Brainscape's Knowledge GenomeTM

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


See full index

a level business > Paper 1 > Flashcards

Paper 1 Flashcards

1
Q

Added value

A

The increase in value that a business creates when producing a product/service. It is the difference between the price
of product and the cost of the inputs involved in providing it.

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

Autocratic leadership

A

The leader exerts power over employees/leads without consultation with employees.

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

Bonus

A

Extra payment made in recognition of the contribution of
employees, often linked to profits/sales/targets/objective.

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

Boston matrix

A

involves creating a name, symbol or design that
identifies and differentiates a product from others.

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

Brand

A

A name, design, symbol, or logo that differentiates a business
or product from its competitors.

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

Capital intensive production
methods

A

Those that require a relatively high level of capital
investment/cost compared to labour.

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

Centralised structure

A

Is an organisational structure where business decisions are made at the
top of the hierarchy by senior management/or at the
headquarters of a business.

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

Competitive pricing

A

Is setting the price of a product or service similar
to that set by rivals.

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

Competition

A

Is the rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume.

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

Consultation

A

Discussions with employees about working methods/non-financial technique to improve staff performance.

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

Cost efficiency

A

Is minimising costs/expenses/waste when producing a product or service.

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

Customer satisfaction

A

Measures how products or services supplied by a company meet customer expectation.

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

Cost plus pricing

A

Is a cost-based method for setting the prices of goods and services and is calculated by adding a mark-up percentage to the cost of the product.

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

Complementary goods

A

Goods that are purchased together because they are consumed together.

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

Differentiation

A

A feature of a product or service that distinguishes it from its competitors.

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

Distribution

A

The delivery of goods from the producer to the consumer.

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

Democratic leadership

A

Is a leadership style where the leaders are prepared to share decision-
making with employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Design mix (2 marks)

A

The way in which function, aesthetics and economic manufacture are
combined in the overall design.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Design mix (20 marks)

A

Function relates to the quality and reliability of a product. Cost of manufacture relates to whether the design allows the product to be made and sold profitably. Aesthetics relates to the appearance of the
smartphone.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Decentralised Organisational
Structure

A

An organisational structure where daily operations
and decision- making responsibilities are delegated down the organisation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Demand

A

The amount of goods and services consumers are willing and able to buy at a given price at a given time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Distribution channels

A

The stages/methods involved in getting the finished product to customers and/or consumers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

E-commerce

A

Is the buying and selling of products and services by businesses and consumers through electronic media such as the internet.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Entrepreneur

A

A person who sets up a business and takes risks to generate a profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Entrepreneurial characteristics

A

Qualities or traits demonstrated by an individual starting up in business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Empowerment

A

Is giving authority or power to workers to allow them to make their own decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Ethical sourcing

A

Is where a business buys materials and products that are produced using fair working conditions and/or with no negative impact on the environment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

External recruitment

A

Is when the business looks to fill the vacancy from outside of the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Extension strategies

A

Methods used to prolong the life of a product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Face-to-face survey

A

A research method used where the interviewer communicates directly with the respondent using a questionnaire.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Financial methods/incentives

A

Are monetary methods used to motivate workers such as
piecework, commission, profit share & performance related pay.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Flat organisations

A

Fewer levels of hierarchy, and lines of communication are shorter when
compared to a tall organisation structure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Flexible working

A

Relates to a variety of working arrangements in terms of working hours, working locations and job variety.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Focus group

A

A group of people who participate in a discussion as part of market research to give feedback about a product or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Induction training

A

Training provided to new employees at the start of an employment contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Income elasticity of demand (YED)

A

The relationship between the change in quantity demanded and a change in income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Internal recruitment

A

Is when the business looks to fill a job vacancy from within the company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Inferior goods

A

Goods for which demand will fall if income rises or rise if income falls.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Laissez-faire leadership

A

Is a type of leadership style in which leaders allow group members to make decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Labour costs

A

Are the total amount of money spent on employees within the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Labour-intensive production
methods

A

Are those that require a relatively high level of labour
compared to capital investment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Market research

A

Is a systematic gathering of data regarding buyer intentions and market conditions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Market orientation

