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Edexcel as key term Flashcards

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1
Q

Adding value

A

The process of increasing the worth of product or service

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2
Q

Adverse variance

A

A difference between actual and budgeted amounts which is bad news - e.g higher than budgeted costs

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3
Q

Autocratic

A

Managment/ leadership style wherby the manager makes all of the decisions

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4
Q

Bank overdraft

A

Borrowings from a bank on a current account which are payable on demand

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5
Q

Batch production

A

Method of production whereby a number of identical products are produced

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6
Q

Boston Matrix

A

A model which analyses the product portfolio of a busisness into four catergories (stars, cash cows, problem child and dogs)

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7
Q

Branding

A

The use of a trade name, symbol, logo or other device differentiate a product or sericve

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8
Q

Break-even

A

The point at which the total sales of a business equal total costs - i.e the business is making neither a profit nor a loss

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9
Q

Budget

A

A detalied plan of income and expeses expected over a certain period of time

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10
Q

Business cycle

A

The changes and fluctuations in economic activity that the economy undergoes over a period of time

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11
Q

Capacity utilisation

A

The proportion of total capacity that is used (expressed as a %)

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12
Q

Cash flow

A

The movements of cash into (“inflows”) and out of (“outflows”) a business

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13
Q

Cash flow forecast

A

A projection, usually by week or month, of the likely cash inflows and outflows in a business

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14
Q

Cell production

A

Method of production wherby production is split up into self-contained units

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15
Q

Centralization

A

Organizational structure where all decision making is made at the top of the hierarchy

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16
Q

Competition

A

The buisinesses that compete for a share of a market

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17
Q

Competitivness

A

The ability of a business to offer a better product than competitiors (as measured by customers)

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18
Q

Contribution

A

The difference between total sales and total variable costs

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19
Q

Demand

A

The amount of a product or service that customers are willing and able to pay for at a given time

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20
Q

Decentralisation

A

Organisational strucure where decision making is passed down the hierarchy

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21
Q

Democratic

A

Managament leadership style whereby the manager involves employees in the decision maling process

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22
Q

Distiburion Channel

A

How the business gets its products to the end consumer (with or without the use of intermediaries)

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23
Q

Dividend

A

A payment that is made by a company to its shareholders from the profit earned

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24
Q

Elasticity of Demand

A

The responsiveness of demand to a change in price or income

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25
Entrepreneur
A person who sets up a business and assumes all the risks and rewards
26
Exchange rates
The rate at which one currency can be converted into another currency
27
Favourable Variance
A difference between actual and budgeted results which is good news. E.g higher than budgeted revenue
28
Franchise
Form of business whereby one business allows another business to sell their products and services in return for a fee
29
Fixed costs
Costs that do not vary with the level of output
30
Flow production
Method of production whereby there is a continuous movement of items through the production process
31
Gross profit
Revenue - cost of sales
32
Income elasticity of demand
The responsivness of demand to a change in income
33
Inflation
An increase in the general price of goods and services over a period of time
34
Interest rates
The cost of borrowing money or the return for investing money
35
Job production
Method of production wherby one off items are produced to specific requirements
36
Just-In-Time
A method of inventory control wherby inventry arrives at the time that is needed
37
Kaizen
The process of continuous improvement
38
Laissez-faire
A hands-off approach to managament
39
Lean production
A method of production that aims to reduce waste
40
Legislation
The act of making and enhancting laws
41
Limited liabilty
Shareholders are only liable for the money they have invested - not for the overall debts and liabilities of their company
42
Liquidity
The ability of a business to pay its debts
43
Market share
The share of the total market that is owned by a particular busisness, product or brand
44
Market segmentation
The process of dividing a market into smaller sections (segments) which contain customers with similar wants and needs
45
Margin of safety
The difference between the actual level of output and the break even output
46
Market research
The process, planning, collecting, and analysing data relvant to help make marketing decisions
47
Marketing Mix
The set of marketing tools that the firm uses to pursure its marketing objectives
48
Mass market
Describes the largest group of customers with specific needs and wants in an industry
49
Niche market
A niche market is a focused segment of a larger market sector which is possible to target
50
Operating profit
Gross profit - other operating expenses
51
Organizational structure
The way that the roles and responsibilities within an organisastion are structured
52
Outsourcing
The delegation of business processes to a third party
53
Partnership
A business owned and controlled by 2 and 20 people
54
Paternalistic
Method of leadership wherby the leader decides what is best for the employees
55
Penetration pricing
Pricing strategy that involves the setting of lower, rather than higher prices in order to achieve a large market share
56
Price Skimming
Pricing strategy where a higher price is charged for a new product to take advantage of customers prepared to pay for innovation
57
Price elasticity of Demand
The responsivness of demand to a change in the price of a product
58
Primary Research
The marker research that involves the collection of data that does not yet exist
59
Private Limited Company
A business owned and controlled by shareholders whose shares cannot be publicy traded
60
Product differentiation
Making a product different from its competitors
61
Product life cycle
A theory which predicts the stages a product goes through from introduction to withdrawal from a market
62
Product Portfolio
The collection of products and brands owned and operated by a firm
63
Productivity
Measures of output per worker over a given time period
64
Profitibilty
The ability of a business to generate profits from its activities
65
Public Limited Company
A business whose shares can be traded and sold to the public
66
Qualitative Research
Market Research concerned with collecting data on attitudes, opinions, beliefs, intentions etc
67
Quality
Where a product meets a customers requirements
68
Quality assurance
Organising every process to get the product 'right first time' and prevent mistakes ever happening
69
Quantitative Research
Market research concerned with collecting data that can be quantified - e.g sales statistics
70
Sales forecasting
The process of estimating furture sales
71
Sample
In market research, a sample is a subset of a population
72
Sole trader
One-person business with unlimited liability for the debts of that business
73
Span of Control
The number of employees who are directly supervised by a manager
74
Spare Capacity
When a business is able to produce more with exisitng resources (also known as excess capacity)
75
Stock Control
The processes and controls used by a business to ensure that is has sufficent (but not too much) stock for its purposes
76
Supply
The amount of goods and services that are available to customers
77
Total costs
The total of variable costs in a business
78
Unit cost
The average production cost per untit
79
Unlimited liability
Unlimited liabilty describes the potential risk that sole traders face. They are liable for the debts of the business
80
Variable costs
Costs that vary directly in proportion to output
81
Variance
The difference between the budgeted amount and what actually happens. A variance can be "positive" (favourable) or "negative" (adverse)
82
Venture capital
Investment made by specialist funds to finance the launch, early developement or expansion of a private company
83
Waste
A cost of production. Sub-standard completed output or raw materials which are not retained in the production process
84
Working capital
The amount of money that a business has available

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