Shareholders

A

an individual that owns shares in a business

70
Q

Owners capital

A

money the owner(s) invest into the business, often from their personal savings

71
Q

External finance

A

money that comes from outside the business e.g. banks, business angels

72
Q

Peer to peer funding

A

where individuals lend money to other individuals/businesses without having to use the traditional banking sector

73
Q

Business angels

A

wealthy individuals who invest money into new or innovative businesses that they think have the potential to be successful

74
Q

Overdraft

A

when a bank allows a business to have a negative bank balance

75
Q

Grant

A

a fixed sum of money given to a business by a government

76
Q

Sales revenue

A

the amount of money a firm has earned in a given time period

77
Q

Variable costs

A

costs that change when output change e.g. raw materials

78
Q

Contribution

A

the difference between the selling price and the variable costs of a product

79
Q

Adverse variance

A

when a firm is performing worse than expected

80
Q

Favourable variance

A

when a firm is performing better than expected

81
Q

Gross profit

A

the difference between total revenue and cost of sales

82
Q

Overheads (indirect costs)

A

costs such as rent that dont directly relate to the production/sale of goods/services

83
Q

Operating profit

A

the difference between gross profit and operating expenses

how much profit has been made in total from the trading activities of the business before any account is taken of how the business is financed.

84
Q

Net profit (PFTY)

A

the difference between operating profit and interest

what is left after all the costs of a business have been taken from its sales revenue.

85
Q

Statement of financial position

A

a snapshot of a firms finances at a particular time

86
Q

Non current assets

A

an asset that the business is likely to keep for more than a yr

87
Q

Current assets

A

an asset that the business is likely to EXCHANGE for cash within the accounting yr

88
Q

Current liabilities

A

a debt which NEEDS to be paid off within a yr

89
Q

Non current liabilities

A

a debt that the business will pay off over SEVERAL yrs

90
Q

Working capital

A

the amount of cash that the business has available to pay its day to day debts

91
Q

Job production

A

a production method in which one off items are made

92
Q

Cell production

A

an assembly line is divided into sets of tasks, each of which is completed by a work group

93
Q

Average costs

A

the cost per unit manufactured in a production run

94
Q

Capacity

A

the maximum output that it can produce in a given period

95
Q

Under utilisation

A

not using machines or resources to the fullest

96
Q

Usage rate

A

the quantity of a product/service consumed by a user in a given period

97
Q

Lead time

A

how long it takes from an order being placed with the supplier and the items arriving

98
Q

Reorder level

A

the level of stocks at which orders need to be placed

99
Q

Reorder quantity

A

the amount the business orders from its suppliers

100
Q

Quality

A

the extent to which a good/service meets customer requirements

(how “fit for purpose” a good is)

101
Q

Quality circles

A

a meeting of a group of employees to discuss quality

102
Q

Consumer price index (CPI)

A

an index that tracks the changes in the average cost of a “basket” of goods and services that an average household regularly buys

103
Q

Exchange rate appreciation

A

when the value of currency increases relative to that of another

104
Q

Gross domestic product (GDP)

A

the total market value of goods and services produced within a nation over a period of time (usually a yr)

105
Q

Recession

A

a temporary decline in a country’s economic activity

106
Q

Environmental legislation

A

legislation designed to protect the environment against negative impacts caused by business’s production

107
Q

Competition policy

A

aims to protect the interests of consumers and businesses as well as aiming to restrict anti-competitive practices such as abusing market power

Business A-level Edexcel (14 decks)

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