A

Is when a business focuses on discovering and meeting the stated or hidden needs and desires of its customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Mass market

A

A large unsegmented market where mass appeal products are on sale.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Marketing mix

A

Is the way a business uses price, product, place, and promotion to market and sell its products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Marketing

A

Identifying and satisfying of customer needs including the promoting and selling of products and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Market Share

A

The percentage of an industry or market’s total sales that is earned by a particular company over a specified time period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Market Segmentation

A

Is dividing the market into groups of people with similar attributes or common characteristics.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Market mapping

A

Is a form of market positioning. It is the use of a 2-dimensional diagram that plots products or services in a market using two key variables.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Non-financial techniques

A

Include delegation, consultation, empowerment, flexible working, job enlargement, job enrichment, job rotation and team working.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Niche market

A

A small part of the overall market that has certain special characteristics.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Normal goods

A

Goods for which demand will rise if income rises or fall if income falls.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

On the job training

A

training that takes place while doing the job.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Off the job training

A

Training that takes place away from the work area.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Online retailing

A

The sale of goods and service using the internet.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Organisation structure

A

Shows the roles, responsibilities, and hierarchy of staff in an organisation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Primary research

A

Is a new research that is specific to the business needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Price elasticity of demand (PED)

A

The responsiveness of quantity demanded to a change in price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Profit sharing

A

Is a form of financial incentive given to employees, where part of the profit of the business is shared amongst the employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Profit

A

Is total revenue minus total cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Product life cycle

A

Describes the stages a product goes through from when it was first thought of until it is finally removed from the market. It consists of stages such as introduction, growth, maturity, and decline.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Product innovation

A

The development/creation of products not previously available.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Product portfolio

A

The range of products/services that is sold/produced by a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Place

A

Is where the product can be purchased and is also the process of making a product or service available to the consumer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Penetration pricing

A

Is a practice of offering a low price for a new product or service during an initial offer in order to attract customers away from competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Predatory pricing

A

When a business sells goods or services at a very low price or below cost price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Product orientation

A

Is when a business focuses on selling the products it develops rather than what the customer wants/needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Product trials

A

When a business allows consumers to test a product or service to identify potential demand and/or free samples are provided to encourage future purchases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Profit maximisation

A

Is when a business decision aims to make asmuch profit from the business operations as possible by increasing revenues or decreasing costs.

70
Q

Promotion

A

Are methods which communicate information about
the product, brand, or service to the user.

71
Q

Price comparison websites

A

Websites which compare the price of a particular product or service in different stores or from different companies.

72
Q

Pricing strategies

A

Refer to the method(s) used by businesses to decide how the prices of their products and services will be set.

73
Q

Price skimming

A

Is a pricing strategy used by businesses to initially set a high price for a new product which will reduce over time.

74
Q

Paternalistic leadership

A

A leadership style where the leader makes decisions but takes into account the welfare of employees.

75
Q

Price elastic demand

A

A change in price results in a greater change in demand. (more than 1)

76
Q

Price inelastic demand

A

A change in price results in a proportionately smaller change in demand. (less than 1

77
Q

Profit satisficing

A

Making enough profit to satisfy the needs of the business owner(s).

78
Q

Qualitative Research

A

Is a market research collected relating to the opinions and beliefs of consumers.

79
Q

Quantitative research

A

The collection of data that can be quantified.

80
Q

Revenue

A

Total income earned by a business from the sales of its products.

81
Q

Recruitment

A

The process of finding and hiring the best-qualified candidate for a job opening.

82
Q

Redundancy

A

When a job is no longer needed by a business.

83
Q

Sales maximisation

A

An attempt to generate as much sales revenue as possible in a given time period.

84
Q

Secondary market Research

A

Gathering data or information that already exists/which has been collected for another purpose.

85
Q

Social media

A

Websites and applications that enable users to create and share content to participate in social networking.

86
Q

Social objective

A

Is a goal which benefits society.

87
Q

Sponsorship

A

Is a form of marketing in which a payment is made by company/or goods supplied by a company, for the right to be associated with a person or event.

88
Q

Sampling

A

Involves using a segment (sample) of a population to
represent the entire population’s attitudes.

89
Q

Substitute goods

A

Are goods that can be used to satisfy the same needs in place of another.

90
Q

Supply

A

Is the amount a producer is willing and able to supply at a given price in a given time period.

91
Q

Span of control

A

The number of employees under a manager’s direct control in a business.
Tall organisational structure- has many levels of hierarchy with a
narrow span of control.

92
Q

Test marketing

A

Involves trialing the product in a small area or to a limited number of users to assess the suitability of a product.

93
Q

Trade-off

A

Occurs when two objectives cannot be fully achieved. It is a compromise that involves giving up something in return for gaining something else.

94
Q

Training

A

The acquisition of knowledge, skills, and competencies as a result of the
teaching of vocational or practical skills.

95
Q

Uncertainty

A

The inability to predict/a lack of knowledge about future events and outcomes.

96
Q

Waste minimisation

A

Is an approach to cut out/reduce waste in the production/design process.

97
Q

Zero hours’ contract/ Flexible
employment

A

Is where employees work only when they are needed with no guaranteed hours.

98
Q

Adverse variance

A

Is where actual figures are worse than the budgeted figures.

99
Q

Appreciation

A

The gradual rise in value/price of a currency against another currency

100
Q

Bank loan

A

A fixed sum paid back over a set period with regular monthly payments with interest.

101
Q

Batch production

A

A method that involves completing one operation at a time on all units before performing the next.

102
Q

Break even output

A

The output a business needs to produce so that its total revenue and total costs are the same.

103
Q

Break-even analysis

A

Is where variable and fixed costs are compared with sales revenue in order to determine the level of sales volume at which the business makes neither a profit nor a loss (the break-even point).

104
Q

Break-even point

A

The point at which total revenue and total costs are the same.

105
Q

Budgeting

A

Provides a target for costs or revenue that a business or department must aim to reach over a given period of time.

106
Q

Buffer inventory

A

Stocks held as a precaution to cope with unforeseen demand.

107
Q

Business angels

A

Are entrepreneurial individuals who provide capital in return for a proportion of the company equity.

108
Q

Business plan

A

A document/plan for the development of the business giving details such as the product, resources, and cost/revenue/cash flow forecast.

109
Q

Capacity utilisation

A

The percentage of total capacity that is actually being used in a period.

110
Q

Cash flow forecasting

A

Is a form of budget which enables a business to plan future cash requirements to avoid liquidity issues.

111
Q

Cash flow forecasts

A

The predicted flow of cash into and out of a business over a period of time.

112
Q

Competitor

A

Is a business in the same market that offers a similar product or service.

113
Q

Consumer Trends

A

Habits or behaviour of those involved in the use of goods and services.

114
Q

Crowd funding

A

Is a project to raise finance by a large number of people who each contribute a relatively small amount to the total.

115
Q

Current ratio

A

Gives an idea whether the business would be able to repay its liabilities with its assets.

116
Q

Depreciation

A

Of the currency means it can buy less of another currency than previously; it has gone down in value.

117
Q

Economic growth

A

The rise in output of an economy as measured by the growth in GDP, usually a s a percentage.

118
Q

Exchange rate

A

Is the price of one currency in terms of another.

119
Q

External finance

A

Money raised from outside business.

120
Q

Fixed costs

A

Are costs that do not vary with output.

121
Q

Flow production

A

Is associated with mass production where raw materials are transformed into a finished product via a continuous process.

122
Q

Franchisees

A

Pay an initial fee and ongoing royalties for the use of a trademark, ongoing support, and the rights to use the franchisors systems of doing business and sell its products and services.

123
Q

Franchising

A

Is a method of business ownership that involves a business selling the rights to another business to operate under its name and use its products.

124
Q

Grants

A

Are a sum of money given by governments or other organisations for a specific purpose.

125
Q

Gross profit

A

Total revenue minus the cost of goods sold.

126
Q

Inflation

A

An increase in the aggregate/general level of prices in an economy over a period of time.

127
Q

Intellectual property rights legislation

A

A form of legal protection that includes patents / copyrights / trademarks.

128
Q

Internal finance

A

Money generated by the business or its current owners.

129
Q

Inventory control

A

The optimum quantity of goods/components a business holds for the purpose of resale/production.

130
Q

Job production

A

Involves a business producing items that meet the specific requirements of the customer.

131
Q

Just in time

A

Involves holding no buffer inventory with supplies arriving just before they are required by the business.

132
Q

Kaizen

A

Is a Japanese philosophy which places emphasis on making small
improvements in all business processes as it tries to achieve a culture of continuous improvement; good processes bring good results.

133
Q

Labour-intensive production

A

Requires a high amount of human capital.

134
Q

Lean production

A

An approach to operations that focuses on the reduction of resource use.

135
Q

Leasing

A

Allows a company to rent/without owning an asset.

136
Q

Legislation

A

Is the making of laws for people to follow.

137
Q

Limited liability

A

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

138
Q

Liquidity

A

Shows how quickly a business can access cash in order to meet its short-term debts.

139
Q

Loan

A

Has to be paid back, usually with interest and at regular intervals.

140
Q

Margin of safety

A

The range of output between the break-even level and the current level of output, over which a profit is made.

141
Q

Over-utilisation

A

The position where a business is running at full capacity & straining resources.

142
Q

Partnership

A

A form of business in which two or more individuals contribute
money, resources and skills and share profits and losses in accordance with a partnership agreement.

143
Q

Patent

A

Provides legal protection for a product or process.

144
Q

Private limited companies (LTD)

A

Is a business owned by shareholders where their liability for company debts is limited which means that shareholders can only lose the money they have invested.

145
Q

Product recalls

A

Are when a company calls back its products from consumers due to a fault or problem.

146
Q

Productivity

A

A measure of output of a person, machine, or process over a period of time.

147
Q

Profitability

A

Is the degree to which a business makes a profit from its activities.

148
Q

Public limited company (PLC)

A

Can offer shares on a stock exchange to the general public and shareholders are only limited to potentially lose the value of the amount paid for the shares.

149
Q

Quality assurance systems

A

Are the processes that ensure production quality meets the requirements of the business/customers.

150
Q

Quality management

A

The process of a business maintaining a desired level of excellence in a product/service by paying attention to each stage of the process.

151
Q

Rate of inflation

A

Is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of money is falling.

152
Q

Retained profits

A

Any remaining profits which are kept (retained) in the business for reinvestment in its operations rather than paid out to shareholders.

153
Q

Sales forecasts

A

The process of estimating future sales either based on past data, industry comparisons or economic trends.

154
Q

Sales volume

A

Is the quantity of units sold.

155
Q

Share capital

A

Money introduced into the business through the sale of shares.

156
Q

Short product lead-in times

A

Are the length of time between the first emergence of the product concept/design and its launch into the market.

157
Q

Sole trader

A

Is a business set up and owned by one person.

158
Q

Specialisation

A

The production of a limited range of goods.

159
Q

Standardisation

A

Using uniform resources and activities or producing a uniform product.

160
Q

Stock market flotation

A

The process of converting a business into a public limited company by issuing shares to the public.

161
Q

Taxation

A

How the government raise money to finance its expenditure.

162
Q

Trade credit

A

Is given by suppliers to a business to purchase materials with payment at a later date.

163
Q

Trademark

A

A symbol, logo, word or words, name, figures, letter, image or mark legally registered.

164
Q

Under-utilisation

A

The position where a business is producing at less than full
capacity.

165
Q

Unemployment

A

Is when people who are able, available, and willing, and actively seeking work at the going wage rate but who cannot find a job.

166
Q

Unlimited liability

A

A legal status which means that the owner of a business is personally liable for all business debts.

167
Q

Variable costs

A

Costs to a business that vary with output.

168
Q

Variance analysis

A

The process of calculating variances and attempting to identify their causes

169
Q

Variance

A

The difference between actual financial outcomes & those budgeted.

170
Q

Venture capital

A

A method/ source of finance to fund a business where the risk is greater for the investor.

171
Q

Working capital

A

The cash available forday-to-day operations of a business.

172
Q

Zero-based budgeting

A

Is a method of budgeting which does not use previous data/a budget from scratch.

a level business (4 decks)

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